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Answer:
C. Mark has a comparative advantage in writing TV commercials and Krystal has a comparative advantage in writing poems.
Explanation:
Mark has absolute advantage in both as it can outproduce Krystal in both, ppoems and TB commercials
now, referring to comparative advantage:
Mark opportunity cost for TV comm: 12/4 = 3
Krystal opportunity cost for TV comm: 8/2 = 4
It has comparative advantage doing TV comm as it renounce to less poems
Mark opportunity cost for poems: 4/12 = 1/3
Krystal opportunity cost for poems: 2/8 = 1/4
Krystal has a comparative advantajge as it renounce to a quarter of TB commercial per poem while Mark to a third
Answer:
4,000 units
Explanation:
The formula to compute the break even point is shown below:
= (Fixed costs ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
And, the fixed cost is $100,000
Now put these values to the above formula
So, the value would be equal to
So, the break even point would be
= ($100,000) ÷ ($45 - $20)
= $100,000 ÷ $25
= 4,000 units
