If the marginal propensity to consume equals 0.9, the simple spending multiplier is

Stuart Corporation produces products that it sells for $17 each. Variable costs per unit are $9, and annual fixed costs are $163

Mila [183]

Answer:

See below

Explanation:

The formula for break even point in unit and dollar is as sewn below;

Break even point in units = Fixed expenses / Contribution margin per unit

Where

Contribution margin per unit = Selling price per unit - Variable expense per unit

Contribution margin per unit = $17 - $9 = $8

But

Fixed expenses = $163,200

Break even point in unit = $163,200 / $8 = 20,400 units

Break even point in dollars = Fixed expense / Profit volume ratio

Where

Profit volume ratio = (Contribution margin per unit / Selling price per unit) × 100

Profit volume ratio = ($8/$17) × 100 = 47.06%

But

Fixed expense = $163,200

Break even point in dollars = $163,200 / 47.06% = $3,468

For desired profit

Sales volume in units = Fixed expense + Desired profit / Contribution margin per unit

= $163,200 + $25,200 / $8

= $188,400/$8

= 23,550 units

Sales volume in dollars = Fixed expenses + Desired profit / Profit volume ratio

= $163,200 + $25,200 / 47.06%

= $4,003

8 0

3 years ago

Do you think the psychologist/consultant is involved in any unethical or illegal behaviors? If you cannot decide, what additiona

emmasim [6.3K]

Answer:

ok look what i think is all people have something that they need to do but if it has to be under the table then yea but what video are you talking about

Explanation:

8 0

3 years ago

A bank might consider all of the following costs and benefits in making a decision as to whether to go? cashless, except:

Dovator [93]

D. The willingness of stores and merchants to accept electronic payments.

Explanation:

Benefits of Cashless transactions:

Lesser crime rate
Less money laundering
Time saving
Easy currency exchange

Factors to be considered by banks for cashless transactions:

availability of technology
convenience
exposure to hackers
exposure to electronic fraud schemes

Option D has nothing to do with banks for considering in making decisions regarding implementation of cashless transactions.

8 0

3 years ago

Select all that apply

joja [24]

Answer:

Preferred stock is advantageous in that it:

(1) has priority over common stock when dividends are declared.

(3) has priority over common stock at liquidation.

Explanation:

2 and 4 are not correct.

(2) in the case of liquidation, priority of payment is made according to seniority ranking. Creditors is ranked higher than preferred shareholders, so they will recieve payments first.

(4) a company is not obligated to pay dividends to shareholders as with interest payment to creditors. So, the creditors would recieve their interest payments first.

7 0

2 years ago

a.)A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could hav

Dafna11 [192]

Answer:

a) Her economic profit is $240,000 per month

b) Per week, the firm:

TVC: $5,000

TFC: $14,250

TC: $19,250

c) Her accounting profit is $300,000

Explanation:

a)

Assume a 30-day per month basis for calculation.

Her revenue for a month = Number of items made per day * 30 * Selling price per unit = 1,000 * 30 * 15 = $450,000

Her explicit cost per month is given at $150,000

Her implicit cost ( opportunity cost) per month = Her salary could be earned if she works elsewhere = Pay rate per hour * Number of hour working per day * 30 = 250 * 8 * 30 = $60,000

=> Her economic profit per month = Her revenue for a month - Her explicit cost per month - Her implicit cost ( opportunity cost) per month = $450,000 - $150,000 - $60,000 = $240,000.

b)

Per week, the firm TVC, TFC and TC is calculated as below:

Weekly TVC = Raw material cost = Raw material cost per unit * Unit produced per one week = 10 * 500 = $5,000;

Weekly TFC = Weekly factory rent + Weekly employee costs = 2,250 + Number of employees hired * Cost of hourly wage * Number of working hours per week = 2,250 + 20 * 15 * 40 = $14,250;

Weekly TC = Weekly TVC + Weekly TFC = 5,000 + 14,250 = $19,250.

c)

Assume a 30-day per month basis for calculation.

Her revenue for a month = Number of items made per day * 30 * Selling price per unit = 1,000 * 30 * 15 = $450,000

Her explicit cost per month is given at $150,000

=> Her accounting profit per month = Her revenue for a month - Her explicit cost per month= $450,000 - $150,000 = $300,000.

3 0

3 years ago