Answer:
Explanation:
Economics is a social science needed with the production, distribution, and consumption of goods and services. It studies how we, businesses, governments, and nations make choices about how to assign resources.
Answer:
a decrease of $39,000.
an increase of $39,000.
a decrease of $19,500.
an increase of $19,500.
The correct option is the last one,an increase of $19,500
Explanation:
The impact on net operating income when the department is eliminated in Fabio Corporation is the company would lose the contribution margin of $39,000 and avoidable fixed cost,hence overall effect of the elimination is the difference between the contribution margin lost and the avoidable fixed costs which is computed thus:
Lost contribution margin $39000
Unavoidable fixed cost $19,500
Total fixed costs
avoidable fixed cost=$78,000-$19,500=$58,500
decrease in overall net operating income=$58,500-$39,000=$19,500
Answer:
C) Auction with reserve.
Explanation:
During an auction with reserve if the auctioneer is not able to reach a minimum price set by the owner of the objects that are being auctioned, then the owner has the right to withdraw his objects. Usually the reserve price is set before the auction takes place but may be changed during the auction depending on the actual bids. The reserve price is commonly not disclosed to the bidders in an auction.