A Project Has Expected Sales of 6,000 Units, a Selling

question 24

Essay

A project has expected sales of 6,000 units, a selling price of $54 a unit, variable costs equal to 62% of sales, fixed costs of $72,000, and depreciation of $13,500. Assume that total revenues and fixed costs change by 5% in a pessimistic situation. What would the pretax profits be, per year, if the pessimistic situation should occur? Show your computations.

Explain the concept of communication flow in organizations, including its directions, benefits, and disadvantages.

Understand the significance of active listening in effective communication.

Understand the components and calculation of return on investment.

Identify the advantages and judgmental factors involved with financial ratios.

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Definitions:

1980s

A decade characterized by major economic, political, and technological changes around the world, including the acceleration of the digital revolution and the end phase of the Cold War.

Savings Rate

The proportion of disposable income that individuals or households save rather than spend.

Consumption

The use of goods and services by households, constituting one of the primary components of gross domestic product (GDP).

China

A country in East Asia, the world's most populous nation, with a long history, rich culture, and significant economic influence.