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3 years ago

According to the long-run Phillips Curve:

Business

1 answer:

Oxana [17]3 years ago

7 0

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

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The BE in units for CompuTech in 2021?

zloy xaker [14]

Question Completion:

Assuming the following: (i) the sales price for each CompuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is $45,000.

Q1: What is the BE in units for CompuTech in 2021?

Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year?

Answer:

CompuTech

Answer 1: The BE (Break-even Point) in units for CompuTech in 2021 is:

1,800 units.

Answer 2: If the variable cost of materials rose by 10%, the BE will increase to:

2,000 units.

Explanation:

a) Data and Calculations:

Selling price per unit = $50

Direct material cost per unit = $25

Contribution per unit = $25

Fixed Cost = $45,000

Break-even point = Fixed Cost/Contribution per unit

= $45,000/$25

= 1,800 units

b) BE if the variable cost of materials rose by 10% during the year:

Selling price per unit = $50

Direct material cost per unit =$27.50 ($25 * 1.1)

Contribution per unit = $22.50

Fixed Cost = $45,000

Break-even point = Fixed Cost/Contribution per unit

= $45,000/$22.50

= 2,000 units

c) The break-even point in units represents the quantity at which the costs of production equal the revenues for the goods. It is the point where no profit is made, but all the costs, including fixed costs, are covered by the revenues.

8 0

3 years ago

A marketing researcher wants to estimate the mean amount spent (S) on Amazon.com by Amazon Prime member shoppers. Suppose a rand

Kazeer [188]

Answer:

The answer is below

Explanation:

Given that mean (μ) = $1500, standard deviation (σ) = $200, sample size (n) = 100

confidence (C) = 95% = 0.95

α = 1 - C = 1 - 0.95 = 0.05

α/2 = 0.05 / 2 = 0.025

The z score that corresponds with 0.475 (0.5 - 0.025) is 1.96. Therefore the margin of error (E) is:

$E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*\frac{200}{\sqrt{100} } =39.2\\$

The confidence interval = (μ ± E) = (1500 ± 39.2) = (1500 - 39.2, 1500 + 39.2) = (1460.8, 1539.2)

The confidence interval is between $1460.8 and $1539.2.

b) Given that mean (μ) = $1500, standard deviation for 100 samples = σ /√n = $200,

confidence (C) = 95% = 0.95

$E = z_\frac{\alpha}{2} *\frac{\sigma}{\sqrt{n} } \\\\E=1.96*200=392\\$

The confidence interval = (μ ± E) = (1500 ± 392) = (1500 - 392, 1500 + 392) = (1108, 1892)

The confidence interval is between $1108 and $1892.

4 0

3 years ago

A manufacturing division has an average assets of $1,800,000 and income of $720,000. The division's return on investment is

Natalija [7]

Answer:

40%

Explanation: 720,000/1,800,000 = .4 x 100 = 40%

7 0

3 years ago

This year Burchard Company sold 40,000 units of its only product for $25 per unit. Manufacturing and selling the product require

Svetradugi [14.3K]

Answer:

Plan 2 is the best.

Explanation:

Giving the following information:

This year Burchard Company sold 40,000 units of its only product for $25 per unit.

Manufacturing and selling the product required $200,000 of fixed manufacturing costs and $325,000 of fixed selling and administrative costs.

Its per unit variable costs follow:

Material $ 8.00

Direct labor 5.00

Variable overhead costs 1.00

Variable selling and administrative costs 0.50

Next year the company will use a new material, which will reduce material costs by 50% and direct labor costs by 60% and will not affect product quality or marketability.

Direct material= 4

Direct labor= 2

Plan 1:

Sales= 40,000*25= 1,000,000

Variable costs= (4+2+1+0.5)*40,000= 300,000 (-)

Contribution margin= 700,000

Fixed costs= 525,000 (-)

Net operating income= 175,000

Plan 2:

Sales= 36,000*(25*1.2)= 1,080,000

Variable costs= 270,000

Contribution margin= 810,000

Fixed costs= 525,000 (-)

Net operating income= 285,000

Plan 2 is the best.

5 0

4 years ago

This table shows the number of cookies several bakeries sell each day. Bakery Number of Cookies Sold Mrs. Track’s 90 Chips 100 T

Serggg [28]

Answer: d. Uncle John's

Absolute Advantage refers to the ability of an individual, company, region or country to produce a particular product or service at a price lower than that of his or her or its competitors.

When the price for the company's products are lower in comparison to other similar products, the demand for its products are more and it's able to sell more number of units than its competitors.

In this case, Uncle John's has the absolute advantage since it sold the most number of cookies (125)

6 0

3 years ago

Read 2 more answers