D Yhe client has passed away and his or her will Cannot be located
Answer:
Explanation:
Direct material per unit produced = 2.50
Direct labor per unit produced = 1.50
Factory overhead:
Factory overhead - $120,000
80,000 units were produced
Fixed factory overhead = 120,000/80,000=1.5
Also, Factory variable overhead per unit produced = 1
Total factory overhead = (120000/80000+1) = 2.50
Standard cost of manufacturing a unit of product = 2.50+1.50+2.50 = 6.50
The degree of operating leverage can be calculated by subtracting variable costs from sales and dividing it by sales minus variable costs and fixed costs.
The degree of operating leverage is
(3,800−300)÷(3,800−300−1,000)
=1.4
Answer:
If the U.S. economy fast paced growth causes inflation to rise, this will make the value of the U.S. dollar go down, because more U.S. dollars will be needed to buy the same amount of goods and services (including foreign currency) since what inflation causes is a loss of purchasing power of the currency.
For this reason, international investors will demand less U.S. dollars in the foreign exchange market, including British investors.
While the supply of U.S. dollars will continue to grow (because inflation is primarily caused by a rise in the money supply) demand will continue to fall, both against the British pound, and other currency. This will further lower the value of the U.S. dollar in the foreign exchange market, while appreciating the British Pound at the same time.
