Answer:
a. a rightward shift of the demand curve for margarine
Explanation:
If the price of butter increases, consumers would demand less of butter and more of margarine. This would shift the demand curve of margarine to the right and the demand curve of butter to the left.
A substitute good is a good which can be used in place of another good. Substitute goods usually have a more elastic demand because if the price of the good increases, it can be easily substituted with another good.
The phenomenon exhibited by butter and margarine is known as cross price elasticity. It when the change in price of one good leads to a change in the quantity demanded of another good.
Answer:
The credit period is the number of days that a customer is allowed to wait before paying an invoice
Explanation:
This indicates the amount of working capital that a business is willing to invest in its accounts to generate sales
Answer:
Please see answers below
Explanation:
A. For break even point
= fixed expenses - Contribution margin per unit
Where,
Contribution margin per unit = Sales per unit - Variable cost per unit
= $11 - $4
= $7
Therefore,
Break even points in unit = $58,800 ÷ $7
= 8,400 pizzas
B. Target profit
The break even point = Fixed costs expenses + Target profit / Contribution margin per unit
= ($58,800 + $54,000) / $7
= $112,800 / $7
= 16,114 pizzas
C. Margin of safety in dollars
= (Total sales - Break even in sales) * Selling price per unit
= ( 9,900 - 8,400 ) * $11
= 1,500 * $11
= $16,500
D. Contribution margin in lay man's term.
Contribution margin is when a firm makes or produces a product and then sold it, the difference that is left after deducting variable costs(costs associated with the sales like cost of raw materials used in producing the product) from the the sales of such product is the contribution margin.
Answer:
$190,000
Explanation:
Given that,
Total assets for Arrington Inc. = $1,000,000
Common Stock = $470,000
Retained earnings = $340,000
Total Liabilities = Total Assets - Common Stock - Retained earnings
= $1,000,000 - $470,000 - $340,000
= $190,000
Therefore, Arrington's total liabilities in 2016 is $190,000.
Answer:
The correct answer is letter "B": Rider.
Explanation:
A rider policy adds or restricts terms to an already existing insurance policy. This is typically used when the policyholder includes in the original coverage some others such as life, home, and auto insurance. Rider policies are typically low priced and in most cases are offered by the same insurance companies at a special discount to promote consumption among their insured.
