Variable cost vary in direct proportion to business volume (quantity sold or quantity produced)
Fixed cost remain constant regardless of sales or manufacturing volume.
According to question if sales are increased by 1200 units.current year sale will be 11200 unit .
Suppose Wesson have a variable cost of $6 per unit and fixed cost of $1000.
Cost of 10000 units are :-
Variable cost is 60000(10000*6)
Fixed cost is 1000.
Cost of 11200 unit are :-
Variable cost is 67200(11200*6)
Fixed cost is 1000
So if sales are increased by 12%. Variable cost are increased by 12%(67200-60000). Fixed cost remain the same at 1000 regardless of sales increased
Therefore,
Variable cost increases, Fixed cost remains constant. Answer is choice (e)
A BMW can drive for at least 300,000 miles because, it Depends on how high maintained it is. It also depends on the daily gas changes! Really hope this helps
A government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.
<h3>What is a
government spending?</h3>
It refers to the total money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, defense etc.
A government budget deficit arises from an excessive government spending and low levels of taxation that don't cover expenditure.
Hence, the government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.
Therefore. the Option C is correct.
Read more about government spending
brainly.com/question/25125137
#SPJ1
Answer:
The local government issues a limited number of restaurant licenses every year. (A)
Explanation:
Bertha claims that the burgers sold by Luke's Express Diner are priced a bit too high, because they enjoy monopoly power in the town; hence with the local government issuance of a limited number of restaurant licenses every year, this will break the monopoly that Luke's Express Dinner enjoy, thus weakening Bertha's arguments.
