Answer:
$6896551.7
Explanation:
Given the following :
Product R:
Selling price = $20
Variable cost = $6
Product S:
Selling price = $50
Variable cost = $30
Firm's fixed cost = $4, 000,000
Break-even point dollars = (Fixed cost /Contribution margin ratio)
Contribution margin : selling price - variable cost
Product R: $(20 - 6) = $14
Contribution margin ratio = ($14/$20) * 60% = 0.42
Product S: $(50 - 30) = $20
Contribution margin ratio = ($20/$50) * 40% = 0.16
Sum of contribution margin ratio for both products = (0.42 + 0.16) = 0.58
Break-even point dollars = (Fixed cost /sum of Contribution margin ratio)
= $4,000,000/0.58
= $6896551.7
Answer:
The correct answer is A) Lend support to the invisible hand by maintaining property rights and political stability
.
Explanation:
The absence of the government in legislative tasks related to the market is, therefore, one of the main bases of the economic theory developed by Adam Smith throughout his bibliographical work. For Smith, the leaders must deal with other areas of control more focused on defense or justice, leaving the market to its free operation.
The invisible hand presupposes that there is an inertia by which the market and its self-regulation leads individuals to make the best decisions for the majority of the population to achieve well-being. In other words, it is a kind of automatic control mechanism that compensates the actions taken as a whole, regulating social conformations.
Therefore, it is assumed that the self-regulation facilitated to the markets helps to achieve an optimal market. To do this, individuals must behave in such a way that they can act without state mediation and in pursuit of their own interest.
The metaphor of the invisible hand also supposes that individuals are encouraged or held back to produce or not to follow the level of prices that exist in the market. Prices and profits are sufficient indicative to know when to participate in the market or not. Basically, if there is profit in a market niche, this supposes a stimulus for production, while losses lead individuals to quit.
Answer:
In order to find the dividend 8 years from now we will use the formula D*(1+R)^N
Right now
D= 1.84
R=1.65%
N= 8
1.84*(1.0165)^8
=2.097
The dividend 8 years from now will be $2.097.
Explanation:
Answer:
Book value= $51,875
Explanation:
Giving the following information:
Purchase price= $80,000
Salvage value= $5,000
Useful life= 8 years
<u>First, we need to calculate the annual depreciation under the straight-line method:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (80,000 - 5,000) / 8
Annual depreciation= $9,375
<u>Now, we can determine the book value at the end of 2019:</u>
Book value= purchase price - accumulated depreciation
Book value= 80,000 - (9,375*3)
Book value= $51,875
A person may choose to rent instead of buying a property as they can't afford a down payment
