What is earning interest on interest"? Compound interest. Savings. Accounting Rate of Return. Investing. Applicable budgets for a retailer are unlikely to include: labour budget. overhead budget. raw materials budget. inventory purchase budget. Healthy Ltd has two product lines: Basic and Premium. Business costs have been divided roughly into their variable and fixed elements. The business is considering whether to drop one of the product lines. The following financial information about each of the product line has been provided: Basic line Premium line Total Sales revenue $100,000 $80,000 $180,000 Less Cost of goods sold ($20,000) ($32,000) ($52,000) Less Other variable costs ($10,000) ($12,000) ($22,000) Contribution Margin $70,000 $36,000 $106,000 Less Avoidable fixed costs ($25,000) ($6,000) ($31,000) Less Unavoidable fixed costs ($5,000) ($20,000) ($25,000) Profit $40,000 $10,000 $50,000 Question: If the business drops Basic product line, what will happen to total profit? Total profit will reduce by $65,000. Total profit will reduce by $30,000. Total profit will reduce by $40,000. Total profit will reduce by $45,000. Splitz Limited has a variable cost ratio of 40%, fixed costs of $400,000, and desires to earn a target profit of $200,000. Total sales revenue required to achieve Spritz Limited's desired target profit is: $1,000,000. $980,000. $1,500,000. $1,260,000