Dirth company sells only one product at a regular price of $7.50 per unit. variable expenses are 60% of sales and fixed expenses
are $30,000. management has decided to decrease the selling price to $6.00 in hopes of increasing its volume of sales. what is the contribution margin ratio when the selling price is reduced to $6 per unit?
Barter is an exchange system whereby money isn't used as the medium of exchange but rather, there's a direct exchange of goods or services.
From the question, we are given the information that Italy agrees to buy 5,000 cars from Comfort Cars Inc. in exchange for 5,000 barrels of oil. This shows that a barter system took place.
so near its maturity that it presents insignificant risk of changes in interest rates.
Explanation:
As we know that the cash equivalent i.e .short term and also classified as the highly liquid investment that is always ready to convert into the cash amount i.e. near to its maturity also at the same time it represent the non-significant changes risk with respective to the rate of interest
