Answer:
The selling price is $99
Explanation:
The selling price of the product can be computed by adding required profit margin to the unit cost of the product.The required profit margin is the 10% return on invested assets.
Total variable cost $59*10000 =$590,000
Fixed expenses ($180,000+$60,000) =$240,000
desired profit margin(10%*$600,000) =$60,000
Total sales revenue =$990,0000
price per unit=$990,000/10000=$99
The cost-plus approach to product pricing gives $99
Answer:
6.9%
Explanation:
The May be life insurance corporation is trying to sell an investment policy
This policy will pay $33,000 per year forever
A sales associate mention that the policy would cost $478,000
Therefore, the interest rate at which it will be a fair deal can be calculated as follows
Interest rate= Annual inflows/present value
= 33,000/478,000
= 0.0690×100
= 6.9%
Hence the interest rate at which it would be a fair deal is 6.9%
Answer: A.Freight in
B.purchase return and allowance
C.purchase
D.sales discount
Explanation: A.Freight in the transportation cost associated with the delivery of a goods from the supplier to the receiving end.
B.purchase return and allowance. This occurs when a purchaser and inventory back to the seller.
C.purchase. This is the good and services bought by a company.
D.sales discount. A sales discount is usually offer for prompt payment. Is an incentive sellers offer for early payment.
Answer:
Proportional Tax
Explanation:
A proportional tax imposes the same flat rate (in %) on income as payable tax.
Other types of taxes are Progressive and Regressive Tax. In progressive, the higher you earn, the higher tax you pay while in Regressive, the higher you earn, the lower income tax paid and vice versa.
Answer:
b. small percentage changes in the price will lead to much larger percentage changes in the quantity demanded.
Explanation:
Price elasticity of demand is a measure of how responsive is quantity demanded to change in price. Its formula is given by:
= 
= % Change in Quantity Demanded / % Change in Price
So when absolute value is greater than 1, a x percentage change in price will lead to larger than x percentage change in quantity demanded.
<u>Note</u>: Whether the percentage change in quantity demanded will be just a little or very much larger than percentage change in price will depend on how much is larger than 1. But b is the still the best answer among the options.
