Answer:
30,154 units
Explanation:
In this question we use the formula of break-even point in unit sales which is shown below:
= (Fixed expenses) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $15 - $8.5
= $6.5
And, fixed cost is $196,000
Now put these values to the above formula
So, the value would equal to
= ($196,000) ÷ ($6.5)
= 30,154 units
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The Right Response is Option C which is Long Term Changes in the Economy.
<h3><u>
Why Did Friedman Argued So?</u></h3>
- The concept of monetarism, which refers to the management of money in the economy, was developed by Milton Friedman. According to Friedman, changes in the money supply can have both long- and short-term consequences.
Friedman suggested that long-term changes in the economy had an impact on consumer behavior. Long-term economic developments have an impact on how consumers behave while making purchases. For instance, if long-term economic trends are favorable, consumer spending will rise; otherwise, it would fall.
Therefore, "long-term changes in the economy" is the right response.
To learn more about Long Term Changes in the Economy. Click the links.
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Correct Question - Milton Friedman argued that consumers are more likely to alter their behavior based on
a) changes in the unemployment rate.
b) short-term changes in the economy.
c) long-term changes in the economy.
d) changes in the inflation rate.