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Anarel [89]
2 years ago
10

According to the menu cost theory, firms will be slow in changing their prices because:

Business
1 answer:
Sladkaya [172]2 years ago
6 0

According to the menu cost the firms would be slow to changing prices because .the cost of changing the price might exceed the additional profit the price change would generate.

<h3>What is the menu cost theory?</h3>

This is the theory in the field of economics that helps to ensure the reflection of the effect of the change in price to an establishment.

According to this theory, the the cost of changing the price might exceed the additional profit the price change would generate.

Read more on the menu cost theory here:

brainly.com/question/4953989

#SPJ12

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Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs
Helen [10]

Answer:

The contribution  margin ratio is 35%

Explanation:

The formula for contribution is given below:

Contribution margin = revenue − variable costs.

Contribution margin ratio is given as:

(Sales – variable expenses) ÷ Sales

In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.

Contribution is $7000

contribution margin ratio =$7000/($20*1000)

                                         =0.35  or 35%

The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall

4 0
3 years ago
Scott wants to accumulate $3,800 over a period of 11 years so that a cash payment can be made for roof maintenance on his summer
Kamila [148]

Answer:

$240.76

Explanation:

The formula to determine the annual deposit is :

p = FV / annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

Annuity factor = (1.07^11 - 1) / 0.07 = 15.783599

p = $3800 / 15.783599 = $240.76

3 0
2 years ago
LO 3.3When sales price decreases and all other variables are held constant, the break-even point will ________.
miss Akunina [59]

Answer:

increase

Explanation:

Break-even point is used to determine the minimum number of units a business needs to sell in order to fully cover the fixed costs. The break-even  formula is below;

Break-even = Fixed cost / (Sale price - Variable cost)

If sales price (SP) decreases while keeping other factors; variable cost(VC) and fixed cost(FC) constant, the denominator amount will be smaller, making the break- even point to increase.

3 0
3 years ago
The kitchen workers at Joe's Coffee Shop and Bakery report directly to Sue, the kitchen manager. Sue is a ________ manager.
ryzh [129]

Answer:

line

Explanation:

hope this helps have a nice

5 0
2 years ago
Kermit calculated his total asset turnover to be 1.13. this tells kermit that:
Vikki [24]
Since Kermit calculated his total asset turnover to be 1.13, this tells Kermit that <span>every dollar of assets generates $1.13 in sales.

</span>Please note that it is useful to add the options provided with the question, in order to get an accurate answer and have your question answered quicker.

Hope this helps!!
3 0
3 years ago
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