Deficit and our failure to budget and work together as a nation to agree on compromise
Answer:
True
Explanation:
Data provided in the question:
Purchasing cost of the machine = $21,000
Income generated = $2,000
Annual net cash flows from the machine = $3,500
Now,
The Payback period = [ Purchasing cost ] ÷ [ Annual net cash flows ]
or
Payback period = $21,000 ÷ $3,500
or
Payback period = 6 years
Since,
the calculated payback period and the mentioned payback period in the question are equal
Hence,
the given statement is true
Answer: Decrease in the quantity demanded.
Explanation:
According to the law of demand, other things remains constant, if there is increase in the price of a commodity as a result the quantity demanded for that commodity decreases.
In this case, McDonalds increases the price of its hamburgers, so as a result the quantity demanded for the hamburgers decreases. This is due to the higher prices as it will be more expensive for the consumer to buy hamburgers at the prevailing prices.
Explanation:
Breakeven=fixed cost/selling price - variable cost
so 14,300000/380-250
14,300000/130 = 110,000 units to be able to make break even
