Answer:
Break-even point (dollars)= $275,000
Explanation:
Giving the following information:
sales $200,000
variable costs $120,000
fixed costs $60,000
desired profit= $50,000
<u>To calculate the sales required to achieve the desired profit, we need to use the break-even point in dollars formula:</u>
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (60,000 + 50,000) / [(200,000 - 120,000)/200,000]
Break-even point (dollars)= 110,000 / 0.4
Break-even point (dollars)= $275,000
Answer:
34,000 units
Explanation:
Given that,
Budgeted sales = 32,000 units
Ending inventory required = 6,000 units
Beginning inventory = 4,000 units
Hence,
Number of units = Budgeted sales + Ending inventory - Beginning inventory
Number of units = 32,000 units + 6,000 units - 4,000 units
Number of units = 34,000 units
Therefore, 34,000 units must be produced to also meet the 6,000 units required in ending inventory.
Answer:
$75,637.5
Explanation:
Sales = $225 million
Growth in sales = 10%
Inventory = $15 + 0.245(Sales)
(sales) S1 = $225,000,000 × 1.10
= $247,500,000
Inventory = $15 + 0.245 ($247.5)
= $15 + 60.6375
= 75.6375
Since this relationship is expressed in thousands of dollars,
Inventory = $75.6375 x $1000
= $75,637.5
Answer:
the European Central Bank (ECB) should engage in a contractionary monetary policy
Explanation:
A contractionary monetary policy takes place when a central bank (or the Fed) reduces the money supply in order to cool down the economy, lower inflation rate or like in this case, wants to offset expansionary fiscal policy.
The central bank initially raises the interest rates and starts selling more securities in order to absorb cash from the markets.
Answer:
Ease of entering
Explanation:
The main difference between perfect competition and monopolistic competition is that firms sell a similar product in perfect competition. In monopolistic competition, firms sell differentiated products.
In both market structures, their many seller and buyers. There is the ease of entry and exit for suppliers. In both markets, there are no dominant suppliers.
