If a country produces a combination of goods that efficiently uses all of the resources available in the economy then The country is operating on its production possibilities frontier.
The production possibilities frontier is curved which depicts all maximum output possibilities and has combination of goods.
What does "production possibility frontier" refer to?
The graph known as the Production Possibilities Frontier (PPF) illustrates all the possible output combinations of two items that can be created with the resources and technologies currently in use.
Give an example of the production possibilities frontier.
The trade-off between manufacturing one good vs another is gauged by the production possibilities curve. Consider a scenario in which a country produces 120,000 apples and 20,000 oranges. That is the point B on the diagram. It must produce fewer apples if it wants to generate more oranges.
Complete question :
What happens if a country produces a combination of goods that efficiently uses all of the resources available in the economy?
A. The country has eliminated scarcity.
B. The country is operating on its production possibilities frontier.
C. The country is maximizing its opportunity cost.
D. All of the above occur if a country uses all available resources.
Quantity
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Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:
Cost of new equipment and timbers $ 410,000
Working capital required $ 210,000
Annual net cash receipts $ 145,000 *
Cost to construct new roads in year three $ 62,000
Salvage value of equipment in four years $ 87,000
*Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth.
The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 18%.
Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables.
Required:
a. What is the net present value of the proposed mining project?
b. Should the project be accepted?
a. The net present value of the proposed mining project is ($114,456).
b. No. The project should be rejected.
What is the net present value?The net present value is the difference between the present values of the project's cash outflows and the current values of its cash inflows.
Cash flows are discounted to obtain their present values.
When the present values of the cash inflows outweigh the current values of the cash outflows, the project is acceptable based on the NPV technique.
Required rate of return = 18%
Cash Flows PV Factor Present Values
Equipment and Timbers = $410,000 1 ($410,000)
Working capital required $ 210,000 1 (210,000)
New roads in year three $ 62,000 0.609 (37,758)
Annual net cash receipts $ 145,000 2.690 $390,050
Salvage value of
equipment in year 4 $87,000 0.516 44,892
Working capital required $ 210,000 0.516 108,360
Net present value ($114,456)
Thus, since the mining project produced a negative net present value, the project should not be accepted.
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In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County Investment Corporation that the office furniture is included. The contract says nothing about office furniture, but does state, “This document supersedes all oral promises relating to the sale.” Is the furniture part of the sale? Why or why not?
No, the furniture is not the part of sale contract. A contract for the sale of things is one in which the seller sells the buyer the property in the products in exchange for payment.
Between two co-owners, there can be a contract of sale. A selling agreement may be either unconditional or conditional. For instance, Party A consents to sell Party B wheat crops seller. As long as Party B pays the agreed amount, he is permitted to chop the crops and take them. This is a legitimate contract of sale because wheat harvests are regarded as goods. Except for currency and assertible claims, every type of transportable property is a good.
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Service revenues does not include $52000 of services rendered on an account because a collections will not be until 2022 expenses does not include $2,600,000 of expenses on the account because payments will not be made until 2022
$52000 of services rendered on an account and expenses do not include $2,600,000 of expenses on the account is not added account because the company follows a cash-based accounting system.
Who uses cash-based accounting?There are two types of financial reporting: cash accounting and accrual accounting. Cash accounting is used by individuals, small firms, and sole proprietorships to track earnings and outlays when money is exchanged.
With cash basis accounting, revenue is reported as soon as it is actually received, and expenses are reported as soon as they are paid. Accounts payable and receivable are not recognized or tracked in cash accounting.
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Help please I dont get it
Tariffs imposed to importing clothes to protect domestic manufacturers of clothing.
What are the major economic social goals in the USA?All economic systems aim to accomplish a number of overarching social objectives, such as economic effectiveness, equity, freedom, growth, security, and stability. The quality of life for all its residents is influenced by how these goals are prioritized and how well an economy performs in achieving them.The goal of the Federal Reserve is to support a robust American economy. To be more precise, the Fed is in charge of implementing the country's monetary policy in order to achieve the objectives of maximum employment, price stability, and moderate long-term interest rates. Economic stability is the most crucial economic objective. This is so that other macroeconomic goals can be attained, which is made possible by economic stability. Prices may fluctuate if the economy is not stable; this may lead to inflation or deflation, which will affect the currency effect.To more learn about economic social goals in USA refers to:
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Annual starting salaries for college graduates with degrees in business administration are generally expected to be between 30,000 and 40,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. a. What is the planning value for the population standard deviation? b. How large a sample should be taken if the desired margin of error is 400? Round your answers to next whole number.
