Nếu ngân hàng trung ương tăng cung tiền và chính phủ muốn duy trì tổng cầu ở mức ban đầu thì chính phủ cần giảm thuế thu nhập. Đúng hay sai và giải thích

Answers

Answer 1

Answer:

sai

Explanation:

Tăng cung tiền dẫn tới lãi suất bị giảm -> đầu tư tăng -> AD tăng

giảm thuế thu nhập -> thu nhập khả dụng tăng -> chi tiêu tăng -> AD tăng

Do đó, muốn duy trì tổng cầu ở mức ban đầu thì phải tăng thuế thu nhập


Related Questions

bRamapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,048 4 7 Dinks 2,236 5 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $82,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is

Answers

Answer:

Ramapo Company

The factory overhead allocated per unit of Dinks is:

= $56.94.

Explanation:

a) Data and Calculations:

Product   Number of Units    Direct Labor         Machine

                                            Hours Per Unit   Hours Per Unit

Blinks                1,048                   4                           7

Dinks               2,236                   5                           6

                                      Fabrication      Assembly

Estimated overhead       $82,200       $102,000

Machine hours:

Blinks                              7,336

Dinks                              13,416

Total machines hours  20,752

Direct Labor hours:

Blinks                                                          4,192

Dinks                                                          11,180

Total machines hours                              15,372

Total factory overhead         Blinks          Dinks

Fabrication department    $29,058      $53,142

Assembly department          27,816        74,184

Total allocated overhead  $56,874   $127,326

Units produced                       1,048        2,236

Factory overhead per unit  $54.27      $56.94 ($127,326/2,236)

Emmitt uses his leadership and position to produce effects on others and influence his followers. What term is used to describe this ability of leadership?
a. Coercion
b. Force
c. Power
d. Authority

Answers

Answer:

c. Power

Explanation:

Leadership can be defined as a process which typically involves motivating, encouraging and inspiring employees working under an individual to be innovative and create positive changes that will foster growth and enhance the success of a business firm or company in the future.

A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her. Some types of power expressed by leaders are referent power, legitimate power, coercive power, etc.

Generally, leaders use their powers to get other people to follow them. Some forms of power result from a formalized position in the organization while others are derived from personal characteristics or knowledge.

In this scenario, Emmitt uses his leadership and formal position to produce effects on others and influence his followers. Thus, the terminology which is used to describe Emmit's ability of leadership is power.

In conclusion, power is based on three (3) main factors, which are leader, follower and situation.

It should not usually be clear whether we are describing independent or mutually exclusive projects in the following chapters because when we only describe one project then it can be assumed to be independent.

a. True
b. False

Answers

Answer:

false

Explanation:

A mutually exclusive project is a project that if one occurs then the other project cannot occur also at the same time. Mutually exclusive projects are independent projects also

Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 195,000 in October, 203,500 in November, and 200,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $152,000 per month. Compute the total budgeted overhead for October.

Answers

Answer:

the  budgeted overhead for October is $288,500

Explanation:

The computation of the budgeted overhead for October is given below:

The budgeted overhead is

= fixed overhead + variable overhead

= $152,000 + 195,000 units × $0.70

= $152,000 + $136,500

= $288,500

Hence, the  budgeted overhead for October is $288,500

Therefore the same is to be considered

The seven main functions of marketing summarize what it takes to _____.

Answers

Explanation:

The seven functions of marketing are distribution, market research, setting prices, finance, product management, promotional channels and matching products to consumers

I guess this may help

Answer:

All of the above

Explanation:

just took it

what is probability/impact matrix

Answers

Explanation:

probability and impact metrix is a tool for the project team iad in prioritizing risks.

Probability and Impact Matrix. The Probability and Impact Matrix is one the most commonly used qualitative assessment method. It is based on the two components of risk, probability of occurrence and the impact on objective(s) if it occurs.

A major distinction between a conventional bank and an Islamic bank is that Islamic banks __ are allowed to charge higher interest on loans. cannot accept private deposits. cannot pay or charge interest. are not subject to any form of law,

Answers

Answer:

cannot pay or charge interest.

Explanation:

Islamic banks are banks that are based on Islamic laws or Sharia laws which is found in the Qur'an.

In Islamic banking, all banking transactions must be compliant with the Sharia laws.

