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yKpoI14uk [10]
3 years ago
9

Cody Manufacturing started doing business on January 1st of the current year. Cody estimates that its sales will be 9,000 units

in the first quarter, 7,000 units in the second quarter, 14,000 units in the third quarter, and 12,000 units in the fourth quarter. Cody's selling price is set at $20 per unit and is not expected to change during the year. Cody intends to have 10% of the next quarter's sales in its ending inventory each quarter. How many units should Cody budget for second quarter's production?A. 6,300 units. B. 9,700 units. C. 7,700 units. D. 7,000 units. E. None of the above.
Business
1 answer:
uranmaximum [27]3 years ago
4 0

Answer:

cool

Explanation:

i like it

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The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.

If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.

As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.

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