Answer:
4.7
Explanation:
The computation of the degree of operating leverage is presented below:
= Contribution margin ÷ Net income
= $59,690 ÷ $12,700
= 4.7
where,
Contribution margin = Sales - Variable costs
And, the net income would be
= Sales - Variable costs - Fixed costs
The net income is also known as earning before interest and taxes
Answer: 5
Explanation:
The velocity of circulation is the average number of times that each dollar can be used for the purchase of goods and services in a year.
From the information given in the question, the velocity of circulation will be:
= Nominal GDP / Quantity of money
= $2000 / $400
= 5
Therefore, the velocity of circulation is 5.
-Inelastic means that the consumers will still purchase the product at the same rate despite price changes.
-The answer would be cancer medication, because the consumer would still need to buy this regardless of price. Even if it puts them in a financial bind.
-When having your on a car or watch, if the price of that item increases, you could be less likely to buy it.
-When picking out a hamburger at a restaurant, the customer is most likely to by a cheaper burger if they are on a budget.
