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(a) The BEQ is 200 customers per month, i.e. $3,000 / ($20 - $5) (b) The margin of safety is 300 customers, i.e. 500 - 200 (c) Graph (d) New break-even is 334 customers, i.e. 4,000 / ($17 - $5). This means the BEQ has increased by 67%! (e) Graph. The MOS must be shown on the diagram for maximum marks. (f) Explanation that this was a poor decision because the change in profit = $4,500 - $2,240 = a loss of $2,260 by reducing price.
Q. What is Cash Flow Criteria? Cash Flow Criteria: - Cash flow criteria are on the basis of cash flows rather than accounting profit. Cash flow methods are separated into two s
Define the Explicit cost of capital Explicit cost of retained earnings that involve no future flows to or from firm is minus 100 per cent. This must not tempt one to infer that
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A total of $426,000 seed-funding would be ideal to start the project on a local basis. The cost analysis done above is for the material required to perform the work, and as the wor
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