A Biscuit Manufacturer Sells 10 Packets of Biscuits for $50

question 57

Multiple Choice

A biscuit manufacturer sells 10 packets of biscuits for $50.The cost involved in making 10 packets is $15,the cost of transporting 10 packets to the customers is $20,and the fixed costs involved amount to $5.If this information is put into a worksheet,what must one enter in the "To value" field of the Goal Seek dialog box to find the number of packets that need to be sold to make a profit of $200?

• A)$20+$5+$15
• B)$50+$20
• C)$15+$20
• D)$200

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Definitions:

ROE

Return on Equity evaluates a company's profit generation capacity by showing the amount of profit made from the investment of its shareholders.

EPS

Earnings Per Share, a key financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock.

Economic Climate

The overall state of the economic environment, factoring in aspects like growth rates, employment levels, inflation, and consumer spending.

Financial Leverage

Financial leverage refers to the use of debt (borrowed funds) to amplify the potential returns to shareholders. It increases the potential for both gains and losses.