Answer:
20 million gallons
Explanation
The market quantity supplied can be found by adding the quanirty supplied of the 5 suppliers.
When price is $1.5, tucker supplies 3 million gallons
3 + 10+2 + 5 + 0 = 20
I hope my answer helps you
Answer:
-$7,621
Explanation:
Calculation to determine the net present value of the machine
Using this formula
Net present value of the machine=(Net cash flow *present value of an annuity at 11%)- Amount invested
Let plug in the formula
Net present value of the machine=($2,800+$26000*2.4437)-$78,000
Net present value of the machine=($28,800*2.4437)-78,000
Net present value of the machine=$70,379-$78,000
Net present value of the machine=-$7,621
Therefore the Net present value of the machine is -$7,621
Answer:
e) $4,651
Explanation:
The break-even point is the level of activity that a company must operate to have its total cost equal to its total revenue. At this level of activity, the business makes a zero profit, as the total contribution is exactly the same as the total fixed cost.
It is important for the business to have an idea of the number of customers or units of product to sell inorder for it to cover its total fixed cost. This is the information the break-point analysis seeks to provide.
Working it out
Break-point in sales = Total General fixed cost/ Contribution margin ratio
Contribution margin ratio (CMR): Contribution is sales less variable costs. And the contribution margin ratio is the proportion of sales that is earned as contribution. The higher the better.
CMR = contribution/sales
Fixed cost = Contribution + net loss
We can now apply all these relationships to the question given:
Fixed cost = 1720 + 280
= 4,000
Contribution margin ratio = 1720/400 = 43%
Break-even sales ($) = 4000/0.43
= $4,651
Answer:
Quantity of oil bought & sold would depend upon relative change i.e increase & decrease in demand & supply respectively.
- ↑Dd = ↓Sy : Qty same
- ↑Dd > ↓Sy : Qty ↑
- ↑Dd < ↓Sy : Qty ↓
Explanation:
Libya is an exporter of Oil to China. It implies china's demand for oil is satisfied by Libya's imports.
Usual markets are at equilibrium when market demand = market supply, demand & supply curves intersect.
Political unrest in Libya decreasing oil production, would decrease supply (exported) of oil to China & sift supply curve leftwards. Simultaneously, increase in China demand for oil would shift the demand curve rightwards. These changes in demand, supply would create excess demand. Excess demand would cause competition among buyers & increase the new equilibrium price.
However, <u>Quantity </u>of oil bought & sold would depend upon relative change , shift in demand & supply. If increase in demand is equal to decrease in supply, the quantity would remain<u> same.</u> If increase in demand is more than decrease in supply, quantity will <u>increase</u>. If increase in demand is less than decrease in supply, the quantity will <u>decrease.</u>
