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a. In the short run, the Law of Diminishing Returns applies which states that with the increase in any variable cost e.g. labour or raw materials, and with all fixed costs such as rent, lease payments etc. remaining constant, the output per unit of the variable factor/s will eventually diminish. Thus, clearly only the output per variable factor/s is being measured and therefore, the need to distinguish between the fixed and variable costs.
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Find the demand equation for Good Z in terms of the price for Z (Pz), when Y is $50 and Pw = $6
.a) In a certain, the demand for peach was given as QD = 400 -3P the first day of marketing in 2020, in August 2020, the demand for peach is now given as QD = 600 -3P. From the statement above tell in one sentence the changing in demand is; also tell what your indicator is. Write down any five factors responsible for the particular change in demand observed. Support your answers by sketching the appropriate the equations above on the same graph sheet.
Ques. 1 The Sunrise enterprises, a single product company, provides you the following data for the Month of Sep. 2020.
· Sales (5,000 units @ $20/unit): $100,000
· Contribution Margin per unit: $12
· Total fixed expenses for the month: $18,000
Required: Calculate break-even point( in units and in dollars) and margin of safety( in Percentage, units and Dollars) for Sunrise enterprises using above data. Also draw a CVP graph and show the sales volume representing break-even point and margin of safety on the graph.
#339914 on Dec 2023