Answer:
Sales will be $353333.33
Explanation:
We have given fixed Cost = $ 38,600
Earning Required = $70,000
Contribution margin ratio = 30 %
Hence Contribution Required= Fixed Cost+Earning Required = $70000+$36000 = $106000
We know that contribution margin ratio is given by
Contribution margin ratio 
Sales = $353333.333
Answer:
b. −1,002.5
Explanation:
economic profit = accounting profit - opportunity costs
- accounting profit = revenue - maintenance and insurance = $96,000 - $30,240 = $65,760
- opportunity costs = the lost salary as a computer programmer + money he could earn by selling the land lot and investing = $48,000 + ($395,000 x 4.75%) = $66,762.50
economic annual profit = $65,760 - $66,762.50 = -$1,002.50
