Suppose Big Country can produce 80 units of X by using all its resources to produce X or 60 units of Y by devoting all its resources to Y. Comparable figures for Small Nation are 60 units of X and 60 units of Y. Assuming constant costs, Big Country needs to give up

the production of good Y, and stat trading with Small Nation in order to obtain good Y.

Explanation:

Big country's opportunity cost of producing goods X instead of good Y = 60/80 = 0.75 good Y per good X

Big country's opportunity cost of producing goods Y instead of good X = 80/60 = 1.33 good X per good Y

While Small Nation's opportunity cost of producing either good X or good Y = 60/60 = 1

Since Big Country's opportunity cost of producing good Y is higher than Small Nation's opportunity cost, then Big Country should give up the production of good Y, and instead trade with Small Nation to obtain good Y.

Kindly check attached picture

Explanation:

1. Increase unit selling price 20% with no change in costs, expenses, and sales volume.

2. Change the compensation of salespersons from fixed annual salaries totaling $151,650 to total salaries of $60,660 plus a % commission on sales.

Compute the break-even point in dollars for 2020.

Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative

1 Contribution margin for alternative

2 Compute the break-even point in dollars using the contribution margin ratio under each of the alternative courses of action Break-even point for alternative

1 Break-even point for alternative

2 Which course of action do you recommend

Kindly check attached picture for detailed explanation