Answer:
Aston has given the information required to meet division profit objective. Increasing the profit objective is common goal of every manager. Here manager wanted to meet profit objective by minimising fixed cost which is not wrong motive. Whether the excess production can be sold in the market. If there is a chance to sell, more production can be made.
Absorption costing means that all of manufacturing costs are absorbed by units produced. It calculates every cost on no. of units produced but it does not mean to increase production only in order to match income objective or to reach this goal instead of fact that inventory remains at end, and sale of that increased production does not take place and income objective met because of the lower cost per unit.
The money multiplier concept is an important tool for both expansionary and contractionary monetary policies for any central bank such as the U.S. Federal Reserve Bank.
<h3>What is the money multiplier concept?</h3>
The money multiplier concept describes the quantity of money created by banks through the interaction of bank deposits and reserve ratios.
When the U.S. Federal Reserve wants to increase the money supply, it reduces the reserve ratio and vice versa.
Thus, the money multiplier concept is an important tool for both expansionary and contractionary monetary policies for any central bank such as the U.S. Federal Reserve Bank.
Learn more about the money multiplier concept at brainly.com/question/16777479 and brainly.com/question/27464330
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Break-even analysis is the process used to determine the profitability of a product at various levels of sales.
Answer:
Average fixed cost= $1.43
Explanation:
Giving the following information:
Production costs:
Rent= $5,000
Direct labor= $2,500
Direct material= $5,000
Usually, the direct labor cost is variable. In some conditions, it is a fixed cost. <u>We will consider it as a variable cost.</u>
Total fixed cost= 5,000
Average fixed cost= 5,000/3,500
Average fixed cost= $1.43
Answer:
(c). no longer satisfies a sufficient number of customers
Explanation:
Product deletion refers to removal or discontinuance of a product from the product line when such a product has been consistently incurring losses since a number of years and it's further continuation would adversely affect the other products and profitability.
A product is usually deleted from the product line on the grounds of it's failure in satisfying a sufficient number of customers.
Hence, the correct option is (c). no longer satisfies a sufficient number of customers.
