Answer:
The correct answer is B.
Explanation:
Giving the following information:
At the normal capacity of 16,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced.
Variable overhead rate= 64,000/16,000= $4
Overhead variance= real - allocated
Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable
Answer:
The correct answer is d. Different economic models employ different sets of assumptions.
Explanation:
To approach the study of economic reality it is necessary, in some way, to simplify it; keep certain variables under control. Precisely for this, it is that economic models are built.
Economic models are built on principles of departure, called "assumptions." Such assumptions fulfill the same role as the postulates in geometry. That is:
- They are not subject to deduction from other more basic principles.
- They are "reasonably" true but not necessarily verifiable.
- They function as premises in the logical structure to deduce the conclusions and correlations found in the lowest levels of generality.
We can say then, that the theoretical explanations refer to invisible "relationships", whose existence is proposed by the theory, and whose implications are logically deduced, and then corroborated by observations. They consist of:
- Assumptions (eg subjects want to maximize their earnings).
- Relevant variables (eg price and quantity).
- Binding hypothesis (eg quantity demanded based on price).
- Conclusions or predictions of observable facts (eg prices will rise).
Answer:
option (c) $19.47
Explanation:
Data provided in the question:
Annual divided just paid, D0 = $2.20
Growth rate = 2.2% = 0.022
Required rate of return = 14% = 0.14
Now,
Current price of the share = [ D0 × ( 1 + g )² ] ÷ [ r - g ]
= [ $2.20 × ( 1 + 0.022 )² ] ÷ [ 0.14 - 0.022 ]
= $2.2978648 ÷ 0.118
= $19.47
Hence,
The answer is option (c) $19.47
Answer:
The correct answer is B. The law of demand states that quantity demanded will vary inversely with the price of the good.
Explanation:
The law of demand states that the value of demand decreases as the price of the product increases, that is, between the value of demand and the price there is an inverse relationship, therefore, an increase in price causes a decrease in demand, and a decrease in price causes an increase in demand.
Therefore, manufacturers who have decided to produce more should know that an increased number of goods can only be sold at a lower price.
The quantity of goods purchased depends on the price as well as on the average income of the buyers, the size of the market, the price and usefulness of other goods, including substitutes, subjective tastes and preferences of buyers.