Answer:
It increases by 50 units.
Explanation:
Current break even point = 
Here, fixed cost = $4,500
Contribution per unit = Selling price - Variable Cost = $20 - $10 = $10
Current break even point = 
If variable cost increase by 10% then revised variable cost = $10 + 10% = $11
Contribution per unit = $20 - $11 = $9 per unit
Break even sales in units = 
Difference in original and revised break even = Revised - Original = 500 - 450 units = 50 units,
Thus original break even increases by 50 units, = 50/450 = 11.11% increase.
Final Answer
It increases by 50 units.
Answer:
4. Available investments
Explanation:
To enable me estimate my available investments, I need my bank statements, credit statements and record of cash expenses
Answer:
Confront theories predictions with evidence
Explanation:
To test economic theories, economists would observe real behavior and test it with data from the real world. Which would in turn provide evidence based on what is being tested. Confronting theories predictions with evidence is a pointer to the fact that economic theories are verifiable and their validity can be tested.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
<u>Martha:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
<u>Stewart:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Answer:
I believe that the answer would be true
Explanation:
