Answer:
it decreases
Explanation:
As a result of the decrease in demand for tacos, the price of tacos would fall, all other things remaining equal.
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. As a result of the fall in price, the producer surplus would decrease.
Assume that price of tacos before the fall in demand is $10
the least price, the seller is willing to sell tacos is $3.
Producer surplus = $10 - $3 = $7
After the fall in demand, price falls to $8
producer surplus becomes = $8 - $3 = $5
We can see that producer surplus fell
Answer:
Lost contribution per unit = $56 per unit
Explanation:
The Division X is operating at less than full capacity, hence it has excess capacity of 600 units i.e (5000- 4,400)
This implies that it can only produce to meet the external and a portion of Division Y demand
Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.
Therefore, the minimum transfer price
minimum transfer price= Variable cost + a lost contribution from internal supply
The lost contribution represent the amount Division X would have made had sold the units to external buyers
Lost contribution per unit = $56 per unit
Answer:
The actual monthly payment is $206.08, which is slightly higher than the value given in the question, therefore, the given statement is not true.
Step by Step Explanation:
We have been given the loan amount as $12,000, term of loan as 6 years and annual interest rate as 7.25%.
Let us first find the monthly payment for this data, and then we can compare it with the given data to answer the given question.
We know that EMI formula is given as 
Upon substituting the given values.

Therefore, the monthly payment is $206.08.
Answer:
The below solution will guide your believe of what should be appropriate qualitative assumptions for inherent risk.
Explanation:
Answer:
So the amount of sales needed will be $144000
Explanation:
We have given selling price per unit =$8
Variable cost per unit = $4.90
Contribution margin per unit = 8-4.90=$3.1
Contribution margin Ratio = 
Fixed costs = $37200
Target profit= $18600
Required Sales amount to earn the desired profit = 
