Answer:
$15,000,000
Explanation:
The local government comes under the control of state directly. The amount received from local government should be reported in state's investment trust fund.
Answer:
If linen department is dropped operating income of the company will decrease.
Explanation:
That is because the cotrollable margin of the department is positive:
controllable margin = contribution margin - controllable fixed costs
$605,000-($800,000-380,000) = 185,000
That means that the Linen department helps to reduced fixed cost that are not generated by this department and that will keep existing wether the department is closed or not.
In addittion the Hardware department will loose 19% of its sales if the Linen department is closed. Thus will result in a reduction of the cntribution margin of the hardware deparment too.
Answer: The opportunity cost of moving from point B to point C is the 2 units of butter that are given up to gain 1 additional gun. When an economy is producing at a point on its production possibilities curve, the economy is using its resources fully and efficiently, e.g. .
