Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase
1 answer:
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Answer:
a) 4.800 units: Operational loss area (L)
12,000: Break even point (BEP)
$1,500,000: BEP
20,000 units: Operational profit area (P). Also, the maximum amount of units.
$2,500,000: Operational profit area (P). Also, the maximum amount of sales.
b) BEP: 12,000 units or $1,500,000 in sales.
Explanation:
The graph is divided in two sections:
1 - The operational loss area (L)
2 - The operational profit area (P)
The interface between both regions is the breakeven point.
a) 4.800 units: Operational loss area (L)
12,000: Break even point (BEP)
$1,500,000: BEP
20,000 units: Operational profit area (P). Also, the maximum amount of units.
$2,500,000: Operational profit area (P). Also, the maximum amount of sales.
b) The breakeven point is where sales equal total cost (or the level at which profits are zero). This breakeven point (BEP) is at 12,000 units:
This corresponds to $1,500,000 in sales.
Answer:
$427,011.92
Explanation:
We use the present value formula i.e to be shown in the attached spreadsheet
Given that,
Future value = $0
Rate of interest = 7.5%
NPER = 15 years
PMT = $45,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
And, in type we write the 1 instead of 0
So, after solving this, the present value is $427,011.92
