Answer:
MOS( in %) = 20%
Explanation:
<em>Margin of safety (MOS) determines the amount by which expected sales exceeds the break-even point (BEP). </em>
MOS can be calculated as follows:
MOS (units) = Budgeted sales - BEP
BEP= Fixed cost for the period / contribution per unit
Contribution per unit = Selling price - variable cost per unit
Contribution per unit = $10 - $5 = $ 5
BEP (units) = 100,000/ 5= 20,000
MOS (in units) = 25,000 - 20,000 = 5000 units
Margin of Safety as a %
(5000/25,000 ) × 100= 20
%
MOS( in %) = 20%
Answer:
A
Explanation:
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.
Elasticity can be described as elastic—or very responsive—unit elastic, or inelastic—not very responsive.
Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.
An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.
Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.
Answer:
(a) Command
Explanation:
A command economy is also known as planned economy and it can be defined as a type of economy in which the government owns and control the means of production.
This ultimately implies that, in a command economy, the government owns the means of production.
Societies that operate a command economy generally practices communism.
Communism is a system of philosophical, political, social organization and economical ideologies that advocates the elimination of private property but a profit-based economy with public ownership of the means of production.
It ultimately aims to ensure each person contributes and receives according to their abilities and needs.
Vietnam, China and Cuba are examples of communist countries that operate a command economy.
In conclusion, a command economy requires that the method of exchange, distribution, as well as the means of production of goods and services and allocation of resources for production should be controlled or regulated by the public (government) rather than the private sector.
