A business produces 5,000 units per month. It spends $12,000 on raw materials. It pays wages of $20,000 . Other costs include $50,000 for rent, paid by the month. In order to break even the selling price per unit will have to be:
a. $25.20
b. $16.4
c. $20.30
d. $28
b
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The value of tax land increases as a result of site value taxation only when _____
a. all governments employ it b. surrounding governments do not employ it c. the supply of land is inelastic d. the demand for housing is strong
The threshold income level originally used to determine official poverty statistics was based on
A) an income three times the amount of money needed to purchase a nutritionally adequate diet. B) standards provided by the United Nations based on studies done in poor countries around the world. C) the highest income of the lowest one-fifth of families in the country. D) a per capita income of $1,000 in 1958 prices.
If the marginal propensity to consume is 0.75, net taxes are fixed at $2,000 and real income rises by $12,000 . by how much will real consumption spending increase?
a. $9,000 b. $8,000 c. $7,500 d. $7,000 e. $10,000
According to Adam Smith, what is the primary source of a nation's wealth?
A. the amount of gold and silver in the government's possession B. a spirit of cooperation in which people share according to their means C. strong central planning authorities D. the people's ability to produce products and trade in free markets