Answer:
Results are below.
Explanation:
<u>First, we need to calculate the unitary variable cost and the fixed costs:</u>
Unitary variable cost= 6 + 12= $18
Total fixed costs= 4,000 + 1,500 + 1,300 + 832
Total fixed costs= $7,632
<u>Now, to calculate the break-even point both in units and dollars, we need to use the following formulas:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 7,632 / (36 - 18)
Break-even point in units= 424 per month
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 7,632 / (18/36)
Break-even point (dollars)= $15,264
Answer:
The correct answer is C.
Explanation:
Supposing that more is preferred to less, Maria would never choose a point where she's below her budget line. That is, Maria will spend all of her rent.
Therefore we can already discard possibilities like:
- A. Because
⇒ $33<$36
The individual is not maximizing utility is she were to choose this bundle.
- B. Because
⇒ $42>$36
This bundle is beyond what Maria can afford.
Further, assuming that Maria has convex preferences, she'll choose a point where she buys more of both goods rather than specializing in the consumption of one of them. That leaves bundle D aside over bundle C because even though both bundles satisfy her budget condition M=$36, bundle C provides more utility to Maria than bundle D for being located in a more centric solution along her budget line.
Answer:
<em>Please see explanation</em>
Explanation:
1. Commitment : A contractual obligation to carry out a transaction at specified terms in the future. Material commitments should be disclosed in the financial statement.
2. Contingent liability: a possible liability stemming from past events, that would be resolved as to the existence and amount by some future event.
3. General risk contingency: An element of the business environment that involves some risk of a future loss. Examples include the risk of accident, strike, price fluctuations, or natural catastrophe. General risk contingencies should not be disclosed in financial statements.
4. Iron curtain approach: An approach to making materiality judgments that quantifies the total likely misstatement as of the current year-end based on the effects of reflecting all misstatements (including projecting misstatements where appropriate) existing in the balance sheet at the end of the current year.
5. Known misstatements: Specific misstatements identified by the auditor during the course of the audit.
6. Likely misstatements: Misstatements identified by the auditor during the course of the audit that are due to either extrapolation from audit evidence or differences in accounting estimates.
7. Loss contingency: A possible loss, stemming from past events that will be resolved as to the existence and amount by some future event.
8. Rollover approach: An element of the business environment that involves some risk of a future loss.
Answer:
a short-run equilibrium but not a long-run equilibrium.
Explanation:
The long run aggregate supply and aggregate demand when intersect they determine the economy level of equilibrium. This will determine real level of GDP and prices in the long run. The short run supply curve is upward sloping. It determines the quantity of the output that will be produced at each level of price in the short run.
Answer:
0.6
Explanation:
Initial Units sold, Q1 = 40 pairs
Initial Price, P1 = $40
Final price, P2 = $20
Final units sold = 60 pairs
Now,
Using the midpoint formula,
the absolute value of the price elasticity of demand
price elasticity of demand = 
or
price elasticity of demand = 
or
price elasticity of demand = 
or
price elasticity of demand = 
price elasticity of demand = 0.6
