Question: Why would someone use the PV ratio instead of the
Why would someone use the PV ratio instead of the unit contribution margin?
Answer to relevant QuestionsWhy should managers be interested in calculating the profit break-even point? For this exercise, use the following information:• Total fixed costs are estimated at $100,000.• Total units expected to be sold are 50,000.• Total variable costs are $300,000.• Unit selling price is $8.00.Calculate ...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 ...Explain how the economic ordering quantity method works. From the information below,1. List of the working capital accounts.2. Calculate the net working capital.Buildings ............ $100,000Cash ................ 5,000Trade receivables ........... 25,000Trade and other ...
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