Marigold Corp. provides financial consulting and has collected the following data for the next year’s budgeted activity for a le
ad consultant. Consultants’ wages $100000 Fringe benefits $32500 Related overhead $27500 Supply clerk’s wages $17500 Fringe benefits $3000 Related overhead $19000 Profit margin per hour $20 Profit margin on materials 15% Total estimated consulting hours 5000 Total estimated material costs $158000 A consulting job takes 20 hours of consulting time and $180 of materials. The client’s bill would be $1220. $1072. $892. $1292.
The computation of cyclical unemployment is shown below:
Cyclical unemployment is
= Actual rate of unemployment - the natural rate of unemployment
= 6% - 5%
= 1%
We simply deduct the natural rate of unemployment from the Actual rate of unemployment so that the cyclical unemployment could come and hence the difference is called as a cyclical unemployment, the same is to be considered
