Answer:
$62,100
Explanation:
Given that,
Sales price per unit = $ 40
Variable costs per unit:
Manufacturing = $ 23
Marketing and administrative = $ 8
Total fixed costs:
Manufacturing = $ 76,000
Marketing and administrative = $24,000
Total incremental costs:
= Variable manufacturing + Variable marketing and administrative
= (6,900 × $23) + (6,900 × $8)
= $158,700 + $55,200
= $213,900
Incremental income:
= Incremental revenue - Total incremental costs
= (6,900 × $40) - $213,900
= $276,000 - $213,900
= $62,100
Therefore, the operating income increases by $62,100.
Answer:
Producers
Explanation:
Monopolistic competition is a form of market competition where different producers produce goods that are largely different from each other and can not even been used as a perfect substitute for one another.
This gives each producer the opportunity to decide its prices and output . Prices are always set higher than the marginal costs and the consumer surplus are less compared to a perfectly competitive market , making monopoly competition an imperfect market.
Answer:
The correct answer is (A)
Explanation:
Commercial finance is another way to generate funds, but they come with certain drawbacks compared to commercial banks. Commercial finance usually give loans to customers who are interested in more risky investments. The interest they charge is usually higher which can only be paid if a client invests in riskier investments to earn higher returns.
Answer:
B. equity financing
Explanation:
Equity financing involves giving up part of the company because it will have to be shared with the partners of the organization who are usually the investors.
