Answer:
794 composite units.
Explanation:
Calculation to determine the firm's break-even point in composite units
First step
Contribution Margin per Composite Unit:
Youth model $700
($140× sales mix of 5 )
Adult model model $4,365
($485× sales mix of 9)
Recreational model $3,210
( $535 × sales mix of 6 )
Contribution Margin per Composite Unit=8,275
($700+$4,365+$3,210)
Now let determine the Break-even Sales in Composite Units using this formula
Break-even Sales in Composite Units = Total Fixed Costs/Contribution Margin per Composite Unit
Let plug in the formula
Break-even Sales in Composite Units = $6,570,000/$8,275
Break-even Sales in Composite Units = $793.9
Break-even Sales in Composite Units = 794 composite units
Therefore the firm's break-even point in composite units is 794 composite units.
The answer is C. If the future price of a good is expected to rise, that means consumers would want to buy more NOW before the price increases. This causes the immediate demand to rise.
Answer:
The rationale for conducting active policy is the interest of Congress to alter the state of the economy through a deliberate change in established policies.
But in the case of Passive policy, the government permits the status quo.
Active policy relies on the government to enforce it while passive policy does not need the government's interference to work in stabilizing the economy.
Explanation:
The following statements applies passive policy because the economy is expected to stabilize on it's own without the deliberate act of congress influencing it:
- Economic circumstances can change dramatically between the time that an economic downturn begins and the time when policy actions have an effect on the economy.
- Fluctuations in economic output have been less severe since World War II.
The following statements is a rationale for conducting active policy since the government's intervention is required:
- Economists are not very accurate forecasters.
- Increases in government spending generate increases in economic output.
<span>a. not counted as part of the labor force</span>
Answer: Price is $7 when sale is 5000 and $6 when sale is 7,500 units.
Explanation:
George will breakeven when his price is just sufficient to cost the total cost.
If George sells 50% more, then his sales is 7,500 units.
George will breakeven when his price is just sufficient to cost the total cost.
When sales is 5000 units price is $7. When sales is 7,500 units price is $6.
