Answer:
40 pounds would be the average inventory
Explanation:
Total Order quantity= 80 pounds
Average inventory level = Order quantity / 2
= 80 pounds / 2
= 40 pounds
Hence, 40 pounds would be the average inventory
Answer:
Predetermined rates for each cost pool
Ordering = <u>$120,000</u>
240,000 orders
= $0.50 per order
Machine set-up = <u>$85,000</u>
340,000 set-ups
= $0.25 per set-up
Inspection = <u>$75,000</u>
75,000 inspections
= $1 per inspection
Explanation:
The predetermined rates are obtained by dividing the estimated overhead for each cost pool by the cost driver.
Answer:
A) Aggregate demand will increase, especially for wealthy individuals.
Explanation:
Aggregate demand would increase, especially for wealthy individuals because disposable income would increase as a result of lower tax payable.
Answer:
The answer is: B) The financial firms are too big to fail.
Explanation:
President George W. Bush thought this way when he approved the bailouts of several banks which he considered TOO BIG TO FAIL. It simply means that since financial firms are so deeply mingled together, if more big banks continue to go bankrupt, the whole financial system would collapse. That would only lead to a deeper recession.
President Barack Obama used the same logic when he bailed out General Motors and Chrysler. He thought that if those car companies stopped working, then a major portion of the country's whole manufacturing system would collapse.
Answer: Subcontracting production
Explanation:
It is cheaper for ABC Company to subcontract the jobs than to hire and fire workers as needed. Even though the cost is similar when it comes to hiring permanent workers and training them vs subcontracting them, when the company needs to produce less goods, the cost of firing the permanent employees is simply too much.
For instance, 1,000 units out of the 4,000 units in the second quarter cannot be covered by the 30 workers they have. They will need to hire 10 additional workers and training them would cost $30,000. That is the same cost they would incur if they subcontracted (30 * 1,000 units = $30,000).
What happens in quarter 4 however, when they have to let go of 10 employees because production dropped by 1,000 units? They will have to pay $50,000. If they were subcontracting, they would not have to pay a dime. It is therefore better to subcontract.
