This trade is possible because each country has comparative advantage in different goods.
What is International trade ?International trade is the exchange of capital, goods, and services across international borders or territories because goods or services are required or desired. In most countries, such trade accounts for a significant portion of GDP.
When compared to domestic trade, international trade is a more complex process. Currency, government policies, the economy, the judicial system, laws, and markets all have an impact on trade between two or more states.
Some international economic organisations, such as the World Trade Organization, were formed in the modern era to facilitate and justify the process of trade between countries of varying economic standing. These organisations work to facilitate and expand international trade.
Intergovernmental and supranational statistical services, as well as governmental statistical agencies, publish official statistics on international trade.
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which statement accurately depicts how volatile exchange rates affect the international capital market? multiple choice question. volatile exchange rates create uncertainty which might act as a brake on the growth of the international capital market. volatile exchange rates foster growth and prosperity within the international capital market. volatile exchange rates have no effect on the international capital market because it is smaller than the domestic market.
This statement accurately depicts the effects volatile exchange rates create uncertainty which might act as a brake on the growth of the international capital market.
Volatile change rates make international trade and funding decisions extra hard because volatility will increase exchange fee danger. alternate price danger. refers back to the potential to lose cash due to a exchange inside the trade price.
Trade charge volatility refers to the tendency for overseas foreign money to comprehend or depreciate in value and in the long run impacts the profitability of a exchange (or switch) remote places.
Forex fluctuations are a natural outcome of floating alternate rates, that's the norm for maximum foremost economies. numerous elements affect alternate prices, which includes a rustic's monetary performance, the outlook for inflation, interest fee differentials, capital flows and so on.
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a form of real estate financing that gives the lender rights to the equity through increased payments or part of the residual value over the balance of the loan?
Participating debt financing: At the time the loan is funded, the lender can have participatory rights to equity through increased income or residual value over the loan's balance.
In addition to designing a loan with an agreed-upon interest rate, the lender takes a percentage of the equity operating cash flow from the proceeds of the sale or refinance. By receiving a percentage of the potential future cash flow, the lender can increase his returns significantly.
What are the four sorts of obligation funding?Lender loan A bank loan is a common form of debt financing.Issues of bonds Bond sales are yet another form of debt financing.Loans to the family and credit cards Getting a loan from family and friends or borrowing money with a credit card are two additional ways to finance your debt.Learn more about debt financing here:
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a lumber mill is capable of producing 10,000 board feet of lumber per day if run for ten hours with minimal breaks. over the past year, forestry legislation has reduced the availability of raw materials, so the mill has produced an average of 4,575 board feet per day. what is the design capacity of the plant? what is the utilization of the plant? if the mill usually operates at 80%, what is the effective capacity?
The design capacity of the plant is 10000, utilization is 45.75% and effective capacity is 8000.
The capacity of the lumber mill to produce boards per day = 10000 boards
Boards produced after reduction in raw material = 4575 boards
The design capacity of the plant is the maximum service capacity or output rate which is 10000 boards per day
Utilization = Boards produced after reduction/ Capacity to produce boards
= (4575/10000)*100 = 45.75%
Effective capacity: The maximum quantity of work that a company may accomplish within a specific time frame under the conditions of quality issues, delays, material handling, etc.
Effective capacity at 80% is: 80% of 10000 = 8000
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a firm has a general-purpose machine, which has a book value of $300,000 and is worth $500,000 in the market. if the tax rate is 21 percent, what is t
The opportunity cost is $458,000.
Write a note on opportunity cost.The opportunity cost is a concept used in microeconomic theory to describe the value or benefit lost by choosing one activity over another.. Simply put, it indicates that by choosing one course of action (such making an investment), you are forgoing the chance to choose an other course of action. The best activity is the one that, after deducting opportunity costs, has the highest return when compared to all other activities.
Taxable capital gain = Market value - Book value
Taxable capital gain = 500,000 - 300, 000 = 200, 000
The taxable capital gain is $200,000.
Next, we compute the opportunity cost.
Opportunity cost = Market value - Taxable capital gain x Tax rate
Opportunity cost = 500, 000 - 200, 000 × 0.21
Opportunity cost = 500, 000 - 42, 000
= 458, 000
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The complete question is given below :
A firm has a general-purpose machine, which has a book value of $300,000 and is worth $500,000 in the market. If the tax rate is 21 percent, what is the opportunity cost of using the machine in a project?
due to a recession, expected inflation this year is only 2.75%. however, the inflation rate in year 2 and thereafter is expected to be constant at some level above 2.75%. assume that the expectations theory holds and the real risk-free rate (r*) is 1.5%. if the yield on 3-year treasury bonds equals the 1-year yield plus 1.0%, what inflation rate is expected after year 1? round your answer to two decimal places.
