<span>the correct answer is
B) solve your problem directly with the creditor</span>
Answer: 6250
Explanation:
From the question, we are informed that Santiago company incurs annual fixed costs of $66,000. variable costs for santiago's product are $34 per unit, and the sales price is $50 per unit. santiago desires to earn an annual profit of $34,000.
The contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit for thus:
Contribution margin ratio = (Sales price - Variable cost)/Sales price
= (50-34)/50
= 16/50
= 0.32
Sales = (66,000 + 34,000)/0.32
= 100,000/0.32
= 312,500
Sales volume in units will be sales divided by price. This will be:
= 312,500/50
= 6250
When she altered her shopping patterns and buying behavior because of substantial pay raise, it is an example of income effect.
In economics, Income effect explains how their is a <u>change in demand</u> in market caused by of a change in <u>consumer's purchasing power</u> as a result of a <u>change in their real income</u>.
Here, the theory of <u>income effect</u> explains Gall's situation because her increase in pay cut changes her purchasing power, thus, increases her demand for expensive goods.
In conclusion, when she altered her shopping patterns and buying behavior because of substantial pay raise, it is an example of income effect.
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<em>brainly.com/question/22093268</em>
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