Savings usually have positive impacts on economic growth of a nation. Firstly, increase in the amount of money saved increase the amount of money that are available in the banks which can be used for investment purposes that will benefit the economy. Secondly, high saving rate in an economy increases the ability of that economy to recover from inflation and recession. Personally and nationally, saving helps to cope better with economic and financial down turns.
Answer:
$ 90000
Explanation:
Given :
The normal selling price of an industrial solvent by Wilson Corporation = $ 100 per barrel.
The variable cost per barrel = $ 40
Total fixed cost of the company = $ 900,000 per month.
Number of barrels in excess = 30,000 per month
Number of barrels the buyer wants to buy = 5000 barrels
New fixed cost = $ 60,000
The increased variable cost is $ 10 per barrel over the normal variable cost.
Now if this special order is accepted, the operating income of the company would increase by an amount of $ 90,000.
Goldsmiths increased money supply by cheating out their competitors, and being the best at what they did.
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