Management is
the process used to accomplish organizational goals through planning,
organizing, leading, and controlling people and other organizational resources.
Management is used to control its employees to maximize its effort to obtain
its objective using the available resources to meet the customer demand.
<span> </span>
Answer:
1. Compute the contribution margin percentage.
2. Compute the selling price if variable costs are $16 per unit.
3. Suppose 65 comma 000 units are sold. Compute the margin of safety in units and dollars.
- margin of safety in $ = $633,550
- margin of safety in % = 36.55%
4. What does this tell you about the risk of McKnight making a loss? What are the most likely reasons for this risk to increase?
- Since the contribution margin is relatively high, this means that the production costs are relatively low (compared to selling price). The associated risks may come from high leverage, e.g. machinery purchased on credit that results in high interest expense. For the most part, having a high contribution margin is generally very good, just ask Apple.
Explanation:
break even point is $ = $1,100,000 (= break even point units x selling price)
fixed costs = $660,000
contribution margin % = (total sales - total variable costs) / total sales
total variable costs = $1,100,000 - $660,000 = $440,000
contribution margin % = ($1,100,000 - $660,000) / $1,100,000 = 40%
variable costs = $16 per unit
0.4 = (x - $16) / x
0.4x = x - $16
$16 = 0.6x
x = $26.67
65,000 x $26.67 = $1,733,550
margin of safety in $ = $1,733,550 - $1,100,000 = $633,550
margin of safety in % = $633,550 / $1,733,550 = 36.55%
<span>Price floors can have differing effects depending on other government policies. If the government agrees to purchase a specific maximum of unsold products at the price floor, it incentivizes a business to increase supply or at least to stay in the industry despite slow sales. Many governments do this for areas they see as strategically or politically significant, such as agriculture, or to prevent what they consider to be unfairly low prices of its products. If a foreign government sets a price floor for coffee beans, for example, and then agrees to buy the surplus up to a certain amount, it encourages growers to maintain their operations by placing an effective hedge against price fluctuations. If you own a small coffee shop, these price floors mean that you’re more likely to be able to find your imported beans, but you’ll pay more for them</span>
The answer is product development. The formation of products with new or dissimilar features that agreement new or additional welfares to the customer. The product development may include alteration of an current product or its performance or formulation of an completely new product that gratifies a afresh distinct customer want or market place.
If you need to indicate the missing ammount of each letter in the grahp then it will be like follows:
For the first case:
A = $9,600 + $5,000 + $8,000 = $22,600$22,600 + $1,000 – B = $17,000
B = $22,600 + $1,000 – $17,000 = $6,600$17,000 + C = $20,000
C = $20,000 – $17,000 = $3,000
D = $20,000 – $3,400 = $16,600
<span>E = ($24,500 – $2,500) – $16,600 = $5,400
</span><span>F = $5,400 – $2,500 = $2,900
</span>And now for the second case:
G + $8,000 + $4,000 = $16,000
G = $16,000 – $8,000 – $4,000 = $4,000$16,000 + H – $3,000 = $22,000
H = $22,000 + $3,000 – $16,000 = $9,000(I – $1,400) – K = $7,000(I – $1,400) – $22,800 = $7,000
<span>I = $1,400 + $22,800 + $7,000 = $31,200
</span>J = $22,000 + $3,300 = $25,300
K = $25,300 – $2,500 = $22,800$7,000 – L = $5,000
<span>L = $2,000</span>
