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Alona [7]
3 years ago
13

The 2003 iraqi war destroyed large amounts of capital. later, insurgent activity continued to destroy capital and created instab

ility in the government. today, hostilities have waned and the government has become more stable. according to the solow growth model, over the next few years we would expect to see growth rates in iraq to be _____ those of high-income countries with similar institutions followed by growth rates that are _______ the growth rates in those countries.
a. about the same as; lower than
b. lower than; about the same as
c. higher than; much higher than
d. higher than; about the same as
Business
1 answer:
TiliK225 [7]3 years ago
8 0
A. about the same as;lower than
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Explanation:

a) Data and Calculations:

Selling price per unit                                                            $ 91

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials                                                    $ 13

Direct labor                                                            $ 7

Variable manufacturing overhead                      $ 3            23

Contribution per unit                                                         $ 68

Fixed manufacturing overhead per year                 $480,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 6

Fixed selling and administrative expense per year $ 84,000

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Units in beginning inventory          0            3,000

Units produced during the year   12,000   10,000

Units sold during the year             9,000   10,000

Units in ending inventory              3,000     3,000

Year 2:

Income Statement:

Sales Revenue ($91 * 10,000) =  $910,000

Variable manufacturing costs      230,000 ($23 * 10,000)

Variable selling and admin.            60,000 ($6 * 10,000)

Contribution margin                   $620,000

Fixed manufacturing costs          480,000

Fixed selling and admin. costs      84,000

Net operating income (loss)      $ 56,000

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