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Katepratt7637
20.03.2020 •
Business
For the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a unit selling price of $380. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize income from operations of $2,405,000.
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Ответ:
128,500 units
Explanation:
The computation of required to realize income from operations is shown below:-
Required sales in (units) = Target contribution margin ÷ contribution margin per unit
= (Fixed cost + target income from operations) ÷ (Selling price per unit - variable cost per unit)
= ($14,300,000 + 2,405,000) ÷ ($380 - $250)
= $16,705,000 ÷ $130
= 128,500 units
Ответ:
Complete Question:
When the first Pizza Hut opened its doors back in 1958, it offered consumers one style of pizza: its Original Thin Crust Pizza. Since its modest beginnings, Pizza Hut has established itself as the leader of the $25 billion pizza industry. Today, Pizza Hut offers six styles of pizza, including Pan Pizza, Stuffed Crust Pizza, and its Hand-Tossed Style. Pizza Hut's strategy of rolling out new pizza offerings over time is consistent with the company competing in what type of market?
Group of answer choices.
a. pure competition
b. monopoly
c. oligopoly
d. monopolistic competition
d. monopolistic competition.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
A monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Some examples of business firms or organizations that engage in a monopolistic competition are restaurants, shoes, clothing lines etc.
Generally, a monopolistic competitive market is characterized by the presence of large numbers of business firms (producers) and a very low entry barrier to other businesses or producers.
In this scenario, the strategy adopted by Pizza Hut's in rolling out new pizza offerings to its customers over time is considered to be consistent or in sync with any company competing in a monopolistic competition because they have a degree of control over price, can make independent decisions and can freely enter or exit the market in the long-run.