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2 years ago

In developing a flexible budget within a relevant range of activity,

Business

1 answer:

gladu [14]2 years ago

6 0

Answer: d. it is necessary to relate variable cost data to the activity index chosen

Explanation:

The activity index shows how various activities have an impact on the cost of production.

When developing a flexible budget within a relevant range of activity, ome must relate variable cost data to the activity index chosen to ensure that it is indeed variable.

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Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced a

allsm [11]

Answer:

Option A, buy less of X and more of Y is correct.

Explanation:

The amount that Mr. Rational is going to spend = $27

Quantity of good X = 5 units

Price of good X (Px) = $3 per unit

Marginal utility of 5th unit of X (MUx) = 30

Quantity of good Y = 6 units

Price of good Y (Py) = $2 per unit

Marginal utility of 6th unit of Y (MUy) = 18

$Now \ find \ \frac{MUx}{Px} = \frac{30}{3} = 10 \\$

$Now \ \frac{MUy}{Py} = \frac{18}{2} = 9$

$Since \ the \ \frac{MUx}{Px} is \ greater \ than \ \frac{MUy}{Py}.$

So good x will be substituted for y in order to reach the consumer equilibrium.

$\frac{MUx}{Px} = \frac{MUy}{Py}$

Thus, Option a. buy less of X and more of Y is correct.

4 0

3 years ago

Economic expansion throughout the rest of the world raises the world interest rate. Use the Mundell–Fleming model to illustrate

Kobotan [32]

Answer: The answer is provided below

Explanation:

The fiscal expansion in the rest of the world will lead to an increase in the world interest rate and a decrease in the domestic investment.

As a result, a rise in the world interest rate will lead to an increase in the national income and also lower the nominal exchange rate.

The diagram has been attached.

5 0

2 years ago

Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at

lubasha [3.4K]

Answer:

VARMIT B-GONE

BUDGETED INCOME STATEMENT

sales revenue ( 90%*1500*2.4*80%*$80) $207,360

Service cost :

variable cost $17280

Maintenance and repair 15,998

Depreciation 42,000 75,278

Gross profit 132,082

marketing and administrative cost :

Marketing (variable ) 10,440

administrative (fixed)(55,000*105%) 57,750

bad debt( 2%*207360) 4,147 72,337

net income 59,745

Explanation:

service cost :

variable cost = (24,000/3600)*2592 = $17,280

maintenance and repairs = (22,000/3600)*2592 *101% = $15,998

Marketing cost = ($14,500/3600)*2592 = $10,440

7 0

2 years ago

A research report should NOT be which of the following?

melomori [17]

Which are the following

3 0

2 years ago

Mary expects the inflation rate to be 5 percent, and she is willing to pay a real interest rate of 3 percent. Joe expects the in

OleMash [197]

Answer:

Explanation:

correct

8 0

2 years ago