Answer: Option (C) is correct.
Explanation:
Correct option: The price level and nominal wages.
According to the classical dichotomy, nominal variables moves proportionately with the quantity of money whereas real variables remains unchanged.
A classical model that is based on the flexibility of prices and wages, conclude that any changes in money supply only affects the nominal variables whereas real variables remains constant. This theory results in the independence of the real variables from any changes in the money supply and nominal variables.
Answer:
Under the installment sales method, the total contract price is $85,000
gain on the sale is $58,800 ( 85,000 + 15,000 - 40,000 - 1,200)
and the amount of gain reported in 2018 is $3,459.
Answer:
Relevant costs:
Selling price= 6.50
Delivery= $125
Explanation:
Giving the following information:
The special project would require all 360 kilograms of the raw material that are in stock and that originally cost the company $2,520 in total.
If the company were to buy new supplies of this raw material on the open market, it would cost $7.25 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $6.50 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $125 for all 360 kilograms.
The relevant costs are those that affect the decision moving forward. Costs that occurred in the past musn't be taken into account.
Relevant costs:
Selling price= 6.50
Delivery= $125
