<span>The direct organizational plant for a routine message requires that you present the primary ideas first and then any supporting evidence. This plan emphasizes deduction, understanding the implications (details) of a central idea rather than presenting particulars first building toward the central idea of a message.</span>
<span>Two oil shocks, an expansive monetary policy, and growing competition as Europe and Japan recovered from the devastation of World War II.
By the end of the decade, the country went into what came to be called
stagflation, a combination of no growth and rising inflation. In effect, the country had the worst of both worlds.
President Carter’s appointment of Paul Volcker as Federal Reserve Chair started the path to change. He restricted the money supply in a war that drove up unemployment but eventually tamed inflation.
The Reagan presidency started with cuts in spending and income taxes in what was called a ‘supply-side experiment.’
The intent was to stimulate saving, work, and investment. The emphasis that the supply-side approach put on incentives is now a more prominent part of economic thinking, but the experiment itself led to larger fiscal deficits.</span>
Answer:
The firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)
Explanation:
Normal profit equals zero economic profit or when total revenue equals
the addition of explicit cost and Implicit cost. Implicit cost is the opportunity cost.
Explicit cost = $200,000 + $75,000 + $30,000 + $20,000 + $35,000
=$360,000
Implicit cost is $90,000
Total revenue is $360,000
Normal profit = $360,000 - ($360,000 + $90,000)
$360,000 - $450,000
-$90,000.
This means the firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)
$42.25
- trade prices that are shown on the tape DO NOT include commission.
Answer:
Overall operating profit will decrease by $25,000
Price is $32.5
Explanation:
A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.
In a shut down decision , the following relevant cash flows should be considered:
1. Lost contribution from the product to be shut down
2. Savings in fixed directly attributable to the product under consideration.
$
Lost contribution from products 2
(15-10)× 20,000 (100,000)
Savings in direct fixed cos <u> 75,000</u>
Net loss from the drop of product 2 <u> (25,000)</u>
Overall operating profit will decrease by $25,000
Mark up is the proportion of cost as profit
Price = cost + (mark-up %× cost
Price = 25 + (30%× 25) = 32.5
Price is $32.5
