Here is you're answer:
Wages is the amount of money a person gets paid for labor, derived demand is a demand for more money because of the increase of labor the workers have to do. To conclude the relationship between the two is that "if the worker gains more labor they would make a derived demand to increase their wage."
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Answer:
$35,000
Explanation:
An asset is said to be impaired when the carrying amount is more than the recoverable amount. The recoverable amount is the higher of the value in use which is the present value of the future cash flows expected from the use of the asset and the fair value less cost to sell of the asset.
The amount of impairment to be recognized is the difference between the book value of the asset and the fair value. This will ensure that the asset is not carried at an amount higher than it's fair value.
Impairment loss
= $160,000 - $125,000
= $35,000
If demand changes greatly with a small change in price, we say the demand is elastic.
At the break-even point, the total sales and the total cost is said to be equal. Therefore, there is no profit or loss. We set up the equation as follows:
Profit/Loss = (Unit Contribution Margin) (Units) - (Fixed Costs) = 0
Unit contribution margin is (0.20)(1.50) = 0.30
Substituting the known values gives;
0 = (0.30)(400,000) - FC
FC = (0.30)(400,000)
FC = $120,000
<span>Therefore, the total fixed costs would </span>$120,000.<span>
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Answer:
The correct option is (d)
Explanation:
Real wages are nominal wages less inflation. Nominal wage is not adjusted for inflation. Everyone had expected an inflation of 3% per year while increase in wages per year is 5%. This implied that they will expect real wage of 2% (5% - 3%) per year.
However, it turned out that inflation was 5% per year. This means that real wages were actually 0% (5% - 5%). There was no increase in real wages at all. So, they received lower real wage (actually nil) as against expected real wage of 3% per year.