Answer:
c. 21,645
Explanation:
The computation of number of fans required to meet the company's goal is shown below:
= (Fixed cost+ target profit) ÷ (Contribution margin per unit)
= ($222,640 + $470,000) ÷ ($32)
= ($692,640) ÷ ($32)
= $21,645
The contribution margin per unit = Selling price per unit - Variable expense per unit
Therefore, the number of fans equal to $21,645
We calculated by above formula.
Answer:
$363,500
Explanation:
Gross profit = Revenue - Cost of Goods Sold.
In the case
Revenue = $578,000.
The Cost of Goods Sold: COGS
Inventory turn over = COGS/ Average turnover
Average turnover = Opening stock + closing stock/2
In this case Opening stock + Closing stock = $110,000
Average turnover = $110,000 /2 =$55,000
Therefore:
3.9 = COGS/$55,000
COGS = $55,000 x 3.9
COGS =$214,500
Gross profit = $578,000 - $214,500
Gross profit = $363,500
Answer:
c.Rents occur at the beginning of each period of an annuity due.
Explanation:
First, know the difference between Ordinary annuity and Annuity due.
In Ordinary annuity, recurring payments occur at the end of the payment period; for example at the end of every month, end of ever year , end of every quarter etc.
On the other hand, in the case of Annuity due, the recurring payments occur at the beginning of the period like at the beginning of the month, beginning of the year;Jan 1st, or beginning of every quarter
In the case of rent, tenants pay rent at the beginning of each month making this type of payment an Annuity Due.
Answer: Macro
Explanation:
This is a macro distinction as the producers of soybean in America are concerned about the crop grown in South America as it will affect the overall price level of soybean in America. When the weather in South America is favorable and the crop produce is large, the supply curve for soybean will shift to the left driving down the overall price level of soybean in America.
Thus, because the concern here is about the overall produce and overall price level it is a macro distinction.
Answer:
The answer to this question is b. Yours will be positive and your roommate's would be negative.
Explanation:
Income elasticity of demand is the degree of responsiveness of demand to changes in income. In other words, it measures how changes in income of consumers will affect the quantity of commodities demanded by such consumers.
An income elasticity of demand can be positive or negative.
It is positive, when an increase in income leads to an increase in the quantity demanded by the customer. However it is referred to as negative when an increase in income leads to decrease in the quantity demanded by the consumer.
In the question above, it can be seen that the increase in income of the first person brought about increase in the commodity demanded thereby making his income elasticity of demand positive. one the other hand, the increase in the income of his roommate, brought about decrease in his demand which translate to the fact that his income elasticity of demand would be negative.
Hence the answer given.
