Answer:
a. Contribution margin in percentage is 66.67%
b. Break even point in units is 2500 units
Explanation:
a.
Contribution margin is the value that each product is contributing towards covering the fixed costs of the business. The contribution margin is calculated by deducting Variable cost from the total revenue. The contribution margin ratio is the contribution margin expressed as a percentage of revenue.
Contribution margin percentage = (Contribution margin / Sales) * 100
Contribution margin = Revenue - Variable costs
So Contribution margin ratio = [ (300000 - 100000) / 300000] * 100 = 66.67%
b.
The break even point in units the quantity of units needed to be sold in order for the firm to break even. Break even is the point where Total revenue equals total costs.
Break even in units = Fixed cost / Contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = (300000 / 10000) - (100000 / 10000) = 20
Break even point in units = 50000 / 20 = 2500 units
Answer:
a. the rate at which the Fed lends to banks
Explanation:
The discount rate is the interest rate that are applied for measuring the present value of future cash flows
It is the rate where the federal reserve would lends to the financial insituation or bank
So as per the given options, the option a is correct
And, the other options should be considerd as wrong or incorrect
Answer:
The correct answer is (b) positive economics.
Explanation:
The positive or descriptive economy seeks to explain how the economy works based on reality, that is, empirically. Therefore, try to explain what it was, what it is and what it will be, explaining the consequences of different economic phenomena.
In making a positive economy, economists are considered to act as scientists, moving their moral considerations away from the reality analyzed. Thus, they focus on explaining the cause-effect relationships between facts and economic variables objectively.
The positive economy starts from an economic phenomenon and seeks to find its cause (what was) and its consequences (what will be). This is about establishing a chain of cause-effect relationships between the different economic phenomena, so that the consequences on the reality of any change in the variables studied can be known.
Answer:
Higher GDP reflects higher economic growth of an economy
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. Measures for calculating happiness. so higher GDP doesn't indicate higher happiness
Explanation:
Business Environment
Micro Environnement : it is the internal inside 9f the business
it has full control on the environment
it has lack of vision and mission
Market :it is the outside of the business
it has limited control
Macro: it is the major external outside of the business
it has uncontrollable factors that influence
the decision making
