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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- 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 are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current salary. You look into opening a small grocery store. Suppose that the store has annual costs of $150,000 for labor, $50,000 for rent, and $30,000 for equipment. There is a one-half probability that revenues will be $210,000 and a one-half probability that revenues will be $400,000. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Enter a loss as a negative number. a. In the low-revenue situation, what will your accounting profit or loss be? $ What will your accounting profit or loss be in the high-revenue situation? $ b. On average, how much do you expect your revenue to be? $ Your accounting profit? $ Your economic profit? $…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
- Suppose your company sells a 3 pack of lenses that attach to smart phones to improve the quality of pictures people take. You pay 29.95 for each 3 Pack and sell them for 59.95. What is hyour Cost of Goods Sold Perrcentage for htis item? Suppose you sell 8,000 of the 3 pack of lenses described in question 3 above in one year. Your cost on each 3 pack is 29.95 and you sell them for 59.95. If your operating expenses for the year total 144,080, what are your net income and net profit margin percentage?Suppose, you start your own business which is a pet store. The total cost of purchasing supplies and hiring labor is $50,000 per year. To run the pet store, you quit your job that pays $45,000 per year and use the building that you already own (a building like yours rents out for $60,000 per year). Also, your car payment is $24,000 per year (you may use your car for the business sometimes). What is the total opportunity cost of opening up a pet store for a year?PLEASE ANSWER IT NOW, I NEED THE ASNWER. A hardware store purchased a tool at P20,000 per unit. At what price should the tool be sold so that giving a 15% discount, will provide them with 25% profit?
- A small company manufactures a certain item and sells it online. The company has a business model where the cost, C in dollars, to make x items is given by the equation C = 20/3 x + 50. The revenue R , in dollars , made by selling x items is given by the equation R = 10x. How many items must the company sell in order for the cost to equal their revenue?Riley is interested in buying a local coffee shop and wants to determine its profitability potential. To do so, his first step is to calculate the break-even point. This will tell Riley at what level of sales he will start to make a profit. The current business owner provided the following information: income statement total per unit Units 44,000 1 Sales $220,000 $5.00 Cost of Sales(variable expenses) 88,000 2.00 Gross Margin 132,000 3.00 Operating Costs(fixed expneses) 125,500 2.85 Net Profit 6,500 15 Calculate break-even based on units. Using the information from the income statement provided, calculate number of units which must be sold to break-even.…The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 10,000 utensils at $0.65 each. Arthur sells its utensils wholesale for $0.75 each; the average cost per unit is $0.72, of which $0.15 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits?