Answer:
1,875 units.
Explanation:
Break-even is the point where a company neither generate profit not make loss, or we can say that it the sales at which the operating profit will be zero. It can be calculated for sales volume as-well-as dollar sales. Let's prepare a contribution income statement to calculate the break-even sales in quantity. We know that:
EBIT / Operating Profit = (SP * Q) - (VC * Q) - Fixed Cost
where
SP = Selling Price
Q = Quantity / Units
VC = Variable cost
As it is understood that the operating profit at break-even is zero, simply put it in the above contribution income statements along with other figures given in the question.
⇒ 0 = (20 * Q) - (12 * Q) - 15,000
OR 15,000 / (20 - 12) = Q
⇒ Break-even units = Q = 1,875 units.
Answer:
C. leftward shift of the demand curve.
Explanation:
A normal good is a good whose demand increases when income increases and falls when income falls.
The demand curve is represented as downward sloping curve. It slopes downward because the higher the price, the lower the quantity demanded and the lower the price, the higher the quanirty demanded.
A fall in demand is represented by a leftward shift of the demand curve. A rise in demand is represented by a rightward shift of the demand curve.
Factors that leads to a leftward shift of the demand curve:
1. Decrease in income
2. Change in taste - if consumers prefer other products
3. Season
4. Fall in price of substitutes
I hope my answer helps you
Business and economics is basically the study of the production,distribution of resources to provide goods and services
Answer:
B)The cost of energy for a company can be both a fixed cost and a variable cost.
Explanation:
Energy is a fixed cost because it is an utility that companies have to pay regardless of the level of production; they need energy to function.
Energy is a variable cost because energy is an input to production, and the amount of energy used (and hence its cost) can vary a lot depending on how much output is produced. In the question, ethanol is referenced, which is also a type of variable cost, because it is an energy source that depends on another input (corn), and its used as a substitue for gasoline.
Answer:
Medium of exchange
Explanation:
Fresh fish is not an effective form of money. Fresh fish lacks medium of exchange, which makes it ineffective.
