An economy that is neither growing nor shrinking is usually said to be in a period of stagnation.
Answer:
E
Explanation:
market penetration means selling exiting products in existing market which is less risky then other methods of development. this is also called aggressive marketing.
Answer:
1- B. Expense will be $140,000 and liability will be $250,000
2- d. $250,000
3- d. $250,000
Explanation:
The expense will be $140,000 which is calculated by year 1 and year 2 percent filled. The calculation is as follows:
Year 2 liability : $1,000,000 * 25% = $250,000
Year 1 liability : $1,000,000 * 11% = $110,000
Year 2 expense = $140,000.
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Answer:
Margin of safety = 2,000 units
Explanation:
Margin of Safety =Total units sold-Break-even point
where Total units sold = 
=14,000 units
Break even point = 
The contribution per unit can be deduced from the contribution margin ratio as follows:
Contribution margin ratio=
=40%
this implies that Contribution Margin=40%*Sales
Given a selling price of $16/unit, contribution per unit = 0.4*$16=$6.40
therefore :
Break even point = 
=12,000 Units
Margin of Safety =Total units sold-Breakeven point= 14,000 units -12,000 units = 2,000 units
