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refer to the original data. by automating, the company could reduce variable expenses by $3 per unit. however, fixed expenses would increase by $72,000 each month. compute the new cm ratio and the new break-even point in both unit sales and dollar sales. assume that the company expects to sell 26,000 units next month. prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (show data on a per unit and percentage basis, as well as in total, for each alternative.) would you recommend that the company automate its operations? explain.

Amathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. thus, if mexico's real gdp per person is growing at 7 percent per year, it will take about 10 years(=70/7) to double. apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the u.s. if real gdp per person in mexico grows at the rate of 5 percent per year: how long will it take mexico's real gdp per person to reach the level that the united states was at in 2005? (hint: how many times would mexico's 2005 real gdp per person have to double to reach the u.s.'s 2005 real gdp per person?

Uestion 7 you hold a portfolio consisting of a $5,000 investment in each of 20 different stocks. the portfolio beta is equal to 1.12. you have decided to sell a coal mining stock (b = 1.00) at $5,000 net and use the proceeds to buy a like amount of a mineral rights company stock (b = 2.00). what is the new beta of the portfolio?

Which of the following is not an example of one of the four mail advantages of prices on a free market economy