Investments can lead to more demand for goods. Investment means an increase in capital spending and is a component of Aggregate Demand (AD), if there is an increase in investment it will help to boost AD and therefore economic growth.
Answer: exclusive
Explanation: Exclusive distribution refers to the distribution system in which the company allows only some retailers exclusively to distribute their product in a particular geographic region.
In the given case, McDonald's is offering franchise to an existing franchisee of the company. Thus, we can conclude that the above case is an example of exclusive distribution system.
Answer:
B. at the intersection of supply and demand
Explanation:
Equilibrium is a market condition where there no excess or shortage in demand and supply. It is when the quantity demanded matches the quantity supplied. At equilibrium, buyers and sellers are happy with the prevailing prices.
In a graph showing the demand and supply curve, the equilibrium point is the intersection of the supply and demand curve.
Answer and Explanation:
The computation is shown below:
1. Overhead rates
For Molding Deptt
= Total Estimated overhead ÷ Total Machine hours
= $400,000 ÷ 5,000
= $80 per machine hour
For Polishing Deptt
= Total Estimated overhead ÷ Total Labor hours
= $80,000 ÷ 20,000
= $4 per machine hour
2. Overheads assigned to Form A is
= (80 × 3500) + (4 × 5000)
= $300,000
Overheads assigned to Form B is
= (80 × 1500) + (4 × 15000)
= $180,000
Now
Overhead cost per unit
Form A = $300,000 ÷ 30,000 = $10 per unit
Form B = $180,000 ÷ 50,000 = $3.6 per unit