The inflation rate in year 2 and thereafter is expected to be constant at some level above 2.75%.
Yield on 1 year trasury bond: r1=4.25+3.5 = 7.75%
Now, yield is r3 = 7.75+1.5 = 8.25%
r3=r*+inf
8.25=3.5+inf
inf=4.75%
4.75 = (4.25+i+i)/3
14.25 = 4.25 +2i
2i = 10
i = 5%
Inflation expected after year 1 is 5%
The computation of the inflation rate is expected after Year 1 is shown below:-
the Yield on year 1 treasury bond
Let us assume the inflation rate be I
r1 = risk free rate + Inflation rate
= 2.5% + 2.25%
= 5.75%
r3 = r1 + 0.50%
= 5.75% + 1.50%
= 7.25%
Now,
r3 = risk free rate + IP3
= 7.25% = 2.5% + IP3
IP3 = 4.75%
Year 1 Inflation = 4.75%
Year 2 Inflation = I
Year 3 Inflation = 2
So, inflation rate is expected after Year 1 = (3.25% + I + I) ÷ 3 = 4.75%
(3.25% + I + I) = 14.25%
2(I) = 11%
I = 5.5%
answer is 5.5%
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zscaler started as an original equipment manufacturing firm (oem) for brand-name mobile device companies. later, it started offering a lineup of innovative and high-performance smartphones by acquiring buildit, a san francisco-based design firm. this strategic move of zscaler is known as
The strategic move of Zscaler is known as Forward Vertical Integration.
Forward Vertical Integration technique is a kind of business strategy in which a company takes charge or takes under control all the factors and all the stages which are present in the supply chain in creating its product. This strategy improves the business of the products of company by providing them a bigger market and distribution channel for the selling of their products. It increases profits as well as the efficiency within a company. Also, by using this strategy the delays which occur in distribution of the products get reduced to a large extent. There is also a decline in the transportation cost of the products in this strategy. Examples include Opening own retail shops at different locations in order to increase the product distribution.
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brand-switching studies can be invaluable to brand managers because longitudinal studies that show changes in market shares between several brands can be misleading. true false
f the main body of the purse requires four major sequenced steps, then based on the following information, what is the critical path time? process a: 14 minutes process b: 2 minutes process c: 6 minutes process d: 11 minutes
Answer: 33 Minutes
Explanation: 14 + 2 + 6 + 11 = 33
If the purse's primary body calls for four sequentially important measures. Consequently, based on the information provided, the critical path time is [tex]33[/tex] minutes.
What does critical path time mean?The longest series of tasks that must be completed by a certain date in order for the project to be considered successful is known as a critical path in project management. The rest of the project will be delayed if crucial activities take longer than expected.
The critical path technique enables one to evaluate the effects of work delays. Project completion time will be compromised if tasks on the critical path are delayed.
[tex]14 + 2 + 6 + 11 = 33[/tex]
Therefore, the critical path time is [tex]33[/tex] minutes.
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how can trainee appraisers be assured that the duties assigned by supervisor appraisers will enhance their understanding and progression of knowledge and experience in all applicable valuation methodologies and approaches to value?
A new requirement for both trainee and supervisory appraisers is to take a course covering the expectations and responsibilities of appraisers in these roles.
The appraisal methodology denotes the method of calculating an asset's value based on elements including its cost, the revenue it generates, and its fair market value (FMW) in comparison to other assets of a similar nature. The final assessment value is essentially an educated guess that tries to predict the cost of an asset in a free market. Despite the fact that appraisals are frequently carried out in conjunction with a sale of an item, they can also be done for insurance or taxation reasons.
The appraisal method is employed to establish the value of high-value assets including real estate, works of art, jewels, cars, financial interests in oil reserves, and other non-traditional assets.
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programs through which congress provides money to state and local governments on the condition that the funds be employed for purposes defined by the federal government are called
Grants-in-aid was the program through which congress provides money to state and local governments on the condition that the funds be employed for purposes defined by the federal government.
