Answer:
$57.20
Explanation:
Total unit cost = $19 + $7 + $2 + $4 + $5 + $7 = $44
Target selling price = Total unit cost × (1 + Markup)
Since markup percentage is 30%, or 0.3, we therefore have:
Target selling price = $44 × (1 + 0.3) = $57.20
Therefore, the target selling price is $57.20.
Answer:
- Government legal minimum price $4.50 : Price Floor [Binding]
- Government maximum set price $4.50 : Price Ceiling [Non Binding]
Explanation:
Price Ceiling is the maximum mandated price by the government , at which a commodity can be sold in the market. It is binding if price ceiling is set below the free market equilibrium price level. It is usually set to protect interests of buyers.
Price Floor is the minimum mandated price by the government, at which a commodity can be sold in the market. It is binding if price floor is set above the free market equilibrium price level. It is usually set to protect interest of sellers.
'The government has instituted a <u>legal minimum price</u> of $4.50 per gallon for gasoline' is an example of Price Floor. As floor price 4.50 > equilibrium price 4 , it is binding.
'The government <u>prohibits</u> gas stations from selling gasoline for <u>more than</u> $4.50 per gallon' is an example of Price Ceiling. As price ceil 4.50 > equilibrium price 4 , it is non binding.
<u>Answer:</u> 1. A. Over 60%, 2. D. Common stock , 3. C. About 10%
<u>Explanation:</u>
Financial assets such as the investments of the households which include the deposits, shares, bonds and equity in total are considered as over 60% of total US households.
Real assets are the assets which have a intrinsic value and it has physical appearance such as goods, real estate, land buildings, consumer durable. Common stock is not a physical asset.
Commercial banks consider net worth as 10% of liabilities . Net worth is calculated as asset value minus liability of the bank. Bank's capital can also be called a bank's net worth.
Answer: three times as large
Explanation:
Economic order quantity will be calculated as follows:
EOQ = ✓(2DS/H)
D = Demand in units
Here S = Ordering cost = $10
H = Holding cost
Since S = $10
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 10 × D/ H)
= ✓(20D/H)
Since we're to increase the order cost from $10 per order to $90 per order, then EOQ will be:
Since S = $90
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 90 × D/ H)
= ✓(180D/H)
3✓20DH
The revised EOQ will then be 3 times as large.
