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ANEK [815]
2 years ago
8

A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold f

or $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?
Business
1 answer:
Lelechka [254]2 years ago
3 0

Answer:

To break even the company must sell

Explanation:

The position at which the company is at no profit and loss position then it is said that the company is at breakeven position.

Break-even position can be found from the following position:

Breakeven position = Fixed cost /  contribution per unit

The fixed cost here is initial investment which is $9900 and the contribution can be found by taking the difference between selling price per unit and variable cost per unit. The contribution per unit is $0.55 per unit ($1.2 - $0.65). By putting values in the above equation we have:

Breakeven position = $9900 / $0.55 per unit = 18000 Units

So 18000 units are required to sell to reach at a no profit no loss position.

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Easy money policy is _____.
Hoochie [10]

Answer:

Easy money policy is <em>monetary policy that increases money supply.</em>

Explanation:

This is usually done through reducing the interest rates by the central bank.

Easy money policy is implemented by the central bank of a country when it wants to increase money flow into the banks.

This policy when implemented leads to an increase in economic growth.

After a short time of implementation, there is experienced an increase in the value of securities.

3 0
3 years ago
The natural state of a market where network effects are present is for there to be intense competition between several rivals th
bixtya [17]

Answer:

False

Explanation:

The reason is that the network effect increases the value driven from a product when the users of the product grows. So the intense competition will come to equilibrium when the network effect is lower because the user needs are lower and the value required is also lower. So the market will be competing on prices to increase the demand of their product.

6 0
3 years ago
Lee and gayle have agreed during a telephone conversation that gayle can leave her furniture with lee while gayle is looking for
Svetllana [295]
A form of verbal contract. There is an agreement between Lee and Gayle; there is an offer, an acceptance of offer and consideration.
6 0
2 years ago
Read 2 more answers
Eddie was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Eddie perceived price as _____
Inessa [10]

Answer:

Here answer to the first fill in the blank is money paid and answer for the second fill in the blank is overall sacrifice.

Explanation:

Here Eddie has perceived price as money paid for the purchase of his favorite beverage, he is ready to drive 30 miles for this beverage , just because he is saving a dollar on it, so from the Eddie's point view , driving 30 miles to get the beverage is worth it . But as per the most of the customers , Eddie is making an overall sacrifice by driving 30 miles to get the beverage , just because he is saving dollar on it, so from the most customers point of view , driving 30 miles is not worth it and a lot of sacrifice is being made.

7 0
3 years ago
A customer purchases 8M of City of Los Angeles 4% G.O.'s, maturing in 2038 at 95. The interest payment dates are Jan 1st and Jul
Temka [501]

Answer:

The amount customers are expected to pay $7600 per bond

Explanation:

8M implies that the municipal bond has  $8000 as its par value.

The amount a customer would is 95% of the par value

Hence, customers are expected to pay $7600 (95%*$8000)

For instance a 5M at 105 means that the par value of the bond is $5000 but issued at 105%, which translates into $5250 without considering commissions as well as the accrued interest on the bond which might also be factored into the price.

6 0
2 years ago
Read 2 more answers
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