Answer:
Break-even point (dollars)= $9,976.25
Explanation:
Giving the following information:
Fixed costs:
Rent $2,500
Utilities $500
Interest $750
An insurance premium of $200
Advertising on local bus $250 a month
Total= $4,200
A small bucket of take-out chicken, the only menu item, is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 4,200/ [(9.5 - 5.5)/9.5]
Break-even point (dollars)= 4,200/0.421
Break-even point (dollars)= $9,976.25
"Market Failure" can be described as a situation in which the work of prices does not consider the necessity of cost and economic goods.
<u>Explanation:</u>
There is a market failure when the free market in the economy does not increase enough profit and fails the attention of the consumers. "Market Failure" can be described as a situation in which the work of prices does not consider the necessity of cost and economic goods.
Public goods could be one of the major causes of market failure. This occurs when the allotment of the goods and market is not placed properly or initated in the right way.
As there are no standard preferences among the society, the taste of one person does not balance the taste of the other. And this leads to imbalance in the market.
Reoccurring problem because non of the other problems would make sense in this type of situation