Answer:
$1,135,000
Explanation:
Data provided as per the question
Contribution = $1,430,000
Income = $295,000
The calculation of fixed cost is shown below:-
Income = Contribution - Fixed cost
Fixed cost = Contribution - Income
= $1,430,000 - $295,000
= $1,135,000
Therefore, for computing fixed cost we simply deduct Income from contribution.
Answer: Sole Proprietorship
Explanation: This is a form of a business organisation in which one person owns and controls the organisation. Also known as a sole trader, this is not a legal entity. There is no legal separation between the owner and the business itself. The person owns the business and is responsible for the debts incurred in the business. However this also means that the sole trader receives all the profits generated from the organisation.
Hector is thus the sole trader in this question. He will be personally liable for any debts incurred in the business, but he will also solely reap the benefits of the business, such as the profits earned. He can run the business under his own name, or create a fake name. But this will not separate his organisation from him.
Answer:
The Kreidler Kids company has a producer surplus of $500.
Explanation:
Producer surplus can be described or calculated as the amount a producer is willing to supply or sell goods and the actual amount the supplier received.
For this question, the producer surplus can therefore be calculated as follows:
The amount Kreidler Kids company can produce swing sets = $1,000
The amount paid by Kendra for the the swing set = $1,500
Producer surplus = The amount paid by Kendra for the the swing set - The amount Kreidler Kids company can produce swing sets = $1,500 - $1,000 = $500
Therfore, the Kreidler Kids company has a producer surplus of $500.
Answer:
the ability to switch easily.
Explanation:
Product indicators help a company to measure the performance of its product against a defined target. The price sensitivity of product determines a company how much the demand for a certain product will change if there is change in price of that product. This enables the company to compare its product easily and measure the performance of its product as it was expected that whether it meets the criteria or goals of the business. Product indicators of sensitivity to price do not include the ability to switch easily.
