Answer:
Actual Operating costs $231,250
Planned Operating Costs budgeted = $ 235058
Planned Operating Costs at actual level = $ 232430
Explanation:
The Planned costs are the costs estimated at the planned level of activity.
The actual costs are costs that actually occur.
But flexible costs are those which are planned ( determined) at actual level of activity.
Canniff Air
Actual Planned
Operating costs $231,250
The cost formula for plane operating costs is $56,960 per month plus $2,634 per flight plus $6 per passenger.
Planned Operating Costs= $56,960+ 2634 *67 flights + 6*270 passengers
= $ 56960 + 176478+ 1620
= $ 235058
Actual Operating Costs = $56,960+ 2634 *66 flights + 6*271 passengers
= $ 56960 + 173844+ 1626
= $ 232430
We put the values in the given formula to obtains these costs both planned and actual.
The Keynesian model focuses more on short-term fluctuations caused by business cycles and the neoclassical model focuses more on short-term fluctuations caused by business cycles.
Neoclassical economics is long-term oriented. Key policies include: Governments should focus on keeping long-term growth and inflation under control, rather than worrying about a recession or cyclical unemployment.
Aggregate demand is a useful tool for controlling inflation.
The Keynesian model focuses on using aggressive government policies to manage aggregate demand and combat or prevent recessions. Keynes developed his theory in response to the Great Depression and was highly critical of early economic theory, which he called classical economics.
Learn more about Keynesian at
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Answer:
YES - When marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.
Explanation:
Marginal cost (MC) is the cost of producing an extra unit of output while Average variable cost (AVC) is the cost per unit of output produced.
When MC is below AVC, MC pulls the average down. This means that when MC is falling, AVC is falling
When MC is above AVC, MC is pushing the average up; therefore when MC is rising, AVC is rising.
The conclusion is that MC and AVC have a direct relationship and a rise in one will cause a rise in the other
, therefore when the marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.
Answer:
1.011
Explanation:
The two differentiation for the two parameters such as units of labor and units of capital can be represented as shown below:
If z (production) = f(x,y) = x^0.75y^0.25
Where: x represents the units of labor and y represents the units of capital.
Thus, using differential, the change in production will be:
= 0.75x^(0.75-1)y^0.25 + 0.25(x^0.75)y^(0.25-1) = 0.75x^(-0.25)y^0.25 + 0.25x^0.75y^(-0.75)
x = 25+1 = 26; y = 19
dz = 0.75*26^(-0.25)*(19^0.25) + 0.25*26^0.75*(19^(-0.75)) = 0.75*0.443*2.09 + 0.25*11.51*0.11 = 0.694+0.317 = 1.011
Answer:
$26,300
Explanation:
Depreciation Base is the total amount charged to expenses over an asset's useful life.
In Straight line method of Depreciation:
Depreciation Base = (Cost of Asset - Salvage Value)
Cost of Asset $28,000 + $200 + $125 + $500 + $475
Cost of Asset = $29,300
Depreciable Base = $29,300 - $3,000
Depreciable Base = $26,300
