Seating Company is currently selling 1,400 oversized bean bag chairs a month at a price of $95 per chair. The variable cost of
each chair sold includes $65 to purchase the bean bag chairs from suppliers and a $2 sales commission. Fixed costs are $ 13,000 per month. The company is considering making several operational changes and wants to know how the change will impact its operating income: Prepare the company's current contribution margin income statement. (Use parentheses or a minus sign for an operating loss.)
Black markets are illegal markets that emerge in response to price controls. A few buyers are able to obtain the good at the open-market price; the rest must resort to illegal means. The additional demand is met by underground suppliers selling at much higher prices.
The government does not support the black market or any of their actions with getting items and selling them in other forms. Those who are in demand of a good when they have a hard time in getting it may purchase it illegally at a higher price just so they can receive that good. When there is an exchange of goods in the black market, these items are usually prohibited by the government and therefor illegally being sold.
Yet somehow come out with a hole new wardrobe, new furniture, and a pet snake. This is because of the store's market. They make prices look phenomenal even if they really aren't great. They make the items look like things that you absolutely cannot live with out. Making you basically buy the whole store!
New and improved products, services or technology from entrepreneurs enable new markets to be developed and new wealth to be created. Additionally, increased employment and higher earnings contribute to better national income in the form of higher tax revenue and higher government spending.Entrepreneurs boost economic growth by introducing innovative technologies, products, and services.