270?
80 ?
c. Would you recommend trying to obtain the 80 margin of error? Explain.
The planning value for the population standard deviation is 2500 dollars. The size of the samples that have to be taken are:
1503293752No I would not recommend trying to obtain the margin of error of 80 because of its size.
How to solve for the standard deviationThe value for population standard deviation is,
s = maximum - minimum / 4
= 40000 - 30000 / 4
= 10000 / 4
= 2500
The planning value is $2500
confidence level = 95%
the z score from the standard normal table is 1.96
For the margin of error of 400
= (1.96 x 2500 / 400)²
= 12.25²
= 150
At 270
we have
(1.96 x 2500 / 270)²
= 18.15²
= 329
At 80
(1.96 x 2500 / 80)²
= 61.25²
= 3752
c. No I would not recommend the 80 dollar margin of error due to the fact that it is too large and there would be great sampling error due to this fact.
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Which of the following statements is (are) correct regarding a t-account?
a. A T-account will show the debit and credit affects of transactions.
b. A T-account represents a ledger account.
c. A T-account may be used as a tool to visualize the effects of a transaction.
d. A T-account reflects whether a transaction was posted correctly.
The statements that are correct regarding a T-account includes:
A T-account will show the debit or credit side of each transactionA T-account represents a ledger accountA T-account may be used as a tool to visualize the effects of transaction.What is known as T-account in accounting?In accounting, a T-account is an informal term that is used to describe the set of financial records that uses double-entry bookkeeping.
The description of the T-account is that a large letter T is drawn on a page and the title of the account is then entered just above the top horizontal line while the underneath debits are listed on the left and credits are recorded on the right.
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Please anwser asappp
While preparing a bank reconciliation, an accountant notices a check that has
been returned unpaid. This type of transaction should be_________
O A. subtracted from the bank balance
O B. added to the book balance
OC. added to the bank balance
OD. subtracted from the book balance
Answer: A. subtracted from the book balance.
When preparing a bank reconciliation and noticing a check that has been returned unpaid, the transaction should be subtracted from the book balance.
What use does reconciling your financial accounts serve?Bank reconciliations are a vital internal control tool for fraud prevention and detection. They also aid in spotting accounting and banking issues by outlining the differences between the cash balances in the accounting record and the bank balance position as stated in the bank statement.
What are the three ways to reconcile a bank account?The three approaches to a bank reconciliation are:
Statement comparison.balancing the scales.the reconciliation's recording.To know more about bank reconciliation visit:
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What is a talent in the work place talent management
Answer:
Answer follws down here
Explanation:
Talent management seeks to attract, identify, develop, engage, retain and deploy individuals who are considered particularly valuable to an organisation. To be effective, it needs to align with strategic business objectives
I need help!!! offering brain list
business license
hope this helps u, comment questions
2.4.1 Project.pdf - 2.4.1 Project: Creating a Product.
For a project to create a new product to be effective, it is essential that the organization identifies and aligns the characteristics of the product with consumer needs.
What are the steps of creating a product?There are a number of needs for the commercialization of a new product, the first stage of the development of a new product being the planning and concept of the product, followed by the definition of the product and a study that will demonstrate the feasibility in the conception and launch in the market.
The product project must contain the entire development course of action, such as research, schedule, tests, prototypes, approvals and all the necessary course of action for the product to be launched as planned.
Therefore, in order to create a new product, it is essential that the company find a specific niche and meet its particularities and needs discovered through market research, aligning the product and characteristics with potential consumers and their desires.
This is an incomplete question, whose missing statement is as follows:
Think about the type of business you want to create. Will this business offer mainlygood, services, or a combination of both? Here is a list of ideas to get you started:
Restaurant or catering companyCompany that sells specialty goods, such as sporting goods or electronic devices.Service-oriented company, such as dog-walking, web design or tutoring.Find out more about product development on:
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You have been assigned to determine whether more people prefer Coke or Pepsi. Assume that roughly half the population prefers Coke and half prefers Pepsi. How large a sample do you need to take to ensure that you can estimate, with 90% confidence, the proportion of people preferring Coke to within 5% of the actual value? Show all of your work.
