Answer:
Gunst should produce 500 Bio-mutant games:
- total contribution margin = $71 x 500 = $35,500
Explanation:
Android Bio-mutant Cyclops
selling price $100 $107 $125
labor $48 $24 $60
direct materials $9 $8 $16
variable overhead $7 $4 $9
contribution margin $36 $71 $40
labor hours 4 2 5
Bio-mutant generates by far the largest contribution margin and requires the least direct labor hours.
Gunst should produce 500 Bio-mutant games:
- total revenue = $107 x 500 = $53,500
- total contribution margin = $71 x 500 = $35,500
If it produces 250 Android games its total contribution margin will = $9,000
If it produces 200 Cyclops games its total contribution margin will = $8,000
Answer:
Most consumers decide on a product using price as the number one factor
Explanation:
Sale prices could make a market more competitive and it is also a pricing strategy.
If an entrepreneur set the price as high as s/he thinks s/he can it could take her/him out of competition in the market and it would leave her/him without profit.
Small business don't set their prices according to their business size but to the economic factor, because consumers first decide based on the economic factor because people can't buy what they can't afford.
Answer:
By formation of legally binding contract.
Explanation:
Contacts are a good way for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments. Because of the high quality expected in the goods procured, having a legally enforceable contact will make the vendor provide high quality products that meets required specifications.
However when contracts dictate a particular price, so if the market price of input were to go down we will still be obligated to buy at the higher price from the vendor.
Answer:
The answer is: Income statement
Explanation:
As she wants to get information on sales and costs, the Income statement is the statement that she should looking for. With the Balance sheet statement, it only shows information on the financial position reporting the firm's assets, liabilities and owner's equity at a specific point in time rather than the sales and costs firgures during the reporting period.
Furthermore, she should opt for Income statement rather than the common-size income statement because the common-size income statement hardly illustrates any trend during the recent years/ reporting periods, instead, it is only shown each revenue and cost items as percentage of total sales in a specific period.
In the income statement, there should be enough information for the new CFO to find trends on revenues and costs (if any) because the revenue and cost items is detailed enough and at least it should be given the comparision between sales & costs of the reporting period versus the firgures of the previous reporting period.
Answer and Explanation:
Given that
Consumption function C = 200 + 0.9Y
Investment I = 300
Aggregate expenditure AE = C + I
Equilibrium AE = Y
Based on the above information
a. The level of equibrium income is
Y = AE = C + I
Y = 200 + 0.9Y + 300
0.1Y = 500
Y = 5000
b. The value of the investment multiplier is
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.9)
= 10
c. The change in the level of equilibrium income if investment increases by 10 is
Y = 200 + 0.9Y + 310
0.1Y = 510
Y = 5100
Change is
= 5,100 - 5,000
= 100
