The demand of hurricane supplies goes down.
Answer: Market allocates goods effectively.
Explanation: Effective market allocation is the economic market interaction discussed in this case study. As there was a storm and the power lines got down it was obvious that the demand for the batteries and flashlights will increase and the stock became insufficient but the market forces came into action leading to increase in supply and restoring demand and supply to equilibrium level .
Answer:
b. changes in the same direction and in direct proportion to changes in operation activity.
Explanation:
Variable costs are expenses that vary with changes in production level. A variable cost is attached to the production of a particular product or service. An example of variable cost is the raw material expense. As the production level rises, more raw materials will be needed for production.
The relationship between variable costs and output level is direct and proportional. An increase in output requires more materials and other consumables. As variable costs are associated with the production process, an increase or decrease in production level results in a similar or increase or decrease in variable costs.
Answer:
Americans with Disabilities Act
Explanation:
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Answer:
b. $(132,000)
Explanation:
west
Sales 478500
less: variable costs 327300
Contribution margin 151200
less: Traceable fixed costs <u>147600</u>
Effect on net operating income 3600
company present net operating
loss is (-159600 + 31200) -128400
less: Dropping the west Division
would reduce net operating
income by 3600
The overall company net
operating loss would be -132000
