If there is no unity in a shared system, then diversity can become chaos.
Answer:
The correct answer is letter "C": decrease equilibrium price and increase equilibrium quantity
.
Explanation:
An increase in the number of sellers in a market of a certain good implies the quantity demanded for that good will increase, thus the equilibrium quantity will be higher. According to the demand law, if the quantity demanded goes up, the price is likely to decrease, so, the equilibrium price will be lower.
Thus, <em>the increase in sellers will raise the equilibrium quantity decreasing the equilibrium price.</em>
Given:
Selling price = 6.99
Cost = 4
The dollar markup is computed by deducting the cost from the selling price.
6.99 - 4 = 2.99 is the dollar mark-up based on cost.
2.99/4 = 0.7475 x 100% = 74.75% is the percentage mark-up based on cost.
Answer: True
Explanation:
Cost-volume-profit analysis is refered to as the predictive tool that can be used for the determination of the profit consequences of the price changes, future cost changes, price and the volume of the activity changes.
It requires the management to classify all the costs as either fixed cost or variable cost with respect to production or sales volume within the relevant range of operations.
Answer:
18.24
Explanation:
Sustainable growth rate is the rate of growth a company can afford in the long term
sustainable growth rate = retention rate x ROE
b = retention rate. It is the portion of earnings that is not paid out as dividends
Retention rate = 1 - payout ratio =
payout ratio = dividend / net income
retention rate = 1 - $44,640 / 72,000 = 0.38
Return on equity = net income / average total equity
= 72,000 / 150,000 = 0.48
g = 0.48 x 0.38 = 18.24%
