Cyclical deficit is the downfall of the business cycle, this usually occurs when the economy is beneath potential income. The formula for this is, CD= tax rate x ( potential deficit - actual deficit). Therefore, the cyclical deficit is $200. I hope this helps.
Answer:
The equilibrium number of firms is 20.
Explanation:
Q = SH × b
= 2,400 × (1/20)
= 2,400 × 0.05
= 120
Also given, Q = S / n
120 = 2,400 / n
n = 20
Answer:
$23,000
Explanation:
current annual sales = 49,000 packs
Selling price of course packs = $14 each
variable cost per pack = $12
Earnings = $75,000
Contribution:
= current annual sales × (Selling price of course packs - variable cost per pack)
= 49,000 packs × ($14 - $12)
= 49,000 packs × $2
= $98,000
Fixed costs of producing the course packs:
= Contribution - Earnings
= $98,000 - $75,000
= $23,000
Answer:
The company must create brand recognition and open new branches to access greater number of customers.
Explanation:
Ofcourse having a brand recognition means that the company is oriented towards developing its image that plays a vital role in making choices and this is only possible if its products are widely available in the market by openning new branches and offering other branches to present your products. This will lead to access of product to greater amount of public and greater the number of people will choose Magnira's products.
Answer:
profit margin 7.77%
<em><u>Interpretation: </u></em> from evey dollar of sales the firm achieves almost 8 cent of net income
inventory turnover ratio 3.45
<em><u>Interpretation: </u></em>the inventory is sold 3 and a half times during the year
Explanation:
the profit margin is the quotient between net income and sales.
127,500 / 1,640,000 = 7.77%
the inventory turnover wil be the cost of good sold over the average inventory during the year
(312,500 + 257,500)/ 2 = 285,000
982,500 / 285,000 = 3,447368421
