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Marrrta [24]
4 years ago
13

Spice Inc.'s unit selling price is $60, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000

units. How much will operating income change if sales increase by 8,000 units?a. $175,000 increaseb. $200,000 increasec. $150,000 increased. $150,000 decrease
Business
1 answer:
miv72 [106K]4 years ago
6 0

Answer:

Increase by $200,000

Explanation:

Giving the following information:

Spice Inc.'s unit selling price is $60, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 8,000 units?

Effect on income= (60 - 35)*8,000= $200,000

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Arlecino [84]

<u>Explanation:</u>

Note that<em> call options</em> are simply contracts or tradable assests that gives owners the right to buy the stock at a certain price. While <em>a financial manager</em> is someone task with managing the assets of an investor in a company.

Knowledge of call options will allow the financial manager to sucessfully work with stocks, warrants (recently issued shares of stock), and convertible securities (such as debts been replaced with common stocks).

4 0
4 years ago
Explain way economic deals with allocation and efficient utilization of scarce resources only?
solniwko [45]

Economics deals with the allocation and efficient utilization of scarce resources as human wants are unlimited and resources to satisfy those needs are limited in nature. Hence, to utilize the resources in the optimum possible way and meet the demands of humans, the economy allocates scarce resources.

<h3>How Microeconomics allocates scarce resources?</h3>

Microeconomics analyses how scarce resources are allotted efficaciously to the production of products and services. It facilitates in resolving the critical financial issues of the economic system at an individual level.

Thus, in this manner, Economics deals with the allocation and efficient utilization of scarce resources as human wants are unlimited and resources to satisfy those needs are limited in nature.

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3 0
2 years ago
Phoenix Agency leases office space. On January 3, Phoenix incurs $66,500 to improve the leased office space. These improvements
Ronch [10]

Answer:

$13,300

Explanation:

The cost of improvement should be depreciation over the lower of - remaining lease term or estimated useful life of improvement .

In our case, the lease number of years is shorter than the estimated life of improvement.

So, the cost will be depreciation for 5 years.

Hence, the amount to be recorded for first year:

= cost for improving leased office space ÷ Years remaining on lease

= 66,500 ÷ 5

= $13,300

Therefore, the amount of expense that should be recorded the first year related to the improvements is $13,300.

8 0
3 years ago
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Oliga [24]

Answer:

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Explanation:

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Price taking behavior for a firm means that:
erma4kov [3.2K]

Answer:

d. the firm has no individual effect on the market price.            

Explanation:

Price taker -

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The price taker does not have the capability to alter the market price , because it does not have enough power to do the same .

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Hence, from the given information of the question,  

The correct option is d.

5 0
4 years ago
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