Fixed Costs: 420,000
Variable Costs: 65%
Your BREAK-EVEN Point is: $1,200,000 USD or 600 Units @ $200 Each
The answer that I choose was false
Answer:
a. True
Explanation:
TIE means times interest earned, whose formula is provided below:
Times interest earned=EBIT/interest expense
With the above formula, we can determine the EBIT (earnings before interest and tax)
Depending on the company's cost structure, when the operating costs are added to EBIT, the result would be the company's sales revenue
EBIT=Sales revenue-operating costs
Sales revenue=EBIT+operating costs
Answer:
Option (d) is correct.
Explanation:
Given that,
Elasticity of demand for Good A = −3
Percentage decrease in quantity demanded for Good A = 33%
Elasticity of demand for Good A = Percentage change in quantity demanded for Good A ÷ Percentage change in price of Good A
-3 = - 33 ÷ Percentage change in price of Good A
Percentage change in price of Good A = (-33) ÷ (-3)
= 11%
Therefore, percentage increase in price of good A is 11%.
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