Islamic banks differ from conventional banks in that :

1. they prohibit usury : Usury is charging interest on loans

2. they prohibit all forms of speculation : Islamic laws prohibit all forms of gambling

3. Investments in items that are not allowed in the Qur'an e.g. alcohol

Islamic bank use equity participation to make money. When an  Islamic bank lends money to a business, instead of charging interest on the loan, the receive equity in that business and are entitled to a part of the company's shares

) Calculate the CPI for each year. Show your work in the chart and circle the CPI for each year. b) Calculate the inflation rate for each year compared to the year prior. Show your work in the chart and circle the inflation rate for each year. c) Based on your completed chart, what is the percentage decrease or increase in 2022 prices compared to 2020

Answers

Answer:

CPI in 2019 = 80

CPI in 2020 = 100

CPI in 2021 =120

CPI in 2022 =180

Inflation rate in 2019 = -

Inflation rate in 2020 = 25%

Inflation rate in 2021 = 20%

Inflation rate in 2022 = 50%

There was a 25% increase in price from year 2020 to 2022

Explanation:

Please find attached an image of the table used in answering this question

The consumer price index measures the changes in price of a basket of good. It is used to measure inflation.  

CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100

CPI in 2019 = 16/20 x 100 = 80

CPI in 2020 = 20 / 20 x 100 = 100

CPI in 2021 = 24 / 20 x 100 = 120

CPI in 2022 = 36 / 20 x 100 = 180

Inflation is a persistent rise in the general price levels

Inflation rate = (change in prices / previous years price) x 100

Inflation rate in 2020 = [(20 - 16) / 16] x 100 = 25%

Inflation rate in 2021 = [(24 - 20) / 20] x 100 = 20%

Inflation rate in 2022 = [(36 - 24) / 24] x 100 = 50%

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $50,000 in its bank account. The note has a three-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required:

Answers

Question Completion:

Required:

1.Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.

2.Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.

3.If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2018?

Answer:

Cucina Corp.

1. Annual Amortization Schedule  

Year   Beginning       Interest Expense    Repaid Principal   Ending Notes

       Notes Payable  on Notes Payable                                      Payable

1        $50,000.00         $2,140.23               $15,842.25         $34,157.68

2        $34,157.68         $1,329.68               $16,652.80          $17,504.84

3        $17,504.84             $477.71                $17,504.77          $0.00

2. (a) January 1, 2018

Debit Cash $50,000

Credit Installment Note Payable $50,000

To record the issuance of the installment note.

December 31 of

(b) 2018

Debit Interest Expense $2,140.23

Debit Installment Note Payable $15,842.25

Credit Cash $17,982.48

To record the first installment repayment, including interest.

(c) 2019

Debit Interest Expense $1,329.68

Debit Installment Note Payable $16,652.80

Credit Cash $17,982.48

To record the second installment repayment, including interest.

(d) 2020

Debit Interest Expense $477.71

Debit Installment Note Payable $17,504.77

Credit Cash $17,982.48

To record the third and final installment repayment, including interest.

3. (b) 2018

Debit Interest Expense $625

Credit Interest Payable $625

To accrue interest expense for the year ($50,000 * 5% * 3/12)

Explanation:

a) Data and Calculations:

Installment note payable obtained on January 1, 2018 = $50,000

Period of note payable = 3 years

Interest rate = 5% compounded annually

Annual interest payment = December 31

On December 31, 2020, the Bennett Company had 110,000 shares of common stock issued and outstanding. On July 1, 2021, the company sold 22,000 additional shares for cash. Bennett's net income for the year ended December 31, 2021, was $630,000. During 2021, Bennett declared and paid $72,000 in cash dividends on its nonconvertible preferred stock. What is the 2021 basic earnings per share

Answers

Answer:

$4.61

Explanation:

Calculation to determine the 2021 basic earnings per share

Using this formula

2021 basic earnings per share=Net income-Cash Dividend/shares of common stock issued+(additional shares for cash*6/12)

Let plug in the formula

2021 basic earnings per share=$630,000-$72,000/110,000+(22,000*6/12)

2021 basic earnings per share=$558,000/110,000+11,000

2021 basic earnings per share=$558,000/121,000

2021 basic earnings per share=$4.61

Therefore the 2021 basic earnings per share is $4.61

The 2021 basic earnings per share is $4.61

Earnings per share = (Net Income - Preferred Dividends) / WACSO

EPS = (630,000 - 72,000) / 121,000

EPS = 558,000 / 121,000

EPS = 4.61

To compute for Weighted average common stock outstanding.

