Answer:
d. a higher price for autos in the United States than in Europe.
Explanation:
As it is mentioned that the price elasticity of demand in more in Europe as compared with the United States that represents a slight increase in price would decline the immense demand in Europe
Plus the elasticity in the united states is not high that reflects that change in price have a less impact on quantity demanded
Therefore the option d is correct
Answer:
the division of $150,000 will be $75000 and $75000.
Explanation:
2) since there is no reference to division of income in the partnership agreement then partnership income will distribute equally
so distribution = 150000/2 = 75000
so, $ 150,000 will be distributed as $75000 and $75000 to Campbell and Jackson.
Answer:
Contribution margin per unit= $21.6
Explanation:
Giving the following information:
Selling price per unit $34
Variable costs per unit:
Direct material $6
Direct manufacturing labor $2.40
Manufacturing overhead $0.80
Selling costs $3.20
<u>The contribution margin is calculated by deducting from the selling price all the variable components:</u>
Contribution margin per unit= selling price - total unitary variable cost
Contribution margin per unit= 34 - 6 - 2.4 - 0.8 - 3.2
Contribution margin per unit= $21.6
Buying an existing business is beneficial because it does not require large initial capital.
Option a
<u>Explanation:
</u>
The idea of buying an existing business is much easier than that of starting a business. Buying an existing business includes lesser risks. When we are buying a business, it means that we are taking over an operation that is already generating some profits or cash flows.
Moreover, it does not need enormous amount of capital since, majority of the setups will already be there and all we have to do is just to reconstruct and maintain it. We cannot be sure that whether the previous business holder had professional financial dealings with the government side so, it sometimes may become our duty to initiate the papers and get financial support from the government if required.
In addition, there are cases in which the lenders that the previous owner dealt with will not be the same as ours. Therefore, the answer would be option a.
