Answer:
Check the explanation
Explanation:
1. What would the fixed costs and unit variable costs be under the proposal. Use the unit variable cost and sales price to calculate the unit contribution margin:
Fixed cost Variable cost per unit Contribution Margin per unit
(sales price – VC)
4800+4320 = 9120 22.50-8.50 = 14.00 37.50-14 = 23.50
2) Break even = 9120/23.50 = 388 Units
So the breakeven under the new proposal is 388 Units.
Answer: C. open a cash account and invest in mutual funds holding high yielding common and preferred stocks
Explanation:
Investing in Mutual funds which hold high yielding common and preferred shares is the best option here. The dividends received will be high enough but will not be taxed too much as dividend tax is limited to 15% thereby saving the investment on taxes.
Also seeing as they will require the investment in other to buy a house in 5 years, they will need something that can be easily liquidated. Mutual funds are easy to liquidate from and so their investment here can be easily withdrawn when the time comes to allow them meet the house down payment.
I am quite concerned for the drop in labor force. Though I am quite worried about our next generation and what is going to happen to the work force then :(
The answer is structural unemployment.
Long-term unemployment brought on by changes in the economy is referred to as structural unemployment.
Even while there are open positions, there is a mismatch between what employers require and what the current workforce can provide.
Long-term structural unemployment typically requires significant reform to reverse.
Technology has a tendency to make structural unemployment worse by marginalizing some employees and making some jobs, like manufacturing, obsolete.
Additional to the business cycle, other factors contribute to structural unemployment. This implies that structural unemployment can persist for decades and that drastic change may be required to address the issue.
Hence, The kind of unemployment that exists when there is a mismatch between a worker's skills and the jobs or the location of jobs available is structural unemployment.
Learn more about unemployment:
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