January 1, 2021       110,000 * 12/12                       110,000

July 1, 2021              22,000 * 6/12                         11,000

Weighted Average Common Stock outstanding       121,000

Therefore, the 2021 basic earnings per share is $4.61

Learn more at : https://brainly.com/question/7520008

In 4-6 sentences, discuss how understanding the concept of price elasticity of demand is useful for a business owner/firm operating in any market structure. Copying the definition or restating the definition of elasticity will result in loss of points. (What does price elasticity of demand tell the firm in terms

Answers

Answer:

The concept of price elasticity is important to a firm because it would help a firm determine how to change prices in order to increase total revenue

For example, if a firm has an elastic demand, if price is increased, the quantity demanded would fall. The fall in demand would be greater than the increase in price. As a result, total revenue would fall. If price is reduced, the quantity demanded would increase.. the increase in demand would be greater than the reduction in price. Total revenue would increase

If on the other hand, demand is inelastic, if price is increased, total revenue increases. If price is reduced, total revenue reduces

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

Glen Inc. and Armstrong Co. have an exchange with no commercial substance. The asset given up by Glen Inc. has a book value of $72,000 and a fair value of $96,000. The asset given up by Armstrong Co. has a book value of $120,000 and a fair value of $114,000. Boot of $24,000 is received by Armstrong Co.What amount should Armstrong Co. record for the asset received

Answers

Answer:

the amount that should be recorded as the asset is $96,000

Explanation:

The computation of the amount that should be recorded as the asset is given below:

Book value of assets given up = $72,000

Add : cash paid in exchange. $24,000

Amount recorded as an asset should be $96,000

We simply added the book value and the cash paid amount for an exchange

Therefore the amount that should be recorded as the asset is $96,000

You discover that many consumers want easy access to pens in their cars, so you decide to produce a steering wheel that has a pen tucked inside that can conveniently pop out whenever someone needs it. The steering wheels become very popular with car companies. Developing this product is an example of what

Answers

Answer: c. Allocative efficiency

Explanation:

When an economy is experiencing allocative efficiency, it means that goods in the economy are being produced according to consumer preferences. This means that if consumers want a certain good in a certain quantity, the economy will produce that good in that quantity.

This is the case here. You saw that consumers wanted a good and you went ahead and produced it therefore giving consumers what they wanted.

Ruston Company had Net Income for 2020 of $6,200,000. The firm invested $4,000,000 in manufacturing equipment during 2020. The equipment is being depreciated over five years using straight-line depreciation, starting in 2020. Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2020 with amounts in thousands. What is the Net Cash Flow in 2020

Answers

Answer:

$3,000,000

Explanation:

Calculation to determine the Net Cash Flow in 2020

STATEMENT OF CASH FLOW

For the Year 2020

Cash flow from operating Activities:

Net Income $6,200,000

Add Depreciation Expense $ 800,000

Net Cash provided by operating activities $7,000,000

($6,200,000+$800,000)

Cash flow from Investing activities:

Investment in Equipment ($4,000,000)

Net Cash used in Investing activities ($4,000,000)

Net Cash flow in 2020 $3,000,000

Depreciation under Straight Line method = (Cost - Salvage Value)/Useful Life

Depreciation under Straight Line method= (4000000-0)/5

Depreciation under Straight Line method= 800,000

Therefore the Net Cash Flow in 2020 is $3,000,000

What kind of business can you start without start up capital?​

Answers

Answer:

Blog or Vlog

Explanation:

you can start a daily life Blog in social media.

Given that individuals tend to judge the favorability of their outcomes relative to what others receive, what can be the result of someone getting rewarded for their performance but yet being disappointed in the reward that they receive?
Lewis Vacation Rentals has been experiencing a recent decline in its bookings. In an effort to increase sales, the company is offering its employees a 1 percent share in the company profit over the next six months in addition to regular employee salaries. Will this plan increase motivation? Why or why not?

Answers

Answer:

im not to sure

Explanation:

Answer:

C

Explanation:

expand the profitable departments and close down unprofitable ones

[ Shareholders - Employees - Managers - Officers - Board of Directors ]
(a) Who manages the big picture and strategies for corporations, and who manages the day to day affairs of a corporation?
(b) How are each put in their position?

Answers

A)board of directors
B)you can appoint new company shareholders at any point after incorporation.

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product.

Required:
Determine the machineâs second-year depreciation and year end book value under the straight-line method.

Answers

Answer:the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.

Explanation:

Straight line depreciation is calculated as

Depreciation= Initial value – salvage value / useful life

Depreciation=($48,400- $9,000)/10=$3,990

The depreciation expense each year would be $3990

Book value = Cost of asset- accumulated deprecation

Book value = Cost of asset - (2 years x depreciation)

=  $48,400- (2 x $3,990)

= $40,420

Therefore, the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.

