The computation follows:
1. Solve first for the variable cost per unit.
Direct materials $ 6.00
<span>Direct labor $ 3.50
</span>
<span>Variable manufacturing overhead $ 1.50
</span>
<span>Sales commissions $ 1.00
</span>
<span>Variable administrative expense $ 0.50
</span>
<span>= $12.50 variable cost per unit
2. Then deduct the selling price to the variable cost per unit, to get the contribution margin.
</span><span>22 - 12.50 = $9.50 CM per unit</span>
Oil level, tire presseure
Answer: a decrease in government expenditure and an increase in taxes by a decision of Congress; a decrease in transfer payments and an increase in taxes with no interference by Congress (D)
Explanation:
Discretionary fiscal policy is a government policy that changes government spending or taxes. The purpose of discretionary fiscal policy is to either expand or shrink the economy. It needs approval from the Congress and President. Its examples are increases in spending on bridges, roads, stadiums etc.
Automatic fiscal policy use spending in the form of taxes and transfer payments to automatically steady the economy. An example is when unemployed become eligible for the unemployment benefits after when losing their jobs during a recession.
