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3 years ago

In the short run,

Business

1 answer:

Neko [114]3 years ago

7 0

Answer:

The correct answer is: unemployment and inflation are negatively related. In the long run they are largely unrelated problems.

Explanation:

According to the Philips curve, in the short run, inflation and unemployment rate are inversely related. This implies that when inflation decreases, the unemployment rate increases.

This is indicated by the downward-sloping Phillips curve. When the government adopts a contractionary policy to reduce inflation, unemployment will increase.

In the long run, the Phillips Curve will be a vertical line at the natural rate of unemployment. The inflation rate is not related to the unemployment rate in the long run.

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Barnes Company reports the following operating results for the month of August: sales $305,000 (units 5,000); variable costs $21

Ostrovityanka [42]

Answer:

1. $30,500;

2. $30,000;

3. $22,000;

=> Option 1 produce the highest net income.

Explanation:

We have sell price per unit = 305K /5K = $61

1. Increase selling price by 10% with no change in total variable costs or sales volume:

Sell price = 61 x 1.1 = $67.1

Sales revenue = 67.1 x 5,000 = $335,500

Increase in sales revenue = 335.5K - 305K = $30,500

As costs remains the same, Net income will increase as much as the increase as sales revenue which is $30,500.

2. Reduce variable costs to 60% of sales:

New variable cost = $305,000 x 60% = $183,000

Saving in variable cost = 213K - 183K = $30,000

As fixed cost and sales revenue remain the same, net income will increase as much as the saving in variable cost which is $30,000

3. Reduce fixed costs by $22,000:

As variable cost and sales revenue remain the same, net income will increase as much as the saving in fixed cost which is $22,000

6 0

3 years ago

If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of pr

FrozenT [24]

Answer:

4 million houses

Explanation:

Opportunity cost is the forfeited benefit as a result of choosing one option over others. Its value equals the cost of the next best alternative.

The cost of constructing a new home is $150,000. If the Federal Defence has a budget of $600 billion, the opportunity cost of spending that amount will be the equivalent number of units that can be built by the amount.

To calculate the number of units= $600 billion divided by $150,000

= $600,000,000,000/ $150,000

=4,000,000

=4 million units

6 0

4 years ago

The normal time for a repetitive task that produced two work units per cycle is 3.0 min. The plan uses a PFD allowance factor of

VLD [36.1K]

Answer:

A.- 3.45 min to produce two work units

B.- In a 8-hout shift at standard performance 274 work units are produced

Explanation:

The Standart tiem per piece would be:

$StandardTime=NormalTime*(1+PFD)$

Given your numbers it will be:

$3 * (1 + 0.15)= 3.45$

This is the time per cycle to produce 2 work units

Now, in an 8 hours shift there are 480 minutes. Dividing between the standard time of a cycle we get the standard performance

$\frac{480}{3.45} = 137.14$

Rounding, we will be getting 137 cycles

Lastly, because each cycle produce 2 work units we are having a total of 274 Units

3 0

3 years ago

Jeffrey Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per uni

Whitepunk [10]

Answer:

The incremental revenue of the proposed change = $ 50,000

8 0

3 years ago

Read 2 more answers

A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually

Shalnov [3]

Answer:

1) True

2) D. Total fixed costs

Explanation:

1) The manager's evaluation should be based on a flexible budget, so the statement is true.

The standard quantity of direct materials used should be based on actual production for a correct variance analysis.

2 ) Total fixed costs remains the same when comparing a flexible budget to a master budget.

Total fixed costs do not change in total within relevant range of production.

3 0

3 years ago