<u>Answer: </u>Option C
<u>Explanation:</u>
Manufacturing costs are the costs which are involved in the production of the goods. It excludes the direct materials and the direct labor as these factors are not only factors of production but used for other work in the organisation.
The indirect materials used are also included in this overhead which cannot be traced easily. Some of the manufacturing costs are maintenance, repairs on production, heat light, property tax, depreciation and insurance on manufacturing facilities. These costs are also called as factory overhead and factory burden.
Answer:
A) shut down; losses; $15,600
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry. Firms earn zero economic profit in the long run.
If in the short run, price is less than average variable cost, the firm should shut down. In this question, price ($10) is less than average variable cost ($18). The firm should shut down in the short run.
Profit or loss = Total revenue - Total cost
($10-$23) x 1200 = -$15,600
The firm is earning a loss because average total cost in greater than price.
I hope my answer helps you
Answer:
a. the use of deposits to extend loans and undertake investments.
Explanation:
When you deposit money at a bank, they do not just hold on to all that money. They will loan some of it out to other people and charge them interest for borrowing it. They will also use some of it to purchase investments that earn returns (money). This is the most lucrative source of earnings for commercial banks.
The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of 1.8 percent of its assets.
<h3>What do you mean by Duration Gap?</h3>
Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.
Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.
Thus, in this case, If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of 1.8 percent of its assets.
Learn more about Duration gap here:
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This question is an opinion so pick which one you think is the most important then explain why. Hope this helps.
