Imagine you have a business, you are selling a one of a kind gadget, the cost you incurred for the materials is 2,000 and you wanted to sell it at P3,000. However, you are paying a rent of P20,000 for your business operation. How many units do you think you need to sell in order not to incur losses or able to earn. What will you do to achieve a profit?
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Imagine you have a business, you are selling a one of a kind gadget, the cost you incurred for the materials is 2,000 and you wanted to sell it at P3,000. However, you are paying a rent of P20,000 for your business operation. How many units do you think you need to sell in order not to incur losses or able to earn. What will you do to achieve a profit?
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- Imagine you have a business, you are selling a one of a kind gadget, the cost you incurred for the materials is 2,000 and you wanted to sell it at P3 000. However, you are paying a rent of P20 000 for your business operation. How many units do you think you need to sell in order not to incur losses or able to eamWhat will you do to achieve a profit?Give me sell? (financial accounting)Assume you are the owner of a cosmetic store. Let x represent thenumber of eyeliner you sell and y represent the number of mascara yousell. Suppose you make $3 on each eyeliner and lose $1 on eachmascara sold. What is the equation that you want to maximize in orderto maximize your profit? (d) Given the constraints above in part a, how many eyeliner and mascarashould you sell in order to make the largest profit? (e) What is the amount of the largest profit?
- Give typing answer with explanation and conclusion 1. Discuss your reaction for the following mental accounting scenarios Question 3—Part A: Suppose that you've taken half a day off work to shop for a new, ride-on lawn mower. You have a big yard, and trimming it with your current, push-propelled mower simply takes too long. You have been eyeing the Model A300, which offers all the features you require at a cost of $2,000. As luck would have it, you won $500 the previous evening playing bingo at your local Rotary Club. When you arrive at the lawn mower shop, you notice that they also stock Model A305, which has some fancy, desirable new options. This premium model costs $2,250. Considering the previous night's winnings, will you indulge yourself by purchasing the A305? a. yes. b. no.Shonda & Shonda is a company that does land surveys and engineering consulting. They have an opportunity to purchase new computer equipment that will allow them to render their drawings and surveys much more quickly. The new equipment will cost them an additional $1.200 per month, but they will be able to increase their sales by 10% per year. Their current annual cost and break-even figures are as follows: A. What will be the impact on the break-even point if Shonda & Shonda purchases the new computer? B. What will be the impact on net operating income if Shonda & Shonda purchases the new computer? C. What would be your recommendation to Shonda & Shonda regarding this purchase?2. Suppose a business owner is trying to decide whether to invest in a new piece of machinery. The machine costs $160,000, and it is expected to generate revenue of $200,000. a. Solve for the expected rate of return on this machine. a. If the interest rate the business owner has to pay is 20%, will the business owner buy this machine? b. If the interest rate the business owner has to pay is 25%, will the business owner buy this machine? c. If the interest rate the business owner has to pay is 30%, will the business owner buy this machine?
- Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses? D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit? E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.You own a furniture manufacturing company. You are looking to expand into glass furniture and need to buy new manufacturing equipment to manufacture this type of furniture. You have researched many suppliers but have found that two machines will best suit your needs. The cost of machine 1 is $90,000, and the cost of machine 2 is $110,000. The estimated net profits the machines will generate are in the following table: Net Profit Machine 1 (cost $90,000) Machine 2 (cost $110,000) Year 1 $20,000 $10,000 Year 2 $30,000 $20,000 Year 3 $40,000 $40,000 Year 4 $20,000 $60,000 Year 5 $20,000 $50,000 Total $130,000 $180,000 Compare the ARR for both machines and decide which machine you should buy? 2.Critically evaluate the ARR technique in evaluating investment options?A company pays a sales representative 0.50 $ per kilometer in return for using its own car for company works. However, the company is considering another solution for this situation. So much so that the company will buy a car and make the car available to its representative. The data for this solution are as follows: The cost of buying such a car is 24,000 $ and it has a service life of 5 years. The market value at the end of this life is 7,000 $. The cost of keeping the car in a garage when it is not running is 2,500 $ per year, and the total fuel-tyre-maintenance costs are 0.30 $ per kilometer. If the interest rate is 15%, how many kilometers must the sales representative travel so that the costs of both methods are equal (break-even)? (please explain) a) 42.356 b) 43.107 c) 44.226 d) 45.340
- As the owner of the small business, you are tasked to determine the right price for your product before you open your business. In your business, you have a fixed cost of ₱50 000, and the variable cost per unit is ₱100. Using the formula for the break-even point, you must analyze the number of units needed to produce to break-even. You must also observe what will happen to the break-even units as the price approaches zero or infinity.Assume you want to purchase a used MacBook pro which is priced at AED 4,500. You are able to negotiate and purchase it for AED 4,300. However, you think that the macbook is worth AED 4,200. According to historical cost principle, what is the actual cost of the item?You own a furniture manufacturing company. You are looking to expand into glass furniture and need to buy new manufacturing equipment to manufacture this type of furniture. You have researched many suppliers but have found that two machines will best suit your needs. The cost of machine 1 is $90,000, and the cost of machine 2 is $110,000. The estimated net profits the machines will generate are in the attached image. a)Compare the ARR for both machines and decide which machine you should buy. b)Critically evaluate the ARR technique in evaluating investment options.