Answer:
Option (a) is correct.
Explanation:
Given that,
Sales = $1,000,000
Contribution margin = 200,000
Total direct fixed costs = 120,000
Average total operating assets = 400,000
Controllable margin for the year:
= Contribution margin - Controllable fixed cost
= $200,000 - $120,000
= $80,000
Therefore, the controllable margin for the year is $80,000.
Answer:
Sales orientation
Explanation:
Sales orientation refers to an approach that is taken by an organization in which the firm is improving its sales by using the sales tactics i.e. in terms of advertising, personal selling, etc
Therefore in the given case, for customer persuasion, the customers purchased the new products or existing products more products are purchased so this represents the sales orientation stage and the same is to be considered
Answer:
nominal; nominal; real; the classical dichotomy.
Explanation:
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run. For example, an increase in the money supply, a nominal variable, will cause the price level, a nominal variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a real variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as the classical dichotomy.
A nominal variable is the monetary value of a security such as bonds or stocks, without considering any change in price caused by inflation. It is also referred to as the par value or face value.
A real variable measures goods and services taking into consideration any change in price or that has been adjusted for inflation so as to allow comparison of goods with respect to another goods or services.
Hence, if the money supply is increased, it will cause an increase in the price of goods and services but will have no effect on the gross domestic product (GDP), which is known as the classical dichotomy.
