Answer:
The contribution margin will decrease by 2.50
Explanation:
IF sales decreases, then the contribution margin decreases.
That's because, there is less money to pay for the variable cost.
The company will also have to sale more units to break even, as now each units contribution is fewer.
Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious
Answer and Explanation:
The computation of the sales tax payable is shown below:
= Total sales × sales tax rate ÷ (100 + sales tax rate)
= $11,880 × 8% ÷ (100 + 8%)
= $880
Now the journal entry is
Cash $11,880
To Sales Revenue $11,000
To Sales Tax Payable $880
(Being the sales tax payable and sales is recorded)
For recording this we debited the cash as it increased the assets and credited the sales revenue and sales tax payable as it also increased the revenue and liabilities
For low levels of output, aggregate supply curves are comparatively flat; for high levels of output, they are comparatively steep.
<h3>What is aggregate supply? </h3>
The total amount of merchandise that businesses will produce and sell is known as aggregate supply, or real GDP. The positive association between price level and real GDP in the short run is demonstrated by the upward-sloping aggregate supply curve, also known as the short run aggregate supply curve.
Price, time, employer remuneration, technical breakthroughs, inflation and deflation, governmental rules, and the availability of resources are some of the variables that influence the aggregate supply curves.
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It's called gross national product.
Answer:
140,000
Explanation:
Jessica manufactures components of products which she is selling to Michael. He claims that components manufactured by Jessica are defective. Jessica is claiming 400,000 for damages from court. There is 50% chance she will win. Based on these assumptions Jessica can get 140,000 value only. Using the decision tree we get,
400,000 * 50% = 200,000
There is 30% contingency fee so Jessica will get 70%
200,000 * 70% = 140,000
