Answer:
$635,000 and : 34%
Explanation:
Margins of safety is the difference between expected sales and the break-even point.
For Zhao, expected sales are 10,000 units
The break-even points in units = fixed cost/ contribution margin per unit
fixed costs = $429,000
Contribution margin per unit = selling price - variable costs per unit
=$187 - $122
=$65
break-even point in units = $429,000/$65
break-even point = 6600 units
Margin of safety = 10,000 - 6600 units
=3400 units
In dollars is equal to margin of safety in units x selling price
=3400 x 187
<u>=$635,000</u>
as a percent of expected sales.
=3400/10000 x 100
=0.34 x 10,000
=34%
Answer:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
4. How does a company receives its cash?
Explanation:
The Cashflow statement deals with the cash transactions of the company with a view to know how actual cash moves through the company. As a result, it can answer questions related to the cash transactions of the company.
This includes:
- Why there were changes in the cash account because it shows what activities brought in cash and which took cash.
- Where the company spends its cash because those entries will be shown.
- Where the company gets its cash as well.
<span>A superior product.
This is about the product concept. Product Concept states that consumers prefer product which is of the highest quality, performance and features. Before marketing any product marketers study the product concept to give the best product to the customer.</span>
Answer:
b. she could not meet a rapid rise in demand.
Explanation:
Marketing penetration strategy is an approach where a business deliberately sets a low price to a product it's introducing to the market. The objective of setting the low price is to entice customers to buy the product, thereby creating demand for it. The penetration strategy discourages other firms from entering the market. Marketers using this strategy seeks to establish a sizeable market share for a product within a short period.
Marie cannot apply the market penetration strategy because of her limited production capacity. This approach increases the demand for a product in a short time. Marie will not be able to cope with an increase in demand at the moment.
