Answer:
The Break-even annual sales= $2,222,222.22
Explanation:
<em>The break-even sales is the amount of revenue that a business must generate that would equate its total costs to total revenue. At the break even sales, the contribution is exactly to total iced cost, and the business makes no profit or loss</em>
Contribution margin ratio = (20-5)/20=75%
Break-even (units) = Total general fixed cost /(selling price- variable cost)
= 5,000,000/75%
= $6,666,666.67
The annual sales = $6,666,666.67/3 = $2,222,222.22
The Break-even annual sales= $2,222,222.22
Answer:
put upward pressure on; put downward pressure on
- The actions of U.S. investors to lock in this higher foreign return would PUT UPWARD PRESSURE ON the currency's spot rate and PUT DOWNWARD PRESSURE ON the currency's futures price.
Explanation:
If both the spot and the forward price of a currency are the same, it means that it should be worth the same today than in the future. If you can earn higher interest by investing in that foreign currency, then investors will start purchasing higher amounts of the foreign in order to invest and gain higher rates.
Since the demand for the foreign currency increases, that put upward pressure its current price. Simply more investors will want to invest in that currency. While that happens right now, the market will tend to adjust to correct this arbitrage, and the way this can be adjusted is by lowering the future price of the currency. That puts downward pressure on the forward rate.
The prospect of greater market share and setting themselves apart from the competition is an incentive for firms to innovate and make better products. But no firm possesses a dominant market share in perfect competition. Profit margins are also fixed by demand and supply.
A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.
Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers.
The market structure is the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold.
Hope this helps:)
Answer:
It is not efficiently using all of its resources.
Explanation:
PPC is the graphical representation of product combinations that an economy can produce, given resources & technology.
- Points on PPC reflect the best potential production of economy, by best efficient utilisation of available resources & technology.
- Any point under PPC reflects production under best potential of economy, by inefficient utilisation of resources.
- Points beyond PPC are unattainable, unless growth in either resources/ technology shifts the PPC curve outwards.
