Use the contribution margin ratio to project operating income (or loss) if revenues are $ 520.000 and if they are $ 1.040.000.
1 answer:
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Answer: As the firm produces more of a good, the cost of producing each additional unit increases this implies that the marginal cost of producing a good increases as it makes more of that good.
Explanation: Marginal cost of a producer refers to the addition in total cost when one more unit of a good is produced.
It is given by
Refers to the following situations,
MC increases when adding output increases TC or Total Cost
MC decreases when adding output decreases TC
MC remains constant when adding output does not change TC
The supply curve of the firm is an upward sloping curve, which shows that quantity increases as price increases.
So, in relation to this, it means that MC will also increase as quantity increases.
Answer:
Following are the solution to the given question:
Explanation:
For point a:
Calculating the Real rate of interest:
For point b:
Calculating the Real value of loan repayment:
For point C:
In this question, the creditor receives less than what he granted he losses that's why the creditor is the correct answer.