so,nominally,................... (copied by :- @-Venkatesh Rao cheap tricks-)
MUx / MUy = Px / Py is the right answer
Exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.
<h3>What do you mean by exchange rate?</h3>
Exchange rates refer to the value of one's nation's currency over the currency of another nation.
An exchange rate can be fixed or free-floating. A fixed exchange rate is pegged to the value of other currency and a free-floating exchange rate may rise or fall due to changes in the foreign exchange market.
Thus, exchange rates are an effective way to analyze the price of one currency in terms of another currency with the tools of demand and supply.
Learn more about the exchange rate here:
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Answer:
1. 4,350 helmets
Explanation:
1. The computation of the number of helmets is shown below:
= (Total fixed cost + operating income) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $76 - $44
= $32
So, it would be
= ($49,600 + $89,600) ÷ ($32)
= ($139,200) ÷ ($32)
= 4,350 helmets
2. The contribution margin income statement is presented below:
Sales (4,350 × $76) $330,600
Less: Variable cost (4,350 × $44) ($191,400)
Contribution margin $139,200
Less: Total Fixed cost ($49,600)
Operating income $89,600
In a situation where the firm is at point D and an increase the production of bike tires by 300 units, the opportunity cost will be <u>200 truck tires.</u>
When the firm is at point B and decides to increase the production of truck tires by 400 units, in this case, the opportunity cost will be<u> 500 bike tires.</u>
Opportunity cost simply means the potential benefit that an economic entity loses when it engages in another activity.
Learn more about opportunity cost on:
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