JOBS ARE THE SOURCE OF INCOME
Answer: Decrease, decrease
Explanation: Substitute goods are those goods that are used in place of each other. When the price of a substitute good falls, it becomes more attractive to the consumers. Here, wood planks and wood beams are substitutes to each other. So, when price of wood plank falls, demand for wood beams will decrease, shifting the demand curve to the left. As a result, of this the equilibrium price of wood beams and the quantity of wood beams will also decrease.
Answer:
This question requires us to calculate cash flows from operations and net income. Each of them is calculated as follow.
Cash flows from operations
Cash flow from operation comprises of cash generated or spend on core business related purchase and sale. It will be calculated as follow.
Cash from operations = 25,000 - 100,000 =($ 75,000).
Net income
Net income will be calculated using simple cashflow equation given below.
Closing cash balance = opening cashflow + net income + depreciation + cash flow from operations + cash flow investment + cash flow finance
25,000 = 55,000 + net income + 10,000 - 75,000 - 250,000 + 170,000
Net income = 115,000
Answer:
Break-even point in total units= 951.7units
Explanation:
<em>Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss</em>.
It is calculated using this formula:
<em>Break-even point (in units) = Fixed cost/ average contribution per unit</em>
<em> Blue Plaid</em>
Contribution per unit 43-30 = 13 52-45 = 7
<em>Average contribution per unit </em>
= ( (13× 4) + (7×5) )/9
= $ 9.66 per unit
<em>Break-even point in total units</em>
= $9200/$ 9.66
= 951.7units
Break-even point in total units= 951.7units
40 bars ...............................................................................................
