Answer:
The company's CM ratio: 0.5
Its break-even point in units: 14,300 units and in dollars: $286,000
Explanation:
Variable expense per unit = Variable expenses/ number of units = $128,000/12,800 = $10
The contribution margin ratio is calculated by using following formula:
Contribution margin ratio = (Sales - Total Variable cost)/Sales = ($256,000 - $128,000)/$256,000 = 0.5
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = $143,000/($20 - $10) = 14,300 units
Break-even point in dollars = 14,300 units x Selling price per unit = 14,300 x $20 = $286,000
Answer:
C) The demand curve facing each restaurant owner becomes more elastic.
Explanation:
Evidently, the competition increases when a new player enters the market. By entering the market with a new, specialized restaurant, the demand curve of each restaurant becomes more elastic. That is because consumers have more restaurants to compare the price, so they can go for the most convenient. When that happens, the demand is more sensitive to price change.
Answer:
a.$520,000
Explanation:
Amount($)
Sales for the year 500,000
Opening accounts receivable 100,000
Closing accounts receivable <u> (80,000)</u>
Cash received from customers <u> 520,000</u>
Cash received from customers to be reported on the cash flow statement using the direct method is $520,000.
Cash flow statements are usually stated using the direct method or indirect method.
Answer:
Total needed= $2,700,000
Explanation:
Giving the following information:
The deficit for the first year of retirement, 10 years from now, is $90,000. He expects to be in retirement for 30 years and believes he can earn a 7% after-tax annual return on invested dollars. Inflation is expected to average 4% annually over this same period.
Real rate= 7 - 4= 3%
Total needed= 90,000*30= 2,700,000
Answer:
a. Do nothing at all.
Explanation:
Since, the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovation in the high-tech industry, a policy goal of the government shall be to leave it alone.
The government has four potential policy paths to pursue when faced with a monopoly or powerful oligopoly