What is a Grants-in-aid ?A government grant is money provided to assist a certain project or activity. In addition to private individuals, recipients include state, local, and municipal governments. Federal aid contributions are financed by income tax collections. Since these are grants rather than loans, there is no need to repay them; instead, funds must be used in accordance with the guidelines established by the federal government for that particular award.
With the help of a federal grant, the government can publicly fund a project while maintaining its independence from the state. Standards and conditions are attached to the money.
University faculty members may be given grants-in-aid to pursue a certain area of research, but there are limitations on how the funds may be utilized.
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computers, inc. has name brand all-in-one printers that print, copy, scan, and fax on sale at a 35% markdown. the price includes free shipping and handling. tommy woodruff purchased a printer for $97.49. what is this printer's regular selling price?
Tommy Woodruff bought a printer for $97.49. The suggested retail price for this printer is $150.
The selling price is the amount that a customer will pay, whereas the cost of the item is the price at which the store purchased it. Due to market circumstances, the price of this item is greater than the factory cost price.
To find the cost price, divide the total cost by the number of units purchased. Use the selling price formula to get the final cost.
Due to the printer's 35% market-down price.
Tommy Woodruff paid 65% of the cost for a printer.
65% x = 97.49 where x is regular selling price
65 ÷ 100 x = 97.49
x = 97.49 ÷ 65 × 100
x = 150
The regular selling price is $150.
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after a life insurance policy has been in force for 5 years the insured dies. during the claims process, the insurer discovers that the insured did not disclose material health information that had it known, would have caused the application to be rejected. what can the insurer do at this point in time?
The only thing the insurance company can do at this time pays the policy's death benefit to the designated beneficiary.
Is the beneficiary of a policy paid when the insured passes away?The selected beneficiary will get the death benefit when the policy owner passes away, thanks to the life insurance company. If no nominated beneficiary is present, the death benefit will be given to the deceased's estate. Normally, the death benefit is handed out within 30 days of receiving death certificate documentation.
Who is the beneficiary of a life insurance policy's death benefit?Although you can theoretically select anybody or any organization as a beneficiary, the beneficiaries of a life insurance death benefit are typically your partner, children, or other close family members. You will specify how much of the death benefit each beneficiary should get when naming more than one beneficiary.
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A _____ is a set of unique features of a company and its products that are perceived by the people or companies the organization wishes to serve as significant and superior to those of the competition.
A competitive advantage is a set of unique features of a company and its products that are perceived by the people or companies the organization wishes to serve as significant and superior to those of the competition.
What exactly is a competitive advantage?If a company have something that gives it an edge over its competitors that eventually helps it attract more customers and grows its market share, then it is a competitive advantage to the company.
There are three primary forms of a competitive advantage, namely (1) cost advantage, (2) offer advantage, and (3) niche advantage.
Cost advantage means providing a service or producing a product at a lower cost than competitors.Offer advantage means a company's product or service stands out from the competitors by meeting a unique customer need.Niche advantage means designing a product or service that attracts a specific audience.Find out more about competitive advantage here: https://brainly.com/question/26514848
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______ is the change in total utility that results from the consumption of one more unit of a product.
The marginal utility is the difference in a consumer's overall utility caused by consuming one more unit.
How Does Marginal Utility Work?Marginal utility describes the additional enjoyment a consumer receives from having one more unit of a good or service. The concept of marginal utility is used by economists to predict how much of a good consumers would purchase.
The pleasure a consumer experiences from each additional unit of consumption is known as marginal utility. It determines the utility after the initial product is consumed. The marginal utility is the benefit you receive from buying a second bottle of water after first purchasing one.
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kyle, whose spouse died in december 2019, filed a joint tax return for 2019. he did not remarry but has continued to maintain his home in which his two dependent children live. what is kyle's filing status in 2022? a.head of household b.single c.married filing separately d.surviving spouse
Kyle's filling status in 2022 is option A. Head of household. A filing status for individual United States taxpayers is called as a Head of household.
Head of household status generally can be described as a preferential tax rates and also larger standard deduction for single people caring for qualifying dependents. At the end of the year to use the Head of Household filing status taxpayer must be unmarried or considered unmarried. In the other side, head of household status also can be applied by unmarried or a qualified dependent living with you more than half the year or a parent for whom you cover half of housing costs.
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you are repaying a debt you borrowed, by depositing $500 at the end of each month for n months. the interest rate is 12% per year. what is the interest that is paid as part of the a) nth $500 payment? b) (n - 3)th $500 payment?
