Answer:
a. $120
b. 5,000 units
Explanation:
(a) The formula to compute the contribution margin unit is shown below:
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $200 - $80
= $120
(b) The formula to compute the break even point is shown below:
= (Total annual fixed manufacturing and operating costs) ÷ (Contribution margin per unit)
= $600,000 ÷ $120
= 5,000 units
The individual firm, operating under perfect competition, is characterized as a prize taker.
An individual or business that must accept market prices because it lacks the market share to do so on its own is known as a price-taker. In a market where there is perfect competition, all players in the economy are regarded as price takers. This is valid for both sellers and purchasers in the debt and stock markets as well as producers and consumers of commodities and services. Therefore, option B is the correct choice.
A single buyer or seller does not possess sufficient market power to control the market's price or output. In the firm, there are no obstacles to entering or leaving. Every company and consumers are involved in the market shares.
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Answer:
The one widely used method to make the net present values of Proposal F with a useful life of 6 years and Proposal J with a useful life of 9 years comparable is:
the NPV method.
Explanation:
Used in capital budgeting and investment planning, the Net Present Value (NPV) method discounts project F's and project J's future cash flows to their present values. The NPV method can be used to establish that some projects and investments are more profitable than others. The method can also indicate that the present dollar projected earnings generated by a project or an investment exceed the anticipated present dollar costs.
Answer:
- The quality and design of calculators improved dramatically from 2017 to 2019.
- A new, safe method of memory enhancement became available for purchase.
- As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead of using the copies on reserve in the library.
Explanation:
Remember, regarding the prices for the textbooks the factors of demand applies that is why when prices increase, it might result in an overstating; which means inflation in the cost of going to college.
Also, just as improvements in the memory of calculators involves additional expenses, it results in inflation. Overall, all these circumstances can result in such inflation.