Answer:
200 standard scooters and 600 standard scooters
Explanation:
The computation of the each type of scooter to break even is shown below:
As we know that
Contribution margin per unit = Selling price per unit - variable cost per unit
So for standard scooter, it is
= $55 - $30
= $25
And, for chrome scooter, it is
= $70 - $40
= $30
Plus, it is given that the ratio between standard scooter and chrome scooter = 1 : 3
Now the weighted average contribution margin per unit is
= $25 × 1 ÷ 4 + $30 × 3 ÷ 4
= $6.25 + $22.50
= $28.75
So,
Break even units = Fixed costs ÷ weighted average contribution margin per unit
= $23,000 ÷ $28.75
= 800 units
So for standard scooter, it is
= 800 × 1 ÷ 4
= 200 standard scooters
And for chrome scooter, it is
= 800 × 3 ÷ 4
= 600 chrome scooters
Answer:
C. That the more society values a particular profession, the more the people in that profession will make.
Explanation:
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:
The profit will decrease.
Explanation:
For example, if the company increases the value of the product to its customers and incurs a cost of $200 per unit in doing so while it increases the selling price by $150. This implies that its profit will decrease by $50 because anytime the cost is more than the selling price of a product, there is a reduction in the profit margin. However, this remains true in the short-run. However, in the long-run, when customers start appreciating the increased value of the product, demand for the product may skyrocket, leading to an increase in price. By this time, the company will recover more cost and even report a higher profit margin.