Answer: $45000
Explanation:
Firstly, the operating asset will be calculated which will be:
Operating asset = Sales / Turnover
= 900,000/3
Operating assets = $300,000
Then, the net operating income will be: Return on investment × Operating assets
Net operating income = 300,000 × 15%
= 300,000*0.15
= $45,000
Therefore, Legume Division's net operating income last year is $45000
The variable cost is calculated as -
Sales - Variable cost = Contribution Margin
Given, Contribution Margin = 25 %
Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %
25 % of Sales = Contribution Margin = $ 400,000
Sales = $ 400,000 ÷ 25 %
Sales = $ 1,600,000
Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000
Answer:
C. the price paid by buyers increases and the price received by sellers decreases
Explanation:
In the market experiment with taxes, after the excise tax is imposed on the market the price paid by buyers increases and the price received by sellers decreases
If the total cost of his college education is 30,000, he will have enough resources to pay.
Answer:
i. New firms will enter the market
iii. In the long run, all firms will be producing at their efficient scale
Explanation:
In the competitive market barriers to entry will be low as there is no monopoly. The firms in the market are experiencing increased profitability as a result of increased demand so the market will be attractive for new firms. This will result in new firms entering into the market. In the short run.
In the long run as more firms enter the market, the firm's will need to produce at efficient scales because of high competition, with the aim of minimising cost.