Around 364.8 large a sample you need to ensure that you can estimate, with 90% confidence, that the proportion of people preferring Coke to within 5% of the actual value.
Let P = 0.5 be the percent of people who choose coke to pepsi
E = Margin of error = 0.05
The confidence level(ɑ) = 1 - 0.90 = 0.1
[tex]z_{c}[/tex] = 1.91
Calculate n by using following formula,
[tex]n = \frac{P (1-P)*z_{c^{2} } }{E^{2} }[/tex]
[tex]n= \frac{0.5 * (1-0.5)*1.91^{2} }{0.05^{2} }[/tex]
[tex]=\frac{0.9120}{0.0025}[/tex]
[tex]=364.8[/tex]
Hence, a 364.8 large sample you need in order to ensure that you can estimate with 90% confidence, that the proportion of people who prefer Coke to within 5% of the actual value.
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The four functions of management Multiple Choice provide a decision-making framework in order to select new strategies. provide a framework for designing innovative products. are generally considered to be outdated by current management trends. are a step-by-step process that needs to be followed. are not a step-by-step process, but rather these functions occur simultaneously in order to operate an organization.
The four functions of management are : D. a step-by-step process that needs to be followed.
What is management?Management can be defined as the process of effectively managing the day to day operation of a business so as to achieve smoothy running .
The four managemet functions are esssentials orm important for any company or organization that want to succeed based on the fact that this function enables companies to operate smootly.
The four management functions are:
PlanningOrganizingLeadingControllingThis implies that managers needs to plan, organize, lead and control their daily business operation and this management functions should be follow step by step so as to acheive a desire result.
Planning is important for any business that want to succeed as lack of planning can have a negative effect on the growth of a company.
Therefore the correct option is D.
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Emma makes sure she knows all the details about the ethical
dilemma she's facing
by asking questions and talking to other people who are involved.
She is
Emma makes sure she knows all the details about the ethical dilemma. This consists of considering each person who is concerned with the stakeholders.
In philosophy, moral dilemmas, also referred to as ethical paradoxes or ethical dilemmas, are situations in which an agent stands beneath conflicting moral necessities and none of which overrides the alternative. An intently associated definition characterizes moral dilemmas as conditions in which each available desire is wrong.
An ethical situation takes vicinity in a decision-making context in which any of the to-be-had options requires the agent to violate or compromise on their moral standards.
The definition of a predicament is a state of affairs wherein there may be no clean smooth desire or answer. An example of a situation is whilst you only have two greater tickets to an event and three pals that want to move. a controversy necessitating a choice between equally adverse or unpleasant options.
A predicament is a tough situation in which you have to select among two or extra alternatives. He became faced with the quandary of whether or no longer to return.
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Which option can be considered NOT preparing for a financial emergency?
Answer: carrying high balances on credit card
Explanation:
Answer:
a new dress
Explanation:
Which of the following is the best example of clear and concise writing for a résumé?
a.
explored every avenue
b.
last but not least
c.
at this point in time
d.
finally
Every avenue is the correct choice to find the best example of concise and clear writing for a resume. A. is the answer.
To list their qualifications for a position, job applicants must create a formal document called a resume. A personalized cover letter on a resume expresses interest in a particular position or business and draws attention to the resume's most crucial details.
Even today, the purpose of a resume is still to give employers a summary of your relevant qualifications; the spelling of resume is French and means "summary."Contrary to popular belief.
Every avenue is the correct choice to find the best example of concise and clear writing for a resume. There are several different formats, and each one is used to highlight the section of the resume.
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Which of the following is the best example of clear and concise writing for a résumé?
D.) Finally
Hello. I have a question for asenath3968. You published an answer to the question about Puddle Inc. ( Accounting) on 10/11/2021. I am trying to complete my assignment on this topic (this question) and I can't come up with a. The amount (Accounts Receivable) that customers owe Puddle Incorporated at the end of 2022 is $741 million. How did you calculate this amount if the beginning balance was $630.
