Compare H2Oh!’s sales growth rate with the firm’s maximum sustainable growth rate (which you just calculated in (b). Will the firm be able to support its growth through internally generated funds?

Financial problems on contribution, breakeven, and sustainable

When comparing H2Oh!’s sales growth rate with its maximum sustainable growth rate, it is clear that the former is significantly higher than the latter. The firm cannot sustain its current growth rate with only internally generated funds and must look to other funding sources to fund future expansion.

However, there is a number of strategies to help you overcome this problem. Firstly, cost-cutting measures can be implemented so as reduce overall expenses allowing more money be reinvested into company’s operations. Secondly, debt financing can also employed if necessary – although care should taken when taking on such liabilities due potential long-term implications associated with them.

Another option is to issue new shares or equity in order to raise the additional capital required for growth initiatives. Even though this option may lower existing shareholder values (as a result of additional shares), it allows the firm to access new funds without assuming too many risks.

Overall then, while H2Oh!’s current sales growth rate much higher than what its internal resources able support – by exploring various options available company may still able achieve desired outcomes within acceptable levels of risk