arget Profit Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income
1 answer:
Answer: $489,000
Explanation:
Amount of sales required = (Fixed cost + Desired operating income ) / Contribution margin ratio
Contribution margin ratio for Cover-to-Cover Company:
= Contribution margin / sales
= 77,800/ 389,000
= 20%
Desired operating income = Current income + income increase
= 58,350 + 20,000
= $78,350
Amount of sales required:
= (19,450 + 78,350) / 20%
= $489,000
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Answer:
Normal goods have a positive relationship with income & purchasing power parity (PPP) with an increase in income ( I ) consumption of normal goods also increased respectively.
So, with the increase in students' income consumption of Pizza will be increased
As normal goods have a positive income elasticity of demand coefficient but it will be less than one.
Explanation:
Let’s discuss the normal goods, as a decrease in the price of normal goods its consumption will boost or increase. As when normal goods become cheaper, they will be consumed much as we know that people will consume them because of the logical reasoning of cheaper than its substitutes. Likewise, with an increase in income, its consumption will also increase but at a stage where it will become inelastic or constant.
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