This was the actual problem:
If Puddle Incorporated had total Accounts Receivable at the end of 2021 of $630 million and an allowance for uncollectible accounts of $17 million show the effect of the following in the accounting equation worksheet for 2022:
Sales on credit of $4,315 million during the year
Collection of accounts receivable of $4,190 million during the year
Write off of uncollectible accounts of $14 million during the year
An increase in the allowance for uncollectible accounts to 3% of total accounts receivable from customers
Required:
a. Calculate how much customers actually owe to Puddle at the end of 2022.
b. Calculate how much is estimated will not be collected by Puddle at the end of 2022.
c. State how much expenses increased due to the estimate of uncollectible accounts.
d. How much would Puddle show as the amount they actually plan to collect (Accounts Receivable, Net)
Answer:
a. Calculate how much customers actually owe to Puddle at the end of 2022.
Why is it important to include a person’s title when developing a reference sheet?
Answer: We have someone to vouch for us. Some jobs will call and ask how their personality (employee) is and how hard working they're. They want someone to vouch for them.
Explanation:
Which tax system would benefit you the most? Explain your response and refer to your specific career.
The tax system that would benefit one the most is a progressive tax.
Taxes assessed under a progressive system are based on the taxable amount of an individual's income. It is like pay as you earn, so high-income earners pay more than low-income earners. The overall outcome is that higher earners pay a higher percentage of taxes and more money in taxes than do lower-income earners.
What is a progressive tax?Progressive tax system is concerned with the taxable amount of an individual's income. The percentage rate increases at intervals as taxable income increases. Each amount the individual earns decides or puts him into a bracket or category, leading to a higher tax rate once the currency amount hits a new threshold.
Therefore, a low income earner will not be taxed beyond his capacity and low income earners will be able to pay whatever tax amount given.
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When the Fed conducts an open market sale of government bonds, what does it want to happen to bank lending as a result?
a. a decrease in bank lending to decrease the money supply
b. an increase in bank lending to increase the money supply
c. an increase in bank lending to decrease the money supply
d. a decrease in bank lending to increase the money supply
When the Fed conducts an open market sale of government bonds, this will cause an increase in bank lending to increase the money supply. Option B
This is further explained below.
What are government bonds?Generally, A financial obligation that is issued by a national government to finance government expenditure is referred to as a government bond, sovereign bond, or simply bond.
In most cases, it entails a promise to reimburse the principal amount on the maturity date and to make what is known as coupon payments, which are interest payments made at regular intervals.
In conclusion, the Federal Reserve performs a sale of government bonds on the open market, this will result in a rise in bank lending, which will result in an increase in the money supply.
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An experience that would be listed in the “Other Experience” category would include _____.
a.
military service
b.
awards earned
c.
leadership opportunities
d.
all of the above
Answer:
c
Explanation:
I think it is all true but I will choose c
Answer:
c. leadership opportunities
Explanation: hope this helps
Whether a business makes a profit or loss is determined by the difference between the total amount of money a business takes in from sales, known as its , and the money needed to operate it, known as
Whether a business makes a profit or loss is determined by the difference between the total amount of money a business takes in, known as its revenue and the money needed to operate it known as its expenses.
What is revenue and expenses?Revenue can be defined as the money a person or an individual makes or money generated from the sales of goods and services.
On the other hand expenses or expenditure can be defined as the money spent after incurring cost or money spent to run a business.
Therefore Whether a business makes a profit or loss is determined by the difference between the total amount of money a business takes in, known as its revenue and the money needed to operate it known as its expenses.
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The primary purpose for any reengineering is to make an organization compliant with changes in its external environment.
Group of answer choices
False
True
Answer:
This statement is false.
Reengineering deals with the radical redesign of existing processes to improve the quality, efficiency, reliability, and productivity of the process. Reengineering focuses on reducing the cost incurred by various processes.
TQM (total quality management) deals with the implementation of incremental changes in an organization.
Does the rule of 70 predict greater increases in the amount of income for poorer countries when both rich and poor countries have the same growth rate?
Yes, the rule of 70 states that when two countries grow at the same rate, the poorer country will have larger increases in income each year.
