Answer:
B. There is an increase in income and "spring shoes" are a normal good.
Explanation:
To eliminate the disequilibrium in the market for shoes, spring shoes firstly needs to be seen as a normal product because if it is seen an inferior product then as people's Income rises they woudnt want to buy inferior products because they have the income to buy normal products. As people income rises, since spring shoes is seen as a normal product, then people will buy springshoes
Answer:
$214,500
Explanation:
For the computation of the amount of contribution margin first we need to follow some steps which are shown below:
No of units sold = Total sales ÷ selling price per unit
= $374,400 ÷ $24
= $156,00
Variable cost = No of units sold × Variable cost per unit
Variable cost = $15,600 × $13
=$202,800
Contribution margin = Sales - Variable cost
= $374,400 - $202,800
= $171,600
CM ratio = Contribution margin ÷ Sales
= $171,600 ÷ $374,400
= 0.46
Contribution margin = CM ratio × Sales Contribution margin
= 0.46 × (1.25 × $374,400)
= $214,500
Answer: product line
<span>A group of products which are closely related, under a single brand which satisfies same needs, are used together and are sold to the same group of customers, distributed through the same company is called product line. </span>
