The variable cost is calculated as -
Sales - Variable cost = Contribution Margin
Given, Contribution Margin = 25 %
Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %
25 % of Sales = Contribution Margin = $ 400,000
Sales = $ 400,000 ÷ 25 %
Sales = $ 1,600,000
Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000
Answer:
The equilibrium price will increase
Explanation:
Equilibrium price is defined as the price at which the quantity demanded and quantity supplied are equal.
At this point there is no excess demand or supply, they are both equal.
I'm the given scenario the new rice diet that is being marketed in the U.S. as a cure for cancer will lead to increase in demand for rice.
While a flood that affects the rice crop in California will reduce the ability of suppliers to supply. Leading to reduced quantities supplied to the market.
This results in increased prices for the now scarce rice in the economy
It is illustrated in the attached diagram where price increases from P1 to P2.
The new equilibrium quantity is Q1
Answer:
We should not lower taxes for the wealthiest Americans because they own and run a lot of companies and businesses that we use. Lower income Americans want their leaders to understand or know what it’s like to be less wealthy so they’ll be more sympathetic towards lower income people and won’t do everything out of the want for more money. If they have to pay lower taxes, then that takes away from their ability to sympathize with lower income homes, and that would upset a lot of people.
Answer:
d. Calculate total revenue minus total expenses
Explanation:
Profit is Calculated as Total revenue minus Total expenses. Therefore, consider all Incomes generated by the Business whether Primary or Secondary. Also consider all Expenses incurred by the business including Non - Operating expenses.
Part of the lands' end business model includes purchasing products and then selling them again without any reprocessing. Lands' end is operating in the reseller market.
This company doesn't use the goods it has bought - it just sells it again to another company so as to get some profit.
