Using the information in Exercise 1, if rent were increased by $25,000 and variable costs and unit selling price remained unchanged, what would be the new PV ratio and break-even point in units and in revenue?
Answer to relevant QuestionsA company expects to sell 75,000 widgets at a price of $10.00. The unit variable costs are estimated at $8.00, and the fixed costs are estimated at $125,000. On the basis of this information, calculate the following:1. ...Company A and Company B are both selling $2.5 million worth of goods. Company A’s PV ratio is 0.40 while B’s is 0.60. Company B’s fixed costs are $1 million, which puts the business at a competitive disadvantage versus ...With an example, differentiate between cash flow and profit. Differentiate between the process related to the traditional payment system and the post office box system. A company has decided to market its products more aggressively. Current sales are 30,000 units per year and are expected to increase by 50% next year. Carrying costs are $0.20 per unit, and order costs are $7.00. The firm ...
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