Explanation:
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Answer:
The operating income will be:
Total contribution($2.50 x 29,000) = 72,500
Less: Fixed cost = 31,200
Operating income = 41,300
Explanation:
The contribution per unit is $2.50. This per unit contribution will be multiplied by the number of units produced and sold in order to obtain total contribution. Operating income is the excess of total contribution over fixed cost.
Answer:
1. a) War increases demand for loanable funds, demand curve shifts RIGHT. (Increase in real interest rate)
b) Private investors are optimistic about the economy (i.e. investment opportunities). Demand for loanable funds increases, demand curve shifts RIGHT. (Increase in real interest rate)
c) Tax increase means a decrease in the supply about loanable funds. Supply curve shifts LEFT. (Increase in real interest rate)
2. would most likely increase the supply of loanable funds. If Americans are saving more, then they are spending less money and investing more of it. Remember--saving does not mean "not using it". It means investing it instead of consuming.
3. The interest rate will fall. There is a surplus of loanable funds and the real interest rate will reflect this surplus by falling.
4. decrease in the demand for loanable funds. When output decreases, the return on investment for new projects decreases and investors are less in need of money to fund their ventures.
5. decrease the supply for loanable funds. If they are consuming more, they are saving less.
6. Increase / Decrease. When interest rates increase, growth is reduced because funding economic ventures is now more costly. Sometimes the fed will increase interest rates when it anticipates inflation to increase in order to mitigate economic growth.
Hope this was helpful!
Explanation:
Answer : A
Scenario Analysis is somewhat like a what-if analysis - i.e. it assess the outcome of a project by varying the key inputs for revenues and costs to arrive at a reasonable range for a project's anticipated outcome. Companies may alter several key variables at the same time to arrive at a scenario or scenarios.