You deposit $500 at the end of each month for n months in order to pay back a debt you borrowed. A 12% annual interest rate is charged. The interest is paid at a rate of 100n-300.
Money kept in a bank is referred to in the financial lexicon as a deposit. A deposit is a transaction in which money is transferred to a different party for safekeeping. Yet another definition of a deposit is a sum of money used as security or collateral for the delivery of a good. In general, a deposit is the amount of money that a bank has on hand.
One meaning of a deposit is when a portion of the money is utilized as a guarantee or deposit for the provision of goods or services. Transferring money to a third party, such a bank, for safekeeping constitutes a different type of deposit.
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2. if the real exchange rate is 1, then there is a a. surplus of 100 so the real exchange rate will rise. b. shortage of 100 so the real exchange rate will rise. c. surplus of 100 so the real exchange rate will fall. d. shortage of 100 so the real exchange rate will fall.
If the real exchange rate is 1, then there is a c. surplus of 100 so the real exchange rate will fall.
This is, the exchange rate is the rate of a rustic's foreign money in terms of some other forex. For instance, if the alternate charge between the U.S. Dollar (USD) and the Japanese yen (JPY) is one hundred twenty yen consistent with the dollar, one U.S. Dollar may be exchanged for one hundred twenty yen in foreign currency markets.
Alternate prices are constantly shifting, based totally on supply and demand. Whether or not one forex is in better call than another, depends on the perceived price of owning it, either to pay for items and services or as an investment.
It serves as a simple hyperlink among the local and overseas markets for various goods, services, and financial belongings. With the usage of the change price, we are capable of comparing charges of goods, offerings, and assets quoted in different currencies.
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Imagine that you are conducting a competitive analysis for a dog grooming business in your area. Put the steps in order by matching each item to the answer.
Answer:
identify your niche → step 1
Analyze your own brand → step 2
Compile a list of Competitors → step 3
Divide your competitors in two groups → step 4
Analyze each competitor brand → step 5
Develop a marketing strategy → step 6
Note → I hope these are helpful. If I am wrong then please let me know
true or false: as a result of the check clearing for the 21st century act (check 21), auditors will only be able to obtain copies of paper checks when investigating possible fraud.
The statement that check clearing for the 21st century will let auditors obtain copies of paper checks during fraud investigation is False.
The Check Clearing for the 21st Century Act removes some of the legal barriers to check truncation in order to promote innovation in the payments system and increase its effectiveness. By introducing a new negotiable instrument known as a substitute check, the law makes it easier for banks to truncate original checks, process checks data electronically, and distribute substitute checks to institutions that still want to receive paper checks.
A substitute check has all the information found on the original check and is the same thing legally as the original check. The law does not force banks to issue substitute checks using the new authority given by the Act or to accept checks in electronic form. The audit team will only be able to collect electronic copies of checks because paper ones are typically destroyed.
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cool scoops makes ice cream in two processes, mixing and packaging. during april, its first month of business, the packaging department transferred 50,800 units and $198,120 of production costs to finished goods. the company completed and sold 48,800 units at a price of $5.80 per unit in april. a. what is the cost to produce one unit of ice cream during april?b. what is the total gross profit on ice cream sales for april?
The cost to produce one unit of ice cream during April is $ 3.9 and the total gross profit on ice cream sales for April is $ 92,720.
Cost per completed unit:= Total production cost / Transferred unit
= $ 198,120 / 50,800
= $ 3.9
Total gross profit:= number of units sold × (selling price per unit – cost per unit )
= $ 48,800 × (5.8 - 3.9)
= $ 48,800 × 1.9
= $ 92,720.
By deducting the cost of items sold from revenue, gross profit—also known as gross income—is computed.Typically, fixed expenses are excluded from gross profit and only variable costs are included.A company's efficiency in employing its labor and resources to produce goods or services is measured by its gross profit.Unlike net profit, which takes into account all expenditures incurred by the entire organization, gross profit solely accounts for the cost of items sold.Gross margin, which shows what much of a company's income may be used to pay operational expenses, is a derivative of gross profit.Learn more about Gross profit, here
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you are the owner of a comfort inn and would like to hire a new general manager. in terms of preventing possible agency problems, what should you include in your offer? a. profit sharing b. a fancy office with a private secretary c. a 37-hour workweek d. a very high fixed salary
You wish to appoint a new general manager at your Comfort Inn. You ought to offer profit sharing as a way of avoiding potential agency issues.
