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If the firm's sales revenue income exceeds its expenses the firm has earned a profit?
If a firm's sales revenue exceeds its expenses, the firm has earned a profit.
When determining how many goods to produce what is the firms goal?
When determining how many goods to produce, a firm's goal is to maximize profit by aligning production levels with market demand. This involves assessing costs, potential sales, and pricing strategies to ensure that the revenue generated from sales exceeds production and operational costs. Additionally, firms aim to optimize resource allocation and maintain a competitive edge while minimizing waste and inefficiencies. Ultimately, the goal is to achieve a balance between supply and demand that supports sustainable growth.
6 What are the advantage and disadvantage of level production schedules in firms with cyclical sales?
The advantage of the level production schedule in firms with cyclical sales is resources and labor are spread evenly. The disadvantage of the level production schedule is that it is a costly exercise.
Why are business sales leads important to the infrastructure of marketing firms?
The generation of sales leads is one of the main activities that marketing firms do in order to bring new clients to the company. Successful sales resulting from leads will increase the revenue of a business.
What is the notion of profit?
Profit is the financial gain made by a business when the revenue generated from sales exceeds the costs of production, operation, and other expenses. It is a key indicator of a company's success and is crucial for sustaining and growing the business over time.
What is a flexible budget?
Definition A set of revenue and expense projections at various production or sales volumes. The cost allowances for each expense are able to vary as sales or production vary.
What is net cost?
sales sales revenue minus net sales revenue
What is revenue maximising theory?
Revenue maximization theory posits that a firm aims to achieve the highest possible sales revenue, often prioritizing sales volume over profit margins. This approach suggests that businesses may lower prices or increase production to boost total revenue, even if it means sacrificing short-term profits. The theory contrasts with profit maximization, where firms focus on maximizing the difference between total revenue and total costs. Revenue maximization is particularly relevant in competitive markets where gaining market share can lead to long-term benefits.
Desribe various ways that knowledge management systems could help firms with sales and marketing or manufacturing and production?
Almost everyone in the production line will become an expert.
Is sales revenue a revenue?
Yes it is.
What is cm ratio mean?
The CM ratio, or Contribution Margin ratio, is a financial metric that measures the percentage of sales revenue that exceeds total variable costs. It is calculated by dividing the contribution margin (sales revenue minus variable costs) by sales revenue. The CM ratio helps businesses understand how much revenue is available to cover fixed costs and contribute to profits after variable costs are accounted for. A higher CM ratio indicates a more profitable product or service.
What is the sales revenue if variable cost is 40000 and fixed cost is 30000 and break sale revenue is 40000?
Sales revenue = breakeven sales + Fixed Cost Sales revenue = 40000 + 30000 sales revenue = 70000 Prove Sales revenue = 70000 Less: V.C = 40000 Contribution Margin = 30000 Less:Fixed Cost = 30000 Profit (loss) = Nill