No, the rule of 70 states that the amount of time it will take a country’s income to double is dependent on its population growth rate, not on its initial level of income.
No, according to the rule of 70, if the growth rate of income is the same in the two countries, then the number of years it will take each country’s income to double is the same.
No, according to the rule of 70, if the growth rate of income is the same in the two countries, then the increase in income will be the same.
No, the rule of 70 states that the amount of time it will take a country’s income to double is dependent on its population growth rate, not on its initial level of income.
In general, the rule of 70 refers to a technique for calculating the number of years it would take for a specific variable to double. It is calculated by dividing 70 by the variable's growth rate.
The rule of 70 is frequently used in economics to calculate the number of years it would take a country's income or gross domestic product (GDP) growth to double. As a result, it can be stated as follows:
Number of years required for income to double = 70 Income growth rate or GDP
As can be seen from the preceding, the rule of 70 does not take into account the initial level of income or GDP.
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The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$5 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 200,000 Paid-in capital in excess of par value, common stock 160,000 Retained earnings 360,000 Total stockholders’ equity $ 720,000 Stockholders’ Equity (December 31) Common stock—$5 par value, 100,000 shares authorized, 47,000 shares issued, 5,000 shares in treasury $ 235,000 Paid-in capital in excess of par value, common stock 209,000 Retained earnings ($60,000 restricted by treasury stock) 400,000 844,000 Less cost of treasury stock (60,000) Total stockholders’ equity $ 784,000 The following transactions and events affected its equity during the year. January 5 Declared a $0.50 per share cash dividend, date of record January 10. March 20 Purchased treasury stock for cash. April 5 Declared a $0.50 per share cash dividend, date of record April 10. July 5 Declared a $0.50 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock’s market value was $12 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $0.50 per share cash dividend, date of record October 10. 3.
What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?
What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.)
How much net income did the company earn this year?
A) The amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend is $28,000.
B) The per-share cost of the treasury stock purchased is $5.
C) The net income that Atticus Group earned this year was $132,800.
What is the net income?The net income is the income before the deduction of dividends.
After deducting dividends from the net income, the difference is the income retained for the year, which is added to the beginning retained earnings to obtain the ending retained earnings balance.
Stockholders’ Equity (January 1)
Common stock—$5 par value, 100,000 shares authorized,
40,000 shares issued and outstanding $ 200,000
Paid-in capital in excess of par value, common stock 160,000
Retained earnings 360,000
Total stockholders’ equity $ 720,000
Stockholders’ Equity (December 31)
Common stock—$5 par value, 100,000 shares authorized,
47,000 shares issued, 5,000 shares in treasury $ 235,000
Paid-in capital in excess of par value, common stock 209,000
Retained earnings ($60,000 restricted by treasury stock) 400,000
Total 844,000
Less cost of treasury stock (60,000)
Total stockholders’ equity $ 784,000
Retained Earnings:January 1 Retained earnings ($360,000)
January 5 Cash Dividend 20,000
April 5 Cash Dividend 14,000
July 5 Cash Dividend 14,000
August 14 Stock Dividend 28,000
October 5 Cash Dividend 16,800
December 31 Balance 400,000
Net income = $132,800
Common Stock Shares:
January 1 = 40,000
Treasury stock (12,000)
Stock dividend 5,600 (20% of 28,000)
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What is the budget of 20.5 trillion
Answer:
The record 20.5 trillion naira ($47.3 billion) proposed expenditure “reflects the serious challenges” faced by Nigeria and contains “key reforms necessary to address them,” Buhari told lawmakers when presenting the budget in the capital city of Abuja on Friday.
19. How many of the following balance sheet items are classified as current?
Retained earnings
Accounts payable
Plant and equipment
Inventory
Common stock
Bonds payable
Accrued wages payable
Accounts receivable
Preferred stock
A. 3 of these items are classified as current
B. 4 of these items are classified as current
C. 5 of these items are classified as current
D. 6 of these items are classified as current
The four of these items are classified as current Inventory, Account receivable, account payable and account wages payable.
What is current assets and liabilities?current assets-1.Inventory
2. Debtor's accounts
The resources that a company owns and can turn into cash during the current accounting period are referred to as current assets. Current assets are used to pay off current liabilities, which has an impact on the entity's liquidity.
