Answer:
1. $50 and 40%
2. 177 units and $22,125
3. 473 units and 72.77%
Explanation:
Price = $125
Variable cost = $75
Fixed cost =$8,850
Contribution margin is the net of sales price and variable cost of the product. It is the cost available to recover the fixed cost and make profit afterward.
1. Contribution margin = Sales price - Variable cost = $125 - $75 = $50
Contribution margin ratio = Contribution margin / Sale price = $50 / $125 = 40%
Break-even is the level of sales at which business has no profit no loss situation.
2. Break-even point = Fixed cost / Contribution margin per unit = $8,850 / $50 = 177 units
Break-even in $ = 177 units x $125 = $22,125
Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.
3. Margin of Safety = Total sales - Break-even point = 650 units - 177 units = 473 units
Margin of safety to sales = ( Margin of safety / Total sales ) = ( 473 units / 650 units ) x 100 = 72.77%
The partnership most likely formed is a general partnership.
<h3>What is a general partnership?</h3>
A general partnership is when two or more people come together to form a business. The people who come together to create the business are referred to as partners.
In a general partnership, all the partners are responsible for the running the company. All the partners have an unlimited liability.
To learn more about partnerships, please check: brainly.com/question/9909227
Answer:
Ethics refers to the correct rules of conduct necessary when carrying out research. We have a moral responsibility to protect research participants from harm. The purpose of these codes of conduct is to protect research participants, the reputation of psychology, and psychologists themselves.
Explanation:
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Answer:
$213,400 and zero
Explanation:
The computation is shown below:
Cost of the land would be
= Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $189,000 + $16,400 + $2,200 + $3,400 + $2,400
= $213,400
Since the property is purchase for building site construction so no cost would be recorded in the cost of the new building
Answer:
We should start by assuming that before the technological break through is made, the tofu industry is at equilibrium. The new technology will result in the production costs of tofu decreasing, which will shift the supply curve to the right. At first, production costs of just the innovative firm will decrease, but eventually other firms will catch up with the new technology. In the short run, the innovative firm will be able to make an economic profit since the industry will not have reached equilibrium. But after a while, as more firms adopt the new technology, equilibrium will be reached and economic profit will disappear (halting the rightward shift).
If the government grants a patent to the innovative firm that developed the new technology, then a monopoly might result. This is something similar to monopolies resulting from patents in the pharmaceutical industry. The profits of this specific company will increase, resulting in economic profit. Governments hand out patents as a way to reward innovation and encourage it. Imagine if patents didn't exist, how many companies would invest billions in R&D if they know that their competition will use that research for free?
When patents are granted, prices increase, and consumer surplus decreases.
