Are there any answer options? I know the answer if you have options
Answer:
D. The breakeven point decreases.
Explanation:
Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.
The formula for break-even is
Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)
Since sales price and variable cost is constant, let's say
(Sales price per unit- Variable cost per unit)= constant (k)
So when we cross-multiply in the formula
Breakeven* k= Total fixed cost
It shows that Breakeven point is directly proportional to Total fixed cost.
So a reduction in Total fixed cost will result in a reduction in Breakeven point.
Answer:
The marginal propensity to save is 0.4
Explanation:
The marginal propensity to save is 1 - marginal propensity to consume.
The marginal propensity to consume is the proportion of an increase in income that the consumers will spend from this increased income and the marginal propensity to save is the proportion of the increase in income that will be saved.
The marginal propensity to consume (MPC) = Change in consumption / change in income
The MPC = (2100 - 1500) / (3000 - 2000) = 0.6
Thus, the marginal propensity to save is 1 - 0.6 = 0.4
Answer:
Option (C)
Explanation:
Guaranteed insurability rider is a person who is responsible to sell extra life insurances to the owners who already have life insurance. They visit the clients and attract them to buy a new one. Similarity, the rider usually charge premiums, but if an owner of life insurance is ill or seriously injured only then no additional premium is charged.
Answer:
preferred stockholders received $15,000 during the first 3 years
- $2,000 in the first year
- $6,000 in the second year
- $7,000 in the third year
common shareholders received $25,000 in dividends during the third year.
Explanation:
preferred stock = 1,000 shares x $100 par value x 5% = $5,000
common stock = 10,000 shares at $10 par value
dividends declared and paid during the first 3 years:
year dividends
1 $2,000
2 $6,000
3 $32,000
preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.
- $2,000 in the first year
- $6,000 in the second year
- $7,000 in the third year
common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.