A retirement plan known as a profit-sharing plan allows employees to participate in the company's profits. An employee is given a portion of a company's profits under this kind of plan, also known as a deferred profit-sharing plan (DPSP), based on its quarterly or yearly results.
If employee A earns $100,000 and employee B earns $200,000, the comp-to-comp approach will be used. The business decides to distribute 20% of its yearly revenues to its workers. The business made $500,000 in revenue.
Employers who are having cash flow problems may find a profit-sharing plan to be a useful solution. Employers are free to alter the amount of their annual contributions. Businesses, especially small business owners, can reduce their corporation taxes. Plans are adaptable by nature.
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what might be a potential cost or benefit of a dynamic labor market, from the persepective of either the worker or the employer? select all that apply. in a dynamic labor market
The introduction of job protection regulation may change the dynamic of the labour market and it is all over easier for a job seeker to find a job, and likewise, for an employer to find an employee is true for potential cost or benefit of a dynamic labour market
In a dynamic labour market:
The implementation of job protection regulations could alter the labour market's dynamics. this is due to the restrictions on job protection interfering with the regular operation of a dynamic labour market.Finding a job in a competitive labour market may be both simple and challenging for both employed and unemployed people.Unemployment lasts longer than typical in a labour market that is active. this is due to the effective interaction between employed and jobless people (job searchers and job providers) in such a market. hence decreasing unemployment.This is accurate in a competitive job market when there are long lines for both employers and employees.Therefore, the introduction of job protection regulation may change the dynamic of the labour market and it is all over easier for a job seeker to find a job, and likewise, for an employer to find an employee.
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which of the following statements are correct? multiple select question. when the workforce is basically fixed in the short term, managers must be cautious about how labor efficiency variances are used. companies should build inventory even if there is no immediate prospect of sale. excessive inventory contributes to inefficient operations. excessive inventory leads to low defect rates.
The labor efficiency variance measures the ability to utilize labor as expected. This variance is useful for highlighting areas in the production process that use more man-hours than anticipated. This variance is calculated as the difference between the actual labor hours used to produce a good and the standard amount that should be used, multiplied by the standard labor rate. If the variance results are unfavorable, there will likely be a review by the industrial engineer to see if the underlying process can be improved to reduce the number of hours of production required, using means such as:
Simplified product design to reduce assembly timeDecrease in the amount of scrap produced by the processIncrease the amount of automationChange workflowYou can learn more about labor efficiency variance here brainly.com/question/16269880
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tax functions that accounting and finance professionals may assist clients with include all but the following: a.tax evasion. b.tax compliance. c.esg reporting of certain tax information. d.cash management to ensure timely payment of taxes.
Tax functions that accounting and finance professionals may assist clients with include all but tax evasion, so correct option is A.
Tax evasion is an illicit movement in which an individual or substance purposely dodges paying a genuine assess obligation. Those caught sidestepping charges are by and large subject to criminal charges and significant punishments.
To willfully fall flat to pay charges may be a government offense beneath the Inside Income Service (IRS) charge code. Charge avoidance is an illicit endeavor to overcome the burden of charges by people, enterprises, trusts, and others.
The accounting work will guarantee that liabilities such as deals assess VAT, pay assess are fittingly tended to. Monetary articulations got to be recorded by the businesses with the enlistment center of companies.
Stock trades are the recorded substances that are required to record them, as well as for coordinate and circuitous assess recording purposes.
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garrison company uses the retail method of inventory costing. it started the year with an inventory that had a retail sales value of $38,000. during the year, garrison purchased inventory with a retail sales value of $768,200. after performing a physical inventory, garrison computed the inventory at retail to be $53,600. the markup is 100% of cost. what is the ending inventory at its estimated cost?
Garrison company uses the retail method of inventory costing. $34,000 the ending inventory at its estimated cost.
Any group of soldiers stationed in a certain location, initially to guard it, is known as a garrison. The term "garrison" comes from the French "garrison," which is derived from the verb "to equip." Nowadays, the phrase is frequently used to describe specific locations that make up a military installation or a fortified military headquarters. Typically, a garrison is located in a city, town, fort, castle, ship, or other location. Any town with a military base close by is often referred to as a "garrison town."
