Answer:
Annual financial disadvantage = $ (669,600)
Explanation:
Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.
The relevant costs of this decision to disconnected includes the following:
- The variable cost of making the product = $19 per unit
- Sales revenue at a price of $25
- Savings in avoidable fixed costs (102,000-72,000) = 30,000
Annual financial advantage
$
Lost contribution $(25-19)× 4,300 units = (85,800)
Saving in fixed cost = <u> 30,000</u>
M<em>onthly net loss </em><em><u> 55,800</u></em>
Annual financial disadvantage
Monthly net loss × 12 months
= (55,800) × 12
= $ (669,600)
If Maria's opportunity cost of producing shoes is higher than nikki's opportunity cost of producing shoes, then Nikki has a comparative advantage in the production of baellet shoes.
What is meant by production?
Making something out of parts or raw materials is the act of producing something. In other words, manufacturing uses inputs to create an output that is suitable for consumption—a good or product with value for a consumer or end-user.
Production is the process of combining various immaterial inputs (plans, knowledge) with material inputs to create something that is intended for consumption (output). It is the process of producing an output, a good or service that has value and enhances people's usefulness.
To learn more about production click the given link
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Answer:
affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.
Explanation:
This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:
MV = PQ
- M = quantity of money
- V = velocity of money
- P = price level
- Q = quantity of goods
Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:
- the velocity of money has to be constant (AND IT IS NOT CONSTANT)
- real output is independent on money supply (NOT TRUE)
- causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)
Answer:
Explanation:
divide the total taxes 960 by 365 (number of days in the year) to get per day tax which is 2.63$. Days from 1 January to April 15 are 105, these 105 days times 2.63$ =276.15.
so, now we have calculated the amount of taxable by seller at closing date and buyer will receive the same from seller i.e 276.15 $ .
