<span>During the recession witnessed in early 2001, many firms laid off their employees and downsized. The reason for the downsizing of employees from these firms in 2001 was the incompetency and poor performance of the employees. It may sound mean but to the company, this is advantageous since they can reduce the costing while at the same time maintain or increase the final goods.</span>
Answer:
The correct answer is option D.
Explanation:
As the price of product increases the consumers will demand less because they now have to pay more than earlier.
The supply however is directly related to price level and will increase with the increase in price. The producers will produce more in order to enjoy higher revenue and profit.
This would encourage the other potential firms to enter the market, to earn higher profits.So more suppliers will enter the market.
However, this would lead to increase in supply of output. The excess supply will cause the price to fall eliminating higher profits.
Answer:
C. $13,100U.
Explanation:
The cost variance is given by the difference between the actual cost of commissions and the projected cost of commissions of 30,000 units at $8 each:
Since the actual cost is higher than the anticipated cost, the balance is unfavorable.
Gridiron would report a cost variance of: C. $13,100U.
