Answer: Increase in net income by $20,000.
Explanation:
If the special order is accepted,
Net income = Revenues - Manufacturing costs - Shipping cost
= (5,000 units × $36) - (5,000 units × $27) - (5,000 units × $5)
= $180,000 - $135,000 - $25,000
= $20,000
The special order should be Accepted. so they can earn an additional income of $20,000
A major advantage of the built-in or automatic stabilizers is that they require no legislative action by Congress to be made effective.
<h3>What are automatic stablizers?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of the congress. An example of an automatic stablizer is taxes.
In an expansion, progressive tax increases the tax paid by citizens and in a contraction, tax paid is reduced and this increases disposable income.
Here is the complete question:
A major advantage of the built-in or automatic stabilizers is that they:
(a) simultaneously stabilize the economy and reduce the absolute size of the public debt.
(b) automatically produce surpluses during recessions and deficits during inflation.
(c) require no legislative action by Congress to be made effective.
(d) guarantee that the federal budget will be balanced over the course of the business cycle.
The answer to this question is <span>high magnitude of consequences
Delivering faulty products to the consumers could heavily damaged company's reputation in a short period of time.
This kind of damage could make the market to lose trust in the company which will became a huge hindrance if the company want to sell any other products in the future.</span>
This is known as "excess reserves."
Many banks will choose to loan the excess reserves out to customers and earn money from the collected interest.
Answer:
Substitute
Explanation:
substitute goods are usually used in place of the original or the intended one. It is simply known to be a close replacement for one another just as price increase, demand for goods and services increases. A common examples of substitute goods are margarine and butter, turkey and chicken and others. In goods Substitution, the increase in price of one good increases demand for the other while the decline in price of one good will decrease demand for the other. That is if Coke price goes up, more people will likely to buy Pepsi. Substitute products as an offering product of different businesses or industries, is said to satisfy similar customer needs.