According to the interest parity condition, if the domestic interest rate is 12 percent and the foreign interest rate is 10 percent, then the expected _________ of the foreign currency must be _________ percent. Group of answer choices

Answers

Answer: Appreciation; 2%

Explanation:

From the information given in the question,

Domestic Interest rate = 12%

Foreign interest rate = 10%

Let's assume,

S = spot exchange rate

F = forward exchange rate,

Based on the per interest rate parity, the forward exchange rate will be:

F = S × (1 + 10%) / (1 + 12%) = 0.98x

F = S × (1+0.1)/(1+0.12) = 0.98x

Therefore, the forward exchange rate will be expected to fall by:

= 1 - 0.98

= 0.2

= 2%

Elbert uses FedEx in a scheme to defraud Global Sales Company by obtaining merchandise to which he is not entitled. Found guilty of mail fraud, Elbert can be punished by

Answers

Answer: None of the choices.

Explanation:

The options to the question are:

a. imprisonment for up to fifty years.

b. imprisonment for up to twenty years and/or fines.

c. fines up to $5 million.

d. none of the choices

Based on the questions asked, the options provided aren't correct. It should be noted that Elbert can be punished by imprisonment in this case for a period of your to about five years as well as a fine of up to $1000.

All of the following are anticipated effects of a proposed project. Which of these should be considered when computing the cash flow for the final year of the project? Operating cash flow and salvage values only Salvage values and net working capital recovery only Operating cash flow, net working capital recovery, salvage values Net working capital recovery and operating cash flow only Operating cash flow only

Answers

Answer: Operating cash flow, net working capital recovery, salvage values

Explanation:

The anticipated effects of a proposed project that should be considered when computing the cash flow for the final year of the project include the operating cash flow, net working capital recovery, and the salvage values.

It should be noted that the operating cash flows which consist of the net income and the non cash expenses with the salvage value and the redemption of working capital are all included during the computation of the cash flow for the final year of the project.

Wood used in the production of furniture. select a type of costs 2. Fuel used in delivery trucks. select a type of costs 3. Straight-line depreciation on factory building. select a type of costs 4. Screws used in the production of furniture. select a type of costs 5. Sales staff salaries. select a type of costs 6. Sales commissions. select a type of costs 7. Property taxes. select a type of costs 8. Insurance on buildings. select a type of costs 9. Hourly wages of fur

Answers

Answer:

Variable costs change with the volume of production.

Fixed costs remain constant for a certain level of production.

Mixed costs have an element of both in that they are constant but will change if a certain level of production is passed.

1. Wood used in production of furniture ⇒ Variable cost

2. Fuel used in delivery trucks  ⇒ Variable cost

3. Straight-line depreciation on factory building  ⇒ Fixed cost

4.Screws used in production of furniture ⇒ Variable cost

5. Sales staff salaries ⇒ Fixed cost

6. Sales commissions ⇒ Variable cost

7. Property taxes ⇒ Fixed cost

8. Insurance on buildings ⇒ Fixed cost

9. Hourly wages of furniture craftsmen ⇒ Variable cost

Watermelon, Inc. provides the following data: 20X9 20X8 Cash $41,000 $25,000 Accounts Receivable, Net 102,000 62,000 Merchandise Inventory 72,000 50,000 Property, Plant, and Equipment, Net 181,000 120,000 Total Assets $396,000 $257,000 Additional information for the year ending December 31, 20X9: Net Credit Sales $550,000 Cost of Goods Sold 150,000 Interest Expense 25,000 Net Income 181,000 Calculate the rate of return on total assets for 20X9.

Answers

Answer:

the rate of return on total assets is 63.09%

Explanation:

The calculation of the rate of return on total assets is shown below:

Return on total Asset is

= {(Net Income + Interest Expense) ÷ Average Total assets} × 100

= {($181,000 + $25,000) ÷ ($396,000 + $257,000) ÷ 2} × 100

= $206,000 ÷ $326,500 × 100

= 63.09%

Hence, the rate of return on total assets is 63.09%

When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices

Answers

Answer:

1. Responsive

2. Elastic

Explanation:

When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.

This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.

Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.

