Answer:
A. economies of scale.
Explanation:
The economies of scale is the scale where the company has the advantage of the cost that reaped by the organization in the case when there is an efficient production. It could be accomplished when the level of production or the volume of the production rises by lowering the cost
Therefore as per the given situation, the option A is correct as it fits to the current situation
Hence, the correct option is A.
Answer: c. Contribution margin ratio = 1 − Variable cost ratio
Explanation:
The Contribution margin ratio is defined as the difference between the sales price of a good and it's variable costs. It is expressed as a percentage.
The formula is,
Contribution Margin Ratio = Sales - Variable Costs / Sales
Breaking the formula down further we have,
Contribution Margin Ratio = Sales/ Sales - Variable Costs / Sales
Contribution Margin Ratio = 1 - Variable Costs / Sales
Variable Cost/Sales is the Variable Cost Ratio.
So Option C is correct.
Answer:
B. In the long run, a change in the nominal exchange rate brings an equivalent change in the real exchange rate.
Explanation:
As we know that in the short run there is a decline in the nominal exchange that results in a decrease of real exchange rate due to which there is a reduction of the import and the export is risen.
But in the case of the long run, if there is a change in the nominal exchange rate so the real exchange rate would remain the same
This results that if there is a change in the nominal exchange rate so it would not bring the equal change in the real exchange rate
Hence, option B is incorrect
Answer:
$56,130
Explanation:
Calculation to determine what the amount of itemized deductions the Gibsons may claim for the year is
Stuart and Pamela Gibson
Casualty loss $17,430
[$53,200 – (10% × $357,700)]
Home mortgage interest 21,280
State tax 10,000
(18,000 income and 16,300 property
Limited to 10,000)
Charitable Contributions 28,700
Total itemized deductions $56,130
Therefore the amount of itemized deductions the Gibsons may claim for the year is $56,130
