The company's break even points in unit sales is 43,000 units.
Above the actual sales volume of 42,000 units is the break-even point.
<h3>What is Break Even point?</h3>
- In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even."
- Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even."
- A graph with a function that represents the fixed costs is also helpful.
- No matter how many units are manufactured, the fixed cost is always 1200, hence the fixed costs function is shown as a horizontal line (FC = 1200).
- Any of the following will raise the break-even point: an increase in the quantity of fixed charges or expenses for the business.
- An increase in variable expenditures and expenses per unit. A drop in the selling prices offered by the company.
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Answer:
see below
Explanation:
The balance in Lucia's account is 1.05 times the original deposit, reflecting addition of 5% interest for the year.
The ticket price is the original price multiplied by (1 + inflation rate). The number of tickets that Lucia can purchase is the account balance divided by the ticket price. The quotient is rounded down to the nearest integer.
The "real interest rate" is the percentage change from the original number of tickets that could be purchased.
Answer: B. an increase in interest rates that decrease economic growth.
Explanation:
If interest rates were to rise in an Economy, that would mean that the cost of borrowing just rose. The rise in the Cost of Borrowing reduces consumer spending as well as business investment. This will therefore lead to a lower Aggregate demand. A lower AD in the Economy usually leads to a decrease in economic growth.
Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.
Based on efficiency, the businesses that should cut hair are the A and C; moreover, to meet the demand, each firm will need to offer at least two haircuts.
The supply of a product or the units of a product that is offered to potential customers should always meet the number of real customers. In the same way, the price of the product should meet the price customers are willing to pay.
In this context, the best is that only firm A and C cut hair, this is because their prices per cut ($25 and $30) match the consumers' willingness to pay this includes Lorenzo ($35), Gilberto ($50), Juanita ($40) and Neha ($25).
- Firm A can cut Neha's and Lorenzo's hair
- Firm C can cut Gilberto's and Juanita's hair
Moreover, this implies each firm needs to do at least 2 haircuts to cover all the possible customers.
In the case of firms B and D, the price per cut is high ($40 - $45). Based on this, they should not cut hair as only a few customers can pay for this service, and this would be inefficient.
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