Answer:
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Explanation:
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Answer:
C. The Fed should target the money supply, not the interest rate, and that it should adopt the monetary growth rule.
Answer:
Break-even point= 4,216 units
Explanation:
Giving the following information:
Boland Company sells a product that is priced at $30 per unit. The per-unit contribution margin is equal to 15 percent of the sales price. The fixed cost amount to $71,500 and the company has the desired profit of $36,500.
To calculate the number of units, we need to use the break-even point formula:
Break-even point= (fixed costs + desired profit) / contribution margin
Break-even point= (71,500 + 36,000) / (30*0.85)= 107,500/25.5
Break-even point= 4,216 units
Answer:
MC = $17
P = $25.5
Explanation:
We proceed as follows;
Firstly calculate MC when e = -2, where MR = MC
(P-MC) / P = 1 / IeI
Here P = $34 and e = -2
(34 - MC) / 34= 1/ I-2I
(34 - MC) / 34= 1 / 2
78-2MC = 34
2MC = 34
MC = 34/2
MC = 17
Now, as we have MC, we will calculate the new price when e = -3
(P-MC) / P = 1 / IeI
(P - 17) / P = 1 / I-3I
(P - 17) / P = 1 / 3
3P -51 = P
2P = 51
P = 51/2
P = 25.5
Answer:
c. Economic entity assumption
Explanation:
There are various assumptions and principles out of which few are given below:
1. Expenses recognition principle: According to this, the expenses of a particular year would be recorded on that year itself as the sale is recorded for the particular year
2. Full disclosure principle: According to this, all the important information should be disclosed by the company which can change the decisions of the users of the company
3. Economic entity assumption: According to this, the business activities or record keeping should be separate from its owners, shareholders, etc.
4. Going concern assumption: According to this, the business should be run for a longer time or forever. It will keep the business in running and there is no intention to closed or liquidate it.
In the given situation, the most appropriate option is c.