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2 years ago

Producer surplus is

Business

1 answer:

Burka [1]2 years ago

8 0

Answer:

B) the difference between the maximum a person is willing to pay and current market price.

Explanation:

Consumer surplus is difference between maximum price consumer wants to pay and actual price he pays.

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Sue sells authentic Amish quilts on her website. Suppose Sue expects to sell 3 comma 000 quilts during the coming year. Her aver

e-lub [12.9K]

Answer:

(A) 1,200 Margin of Safety_{units}

(B) 330,000 Margin of Safety_{usd}

Explanation:

(A)

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

275 - 150 = 125 CM per unit

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

$\frac{225,000}{125} = 1,800 = Break\: Even\: Point_{units}$

${units \: sold- BEP_{units} = margin \: of \: safety_{units}$

3,000 - 1,800 = 1,200 Margin of Safety_{units}

HOW? we Calculate the contribution per unit. Then the BEP in units and with that the margin of safety in units.

(B)

$\frac{Contribution Margin}{Sales Revenue} = $Contribution Margin Ratio$

125/275 = 0.45454545 = 5/11 CM ratio

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

225,000/(5/11) = 495,000 BEP USD

${current \:sales - BEP_{USD} = margin \: of \: safety$

825,000-495,000 = 330,000 Margin of Safety_{usd}

HOW? we Calculate the contribution ratio by dividing CM over sales. Then the BEP in dollars and with that the margin of safety in dollars.

Important: When posible to avoid rounding errors express as fraction iof posible

(C)

$\frac{current \:sales - BEP_{USD}}{current \:sales} \times 100 = margin \: of \: safety$

$\frac{330,000}{825,000} \times 100 = margin \: of \: safety$

Margin of Safety 40%

8 0

2 years ago

Traditionally, small businesses tended to be concentrated in the ________ industry.

DENIUS [597]

Traditionally, small businesses tended to be concentrated in the retail or retailing industry.

The retail industry involves a business that sells good or services to a consumer. The sell these items based on the demand of the good or service. Even today, the retail industry is growing fast and still one of the main focuses of small businesses.

7 0

3 years ago

Rahm's credit card issuer calculates interest based on the outstanding

Llana [10]

Answer:

Adjusted balance method.

Explanation:

Adjusted balance method is defined a method of calculating financial interest based on the outstanding balance at the end of the last billing period after the payments after all necessary adjustment to the account has been made.

This method of interest calculating leads to a reduced finance charge with time as payments are being made to offset and reduce the balance on the card

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3 years ago

Carlotta has a high need for achievement. she is likely to enroll in an easy math course where she knows she will succeed withou

irina [24]

I would say that Carlotta should enroll in the mid-level math course which is challenging but which she has a good chance of success so that she will be urged to learn something new and yet be capable of doing it successfully,

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3 years ago

Define treasury stock. Why do corporations acquire treasury stock?

Dmitriy789 [7]

Treasury stock, also known as treasury stock or repurchased stock, refers to shares issued prior to being repurchased by shareholders through the issuing company. As a result, the total number of shares outstanding on the open market is reduced.

Companies may use their shares to pay for investments in or acquisitions of competitors. These stocks may also be reissued to existing shareholders to reduce dilution from employee incentive compensation plans.

Stocks consist of shares in which the ownership of a company or business has been divided. One share represents a partial ownership interest in the company over the total number of shares.

Learn more about stock here:brainly.com/question/25818989

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8 0

1 year ago