Current liabilities-1. Payables account
2. Payable account wages
The short-term debts a company owes to other organizations that are expected to be repaid during the current accounting period are known as current liabilities.
While bonds payable are non-current liabilities, plant and equipment are non-current assets. Equity includes the retained earnings, common stock, and preferred stock.
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Hayley recently invested $50,000 in a public utility stock paying a 3 percent annual dividend. (Hayley's marginal income tax rate is 32 percent.) Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Required: If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in four years if the dividends paid are qualified dividends? What will her investment be worth in four years if the dividends are nonqualified?
If the dividends are unqualified, the investment will be $54,207
Ordinary dividends are classified as qualified and nonqualified. As per tax implications, the difference between qualified and nonqualified dividends is the tax rate at which these dividends are treated. Instead of the favorable rate for qualified, unqualified dividends are taxed at the individual's regular income tax rate. Thus, depending on whether a person got qualified or ordinary dividends, their tax rate will vary regardless of their tax level.
Nonqualified dividends are taxed at the marginal income rate, whereas qualified dividends are taxed at the capital tax rate. Unless one is in the 39.60% tax bracket, capital gains are taxed at 15% unless one is in the 20% tax bracket.
Qualified dividends after-tax return of 2.55% or 3% x (1-.15),
So, 50,000 x (1 + .0255)^4
= $55,298
Qualified dividends = $55,298
Nonqualified dividends after-tax return is 2.04% 3% x (1-.32)
So, 50,000 x (1 + .0204)^4 = $54,207
Nonqualified dividends = $54,207
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what is a start up cost
Answer:
Explanation:
Startup costs are the expenses incurred during the process of creating a new business.
Pre-opening startup costs include a business plan, research expenses, borrowing costs, and expenses for technology.
Post-opening startup costs include advertising, promotion, and employee expenses.
Different types of business structures—like sole proprietorships, partnerships, and corporations—have different startup costs, so be aware of the different costs associated with your new business.
Which land characteristics would increase the value of a residential block?
Select one:
A square block with different tiers
A rectangular block with a steep slope
A coastal block with a steep slope and water views
Land characteristics that would increase the value of a residential block are A coastal block with a steep slope and water views
Residential Blocks are defined as the residences built or to be built inside the Estate for private residential purposes, along with any auxiliary amenities in line with the stated lease, as well as certain Common Areas and Facilities. It refers to land where a person is permitted to build a home under local law.
With the demand for land to construct affordable housing continuing to climb, price hikes are mostly caused by a higher price per acre of residential land. Both a strong housing demand and a more stagnant housing supply contribute to the quick increase in house prices.
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2. The owner of Felt-Tip Pens David Wilson is contemplating adding a new line of Felt-Tip pens, which will require leasing new equipment for a monthly payment of $6,000. Variable costs would be $2 per pen, and pens would retail for $7 each. a. Find the break-even quantity if pens sell for $7 each . (2 points ) b. What would be profit (loss ) be if 1,000 pens are made and sold in a month ? (2 c. How many pens must be sold to realize a profit of $ 4,000 ? (3 points )
The owner of Felt-Tip Pens David Wilson is contemplating adding a new line of Felt-Tip pens, The solution for the three problems are
B.E = 1200 pens There is a loss of one thousand dollars.To make a profit of $4,000, it is necessary to sell 2,000 pens.This is further explained below.
What would the profit be if 1,000 pens are made and sold in a month?Generally, the equation for the Break-even point is mathematically given as
[tex]BE= \frac{FC/}{(SP - VC)}[/tex]
Therefore
[tex]BE= \frac{6000}{(7-2)}[/tex]
B.E = 1200 pens
b)
Generally, the equation for the Profit is mathematically given as
[tex]P = Q * (SP - VC) - FC[/tex]
P= 1000 × (7 - 2) - 6000
P = - 1000
As a result, there is a loss of one thousand dollars.
c)
Considering
[tex]P = Q * (SP - VC) - FC[/tex]
[tex]4000 = Q * (7 - 2) - 6000[/tex]
Q = 2000 pens
To make a profit of $4,000, it is necessary to sell 2,000 pens.
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