Answer:
$1.5 million.
Explanation:
Calculation of the amount of the break-even sales for Grace Food Company:
Sales mix calculation will be:
Corn Flakes = $2,000,000/$2,500,000
= 0.80,
Frosted Flakes = $500,000/$2,500,000
= 0.20.
Calculation for the Contribution margin ratio will be:
(60%) × (0.80) + (50%) × (0.20) = 58�lculation for the Break-even point will be:
Break even point= Total Fixed Costs/Overall Contribution margin ratio
Hence,
$870,000/0.58= $1.5 million.
Therefore amount of break even sales will be $1.5 million.
Answer with Explanation:
There are so many factors affecting the demand for a particular commodity. Four of these are: the price of the complements, the income of buyers, changes in trend and advertisements.
1. The price of the complements - Some commodities are complementary with each other, just like cars and gas. If the <em>price of cars decreases</em>, then many people will purchase their own cars, which also follows that <em>the demand for gas will increase.</em>
2. The income of buyers - If the income of a person increases, then he will most likely purchase a particular commodity because he can afford it and has an extra money to purchase goods.
3. Changes in trend - Many people purchase goods because they're on trend. For example, if flare pants are fashionable this year, then the demand for it will increase. Once they're no longer on trend, the demand will drop.
4. Advertisements - The more advertisements a company spends on, the more likely buyers will purchase a specific commodity.
Answer: b - high wages might be profitable because they raise the efficiency of a firm’s workers
Explanation:
The efficiency wage theory suggests that increasing wages increases labour productivity which can increase profitability of the firm.
High wages increases the retention rate of labour and their productivity.
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