Nordstrom sells designer suits made in italy in its stores in the united states. nordstrom is ____ suits. a. importing b. taxing
1 answer:
You might be interested in
Answer:
BEP units: 42,017
BEP dollars: 2,100,850
unit cost at 100,000 units produced: 22.40 dollars
operating profit : 1,656,000
Explanation:
50 - 2.4 = 47.6 contirbution margin per unit
2,000,000/47.6 = 42.016,80 BEP units
BEP units x sales price = BEP dollars
42,017 x 50 = 2,100,850
(B)
fixed cosy/ units produced = fixed cost per unit
2,000,000/ 100,000 = 20 fixed cost per unit
fixed cost + variable cost = total cost
20 + 2.40 = 22.4
(C)
There are 40% units sold at the preferred customer at cost
So we sale at gain only 60% of the units:
100,000 units x 60% x 50 = 3,000,000
100,000 units x 40% x 22.40 = 896,000
Total revenue 3,896,000
Cost: 100,000 x 22.40 <u> (2,240,000) </u>
operating profit 1,656,000
Answer: Her income elasticity of demand for cottage cheese is <em><u>0.3333</u></em> making it a <em><u>normal and necessary</u></em> good.
The income elasticity of demand is given by :
The percentage change in income is given as 60%. We calculate the percentage change in quantity demanded as follows:
Substituting the value above in the income elasticity demand formula we get,
<u>YED = 0.33333</u>
Since the income elasticity is positive, and since Shawna buys more cottage cheese after an increase in income, we can classify this good as a normal good.
Since the income elasticity is between 0 and 1 we can also conclude that cottage cheese is also a essential good or a necessity.