While traditional and charismatic styles of leadership focus on ___________________________________, transformational leadership involves an emphasis on _________________________ rather than the individual. getting the job done, tasks tasks, personality vision, hardwork personalities, principles

Answers

Answer:

personality vision, hard work personalities

Explanation:

Charismatic leaders are those that make use of their language style to charm and influence others. They often have the ability to communicate with people at a deeper level of understanding. While the transformational leadership style focuses on internal motivation and positive development of followers.

trình bày ưu nhược điểm của các loại hình doanh nghiệp

Answers

Answer:

Explanation:

Doanh nghiệp tư nhân;

Công ty hợp danh;

Công ty TNHH 1 thành viên;

Công ty TNHH 2 thành viên;

Công ty cổ phần;

Cunningham Industries reported actual sales of $2,000,000, and fixed costs of $510,000. The contribution margin ratio is 30%.
Compute the margin of safety in dollars and the margin of safety ratio.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Actual sales= $2,000,000

Fixed costs= $510,000

Contribution margin ratio= 0.3

First, we need to calculate the break-even point in sales dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)=  510,000 / 0.3

Break-even point (dollars)=  $1,700,000

Now, the margin of safety:

Margin of safety= (current sales level - break-even point)

Margin of safety= 2,000,000 - 1,700,000

Margin of safety= $300,000

Finally, the margin of safety ratio:

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 300,000 / 2,000,000

Margin of safety ratio= 0.15 = 15%

Gotiable sells straw hats for $24 each. The April inventory purchases are summarized below. Gotiable sold 142 hats at a hat festival on April 28. Units Cost each Dollars Beg. Inv. 84 3 252 April 2 75 4 300 April 14 66 7 462 April 23 52 8 416
Assume that Gotiable uses the average cost method for inventory costing.
1. What is the average cost of one hat? (Round to the nearest penny (2 decimal points)).
2. What will be the dollar value of the inventory on the April 30th balance Sheet? (Round to the nearest dollar)
3. What will Gotiable report as Gross margin for the hats for the month of April? (Round to the nearest dollar)

Answers

Answer and Explanation:

The computation is shown below:

1.

Particulars        Units                 Unit Cost           Dollars

Beg. Inv.             84                      $3                    $252

Apr-02                75                      $4                    $300

Apr-14                  66                     $7                    $462

Apr-23                  52                    $8                    $416

Total                      277                                            $1,430

Average cost of one hat is

= Total cost of purchases ÷ Units purchased

= $1,430 ÷ 277 units

= $5.16  

2.  

Ending Inventory in Units = Units purchased - Units sold

= 277 units - 142 units

= 135 units

Now

Value of Ending Inventory = Units in Ending Inventory × Average cost per unit

= 135 units × $5.16

= $696.60

= $697

3

Gross Margin = Units sold × (Selling Price - Cost of goods sold)

= 142 units × ($24 - $5.16)

= $2,675.28

= $2,675

How does unemployment impact a society

Answers

Unemployment has costs to a society that are more than just financial. Unemployed individuals not only lose income but also face challenges to their physical and mental health. Societal costs of high unemployment include higher crime and a reduced rate of volunteerism.

unemployment promotes poverty in the society

Explanation:

as people don't earn an income poverty is promoted which causes problems in economy

MC Qu. 71 Benjamin Company had the following results... Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $9.95) $159,200 Direct materials and direct labor$95,200 Overhead (20% variable) 15,200 Selling and administrative expenses (all fixed) 31,900 (142,300) Operating income $16,900 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,900 units at $7.39 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $590 and selling and administrative costs by $290. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

Answers

Answer:

Benjamin Company

Assuming Benjamin has excess capacity and accepts the offer, its profits will increase by:

= $3,995.

Explanation:

a) Data and Calculations:

Sales (16,000 units at $9.95)                          $159,200

Direct materials and direct labor                     $95,200

Overhead (20% variable)                                    15,200

Selling and administrative expenses (all fixed) 31,900

Total expenses                                                (142,300)

Operating income                                            $16,900

Relevant costs:

Direct materials and direct labor                     $95,200

Variable Overhead (20% variable)                       3,040 ($15,200 * 20%)

Total expenses                                                  (98,240)

Variable cost per unit = $6.14 ($98,240/16,000)

Additional costs:

Fixed overhead                                                        590

Selling and administrative expenses (all fixed)     290

Accepting the offer:

Revenue from offer =       $28,821 (3,900 * $7.39)

Costs:

Variable cost                    $23,946 (3,900 * $6.14)

Additional cost:

Fixed overhead                      590

Selling and

administrative expenses      290

Total costs on the offer $24,826

Increase in profits =         $3,995

Other Questions
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