Selling price = $4.50
Copies sold = $1 million
Fixed costs = $1 million
Unit variable costs = $0.50 per magazine
Sales = $4,500,000
Fixed costs = $1 million
Variable costs = $500,000
Revenue = Sales - fixed costs - variable costs
Revenue = $4,500,000 - $1,000,000 - $500,000
Revenue = $3,000,000
Answer:
Ending stockholders' equity $ 68.000
Explanation:
The net income for the year is Revenue - Expenses
so $ 113,000 - $34,000 = Net Income $ 79,000
Stockholders Equity at end of year
Opening stockholders' equity $ 52,000
Add: Net income for the year $ 79,000
Less: Dividends Paid <u>$ (63,000)</u>
Ending stockholders' equity $ 68,000
-Inelastic means that the consumers will still purchase the product at the same rate despite price changes.
-The answer would be cancer medication, because the consumer would still need to buy this regardless of price. Even if it puts them in a financial bind.
-When having your on a car or watch, if the price of that item increases, you could be less likely to buy it.
-When picking out a hamburger at a restaurant, the customer is most likely to by a cheaper burger if they are on a budget.
Answer:
1) The government prohibits gas stations from selling gasoline for more than $3.40 per gallon.
This statement is an example of price ceiling as the gas stations cannot raise their price above $3.40 but can sell it at any price lower than the ceiling price of $3.40. This is binding
2) Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so. This is neither a price ceiling or floor as government isn't directly affecting the price with their policy
3) The government has instituted a legal minimum price of $3.40 per gallon for gasoline. This is an example of price floor and is binding. The reason it is a price floor is because the petrol stations cannot charge a price below $3.40 but can charge any price above the floor price of $3.40
Explanation:
