Total contribution margin = $3,000, standard models sold at break even=800, deluxe models sold at break even=400, superior models sold at break even=100
<u>Explanation:</u>
1.Using sales mix stated in the fact from Figure to form a package what is the total contribution margin?
total contribution margin =($150 multiply 8) plus ($200 multiply 4) plus ($1,000 multiply 1) = $3,000
2.Refer to Figure, What is the number of standard models sold at break even.
break even units =Fixed cost divide contribution margin per package
= $300,000 divide $3000 =100 package standard models sold at break even=100 package multiply 8 = 800
2.Refer to Figure, What is the number of deluxe models sold at break even.
break even units
=Fixed cost divide contribution margin per package = $300,000 divide $3000
=100 package deluxe models sold at break even = 100 package multiply 4
Answer:25,000 in 12 years = 25,000*(1.09)^12= $70,316
Value of $7,500 deposits in 6 years
Use financial calculator and input these values
N=6
PV=0
PMT=7,500
I=9
Compute FV= 56,425, after this
PV= 56,425
PMT= 15,000
I=9
N=6
Compute FV=$ 207,480
We will have (207,480+ 70,316) = $277,796 in 12 years to start our business.
Explanation:
Answer:
B. Herbania is technologically superior to Duckistan in producing civilian goods.
Explanation:
Duckistan Production Possibilities
A B C D E
Civilian Goods 20 18 14 8 0
Military Goods 0 1 2 3 4
opportunity cost - ¹/₁₈ ¹/₇ ³/₈ 4 civilian goods
opportunity cost 20 18 7 2.7 - military goods
Herbania Production Possibilities
A B C D E
Civilian Goods 40 36 26 14 0
Military Goods 0 1 2 3 4
opportunity cost - ¹/₃₆ ¹/₁₃ ³/₁₄ 4 civilian goods
opportunity cost 40 36 13 4.7 - military goods
Herbania has an absolute advantage in the production of civilian goods. Since it also has a lower opportunity cost of producing civilian goods, therefore, it also has a comparative advantage at producing civilian goods. Assuming that resources are equal in both countries, then we can assume that Herbania is technologically superior in the production of civilian goods.
Dukistan has a lower opportunity cost of producing military goods, therefore, it has a comparative advantage at producing military goods.
Since the company is a mid sized company, with the increase in the price of the inputs of the RAM, the price of the RAM will definitely increase.
<u>Explanation:</u>
1) Since the price of the inputs of a particular good are one of the most important factors which determine the price of the goods, so with the increase in the inputs of the price of the inputs of the good, the price of the good will increase.
2) With the fall in the income of the consumer, the expenditure of the consumer will also decrease. So the demand of the RAM will fall because of two reasons a) increase in the price of RAM and 2) with the fall in the income of the consumer.
