Answer:
$224,000
Explanation:
Contribution margin = Selling price - Variable cost
= $320 - $76.8
= $243.2
Contribution margin ratio = Contribution margin / Sales
= $243.2 / $320
= $0.76 × 100
= 76%
Break even point = Fixed cost / Contribution margin ratio
= $170,240 / 76%
= $224,000
Answer:
Preservation of value.
Explanation:
Money is a medium of exchange that is generally acceptable for transactional purposes.
As seen in the scenario , money may not necessarily be cash as some other items can be used as a medium of exchange in a trade by barter agreement so far the items has the features of money and acceptable.
However , one thing that could be pointed out in the transaction in the scenario is a loss of value of the purple fabrics before the transaction could take place as a result of sudden arrival of a trade ship that caused a surplus in the fabrics , and at the end , it could not achieve as much as was expected.
Therefore the need for the preservation of value of money is necessary and needed