Arab-Muslim armies used "garrison towns" (Arabic: ) to strengthen their control over local communities throughout the Arab Islamic conquests of Middle Eastern territories. The term "garrison" is also used to refer to any of the major military installations in the UK, including Aldershot, Catterick, Colchester, Tidworth, Bulford, and London.
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last year a government official proposed that gasoline price controls be imposed to protect the poor from rising gasoline prices. what problem is likely to result from this proposal? explain.
Many believe that oil company greed is the root of the problem and that price limits enforced by the government will solve it.However, limiting the price of gasoline is a horrible idea.They would harm both consumers and producers by causing shortages and lines.
what problem is likely to result from this proposal? All American drivers are being impacted by the high cost of gas, but low-income households suffer the most.This is because, in comparison to homes with higher incomes, low-income households allocate a larger portion of their budgets to transportation expenses and other necessities like food and electricity. Price limitations have a wide range of negative consequences.By causing shortages, they frequently make consumers wait in line, they frequently cause the quality of goods whose prices are controlled to decline, and they might result in supplier bias.Until the price limitations are lifted, all of those consequences continue. In an effort to slow the rate of inflation, price controls can also be employed to cap price rises.Maximum prices have the potential to lower the cost of food and make it more affordable, but they also carry the risk of reducing supply and creating a scarcity.The price manufacturers get may rise with minimum prices.To learn more about price controls refer
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what does beworks do and how is it different from typical consulting firm? please visit beworks website. what is behavioral economics? although we covered this in class, do your own research to provide details on behavioral economics.
The study of how people's economic decisions affect market prices, returns, and resource allocation is known as behavioral economics.
What is be works' function?
We comprehend human behavior and alter it for the better.
Using science, we reveal the unseen factors that influence everyday behavior and develop innovative solutions to today's issues and foresee the challenges of tomorrow.
What is the work of behavioral economists?
Based on psychology and market research, behavioral economic consultants work to comprehend their clients' requirements and create individual business plans and solutions. You can choose to work as a consultant in a specialized field, such as education or health care, and either work for yourself or for a private company.
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jan throng invested $31,000 in the invesco charter mutual fund. this fund is a front load fund with 5.50 percent commission. calculate the amount of commission jan will pay when the fund is purchased.
The amount of commission Jan will pay when the fund is purchased is $1,705.
What do you mean by fund?
A fund is a collection of money set aside for a specific purpose. A fund can be established for a variety of reasons, such as the government setting aside funds to build a new convention centre, a college setting aside funds to grant a scholarship, or an insurance company setting aside funds to repay its customers' claims.
The investment is $31,000 in the invesco charter mutual fund and fund is a front load fund with 5.50 percent commission,
so, 31000 x 5.50 %
= $1,705 commission paid
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the advantages of which type of business include ownership of all profits, freedom and flexibility, and ease and low cost of organization and dissolution?
The sole proprietorship is the advantage in the business including ownership of all profits, freedom, flexibility, and ease and low cost of organization and dissolution
What is a sole proprietorship?A sole proprietorship is a type of business that is owned and operated by one person and in which there is no legal separation between the owner and the business entity. It is also referred to as a lone tradership, individual entrepreneurship, or proprietorship. A sole proprietor may hire staff members and does not always work alone.The lone proprietor is solely responsible for all losses and obligations and receives all gains (subject to business-specific taxes). The owner of the firm is the owner of all of the company's assets and is also responsible for all of the company's debts. A trade name or business name other than the sole proprietor's or the business's legal name may be used. If their company name differs from their legal name, they might need to officially trademark it; the procedure will depend on where they live.To learn more about sole proprietorship, refer to https://brainly.in/question/5781838
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during march, a firm expects its total sales to be $169,000, its total variable costs to be $95,900, and its total fixed costs to be $25,900. the contribution margin for march is:
The contribution margin for march is $73100
Contribution margin is that part of sales revenue which has not been consumed by the variable cost.
Contribution margin is selling price minus variable cost or also we can say selling price per unit minus variable cost per unit.
In this ques, it is given that total sales are expected to be $169000 and variable cost to be $95900.
Contibution margin = Selling price - Variable cost
Here, Selling cost = $169000
Variable cost = $95900
Thus, contribution = $169000-$95900
= $73100
When fixed cost is deducted from contribution margin, we get profit
Here, fixed cost = $25900
Thus, profit = contribution - fixed cost
= $73100 - $25900
= $47200
Thus, contribution margin and profit for march are $73100 and $47200 respectively.
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