Answer:
The overall Sales revenue at break even is $515995.872
Explanation:
The overall break even in dollars or the composite break even point is the Total revenue that a business must earn from all its products that should be equal to the total costs from all its products and there is no profit or no loss.
The formula for composite or overall break even in dollars is,
Break even in dollars = Fixed costs / Weighted average contribution margin ratio
Where the weighted average contribution margin ratio is the weghtage of each product in the overall sales mix multiplied by the contribution margin of each product.
The total sales mix is = 8 + 4 + 1 = 13
Weighted average contribution margin ratio = ((360 - 210) / 360) * 8/13 +
((500 - 300) / 500) * 4/13 + ((1600 - 600) / 1600) * 1/13 = 0.5814 or 58.14%
Break even in dollars = 300000 / 0.5814
Break even in dollars = $515995.872
If there is some discrepancy in the final answer, it will be due to the rounding off of the weighted average contribution margin ratio
Answer:
the value of good increases (goes up)
Answer:
The demand function is p= (-2.1)*q + 15.3
Explanation:
The supply function for honey is p=S(q)=0.4*q+2.8, where p is the price in dollars for an 8-oz container and q is the quantity in barrels. The equilibrium price is $4.80. So, the equilibrium quantity is:
4.80=0.4*q+2.8
Solving:
4.80 - 2.8=0.4*q
2=0.4*q
2÷0.4= q
5=q
The demand function, assuming it is linear, is p=m*q+b
The equilibrium quantity is 5 barrels and the equilibrium price is $4.80; and the demand is 4 barrels when the price is $6.90. So:
Isolating the variable "b" from the first equation, you get:
4.80 - m*5= b
Replacing the previous expression in the second equation you get:
6.90=m*4 + 4.80 - m*5
6.90 - 4.80=m*4 - m*5
2.1= (-1)*m
2.1÷(-1)= m
-2.1=m
Replacing the value of "m" in the expression 4.80 - m*5= b you get:
4.80 - (-2.1)*5= b
Solving you get:
15.3= b
So, <u><em>the demand function is p= (-2.1)*q + 15.3</em></u>
Answer:
E. The FOMC instructs the NY trading desk to sell government bonds on the open market.
Explanation:
FOMC The Federal Open Market Committee is charged under US Laws.
This is controlled through transactions of FOMC,
When Federal Committee (FOMC) purchases bonds from open markets then there is an instant increase in level of reserves in the banking system.
Thereafter, the sale by Federal Committee in the open market tend to decrease the level of reserves in the banking system.
This is directly related to the reserve level.
