Answer:
During each phase of the economic cycle of Recession and Expansion, the following economic variables fluctuate, accordingly:
I. Output: During Recession, production output reduces. But, during expansion, product output rises with rising income, employment, and even stable inflation.
II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.
III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises. It reduces when the economy enters a recession.
Explanation:
Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation. It usually cascades between the spectrum of expansion and recession. This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.
Answer:
$1,389,375
Explanation:
Data provided as per the question:-
Product per unit = $195
Current sales = 42,300 units
Break-even sales = 35,175 units
The computation of margin of safety in dollars is shown below:-
Margin of safety (in units) = Total sales - Break-even sales
= 42,300 - 35,175
=7,125 units
Margin of safety (in dollars) = Margin of safety × Product per unit
=(7,125 × $195)
= $1,389,375
Answer:
c.) $1.73
Explanation:
Price = 
D0= Last dividend paid
r= rate of return
g = growth rate
Price = 
Price = 0.207 / 0.12
Price = 1.725
Therefore, the current value of the stock is $1.73
Answer:
Unit product cost is equal to $66
Explanation:
It is given that direct material cost = $14
Direct labor cost = $44
Variable manufacturing overhead = $8
We have to find the unit product cost
Unit product cost is the sum of material cost labor cost and manufactoring overhead
Therefore unit product cost = $14+$8+$44= $66
So unit product cost is equal to $66
