Answer and Explanation:
The computation is shown below:
1.
Selling Price = Sales ÷ Units Sold
Current Selling Price = $385,000 ÷ 5500
= $70
Now
Expected Selling Price per unit = $70 + ($70× 10%)
= $77
Now
Expected Sales = 5500 × $77
= $423,500
Now
Net Income = Sales - Variable Cost - Fixed Cost
= $423,500 - $250,000 - $94,000
2.
Sales = $385000
Variable cost = $385,000 × 56% = $215,600
Sales $385,000
Less: variable cost -$215,600
Contribution Margin $169,400
Les: fixed cost -$94,000
Net Income $75,400
As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.
Answer:
B. monopoly firms but not for competitive firms.
Explanation:
Marginal revenue can become negative for monopoly firms but not for competitive firms.
A monopolist’s marginal revenue is always less than or equal to the price of the good.
Marginal revenue is the amount of revenue the firm receives for each additional unit of output. It is the difference between total revenue – price times quantity – at the new level of output and total revenue at the previous output (one unit less).
Since the monopolist’s marginal cost curve lies below its demand curve. When a monopoly increases amount sold, it has two effects on total revenue:
– the output effect: More output is sold, so Q is higher.
– the price effect: To sell more, the price must decrease, so P is lower.
For a competitive firm there is no price effect. The competitive firm can sell all it wants at the given price.
So the marginal revenue on a monopolist's additional unit sold is lower than the price, <u>because it gets less revenue for selling additional units.</u>
<u>Marginal revenue can become negative – that is, the total revenue decreases from one output level to the next.
</u>
Answer:
C) can get started more easily and maneuver faster
Explanation:
A small business (sole proprietorship, partnership, limited liability company) can maneuver much faster than any corporation simply because the owners are the managers of the business. The owners do not have to ask anyone for permission to make any decisions or decide new business activities. Also, last but not least, you are your own boss, and that is priceless.
Small businesses are also much easier to set up and do not require a lot of paperwork and authorizations to start operating.
I am 80% sure that the answer is c. (:
