A producer with only one product has total fixed costs of $15,000 per month. In addition, it cost the producer $100 in variable costs to produce each unit of her product (raw materials and direct labor cost). The producer charges her wholesalers $125 per unit.
a. How many units of the product does the producer have to sell each month in order to break even?
b. The producer has set a target profit of $3,500 per month for this product. How many units must be sold to break even and achieve the $3,500 per month?
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Ответ:
In order to break even, 600 units should be sold.
Also, 740 units have to be sold to break even and achieve the $3,500 per month.
A. First and foremost, we have to calculate the contribution margin per unit and this will be:
= Revenues per unit - Variable costs per unit
= $125 - $100
= $25
Therefore, the break-even units will be:
= Fixed costs / Contribution margin per unit
= $15,000 / $25
= 600 units
Therefore, 600 units have to be sold to breakeven.
B. The units to be sold to attain the target profit will be:
= (Fixed costs + Target profit) / Contribution margin per unit
= ($15,000 + $3,500) / $25
= 740 units
Therefore, 740 units have to be sold.
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Ответ:
The answer is $ 1 billion.
Explanation:
MPC stands for the marginal propensity to consume.
If MPC is 9 it implies that the multiplier is 10 i.e 1/(1-0.9). The rise in aggregate demand is equal to multiplier times change in government expenditures so to boost aggregate demand by 10 billion dollar government has to increase expenditure by Dollar 1 billion.