Cost behavior is useful to managers for all the following except

1 answer:

8 0

if a company is operating at the full production capacity, then to fulfill more demand, the company will have to invest more in the production line.

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When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living.

mel-nik [20]

A. True

The CPI is a measure of the cost of a "basket" of typical consumer goods, so if the cost of these goods goes down most families will spend less on average.

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3 years ago

List one big thing that you would like to buy. What short-term, mid-term, and long-term goals would you need in order to make th

OleMash [197]

I would like to buy a mansion
short term goals will be, work at McDonald until 40
mid-term goals will be do a online job
Long-term goals will be get a great paying job and finish High school and collage.
hope this helps.

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3 years ago

Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?

vladimir1956 [14]

Answer: Interest rate can vary

Explanation: Based on the description of Greg's and Joyce's mortgage loan, the key term is the adjustable nature of the loan used to finance the mortgage. Being adjustable simply means not fixated. Hence, the interest on the loan is bound to change throughout the entire period of the loan. This type of mortgage loans are called ADJUSTABLE RATE MORTGAGE or FLOATING mortgage. The change in the interest rate applied on the outstanding balance of is usually at intervals which could be annually, semianually or monthly basis as the case may be.

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3 years ago

An Engel curve:________.

creativ13 [48]

Answer:

A. slopes upward for normal goods and downward for inferior goods.

Explanation:

In the case of Engle curve it plots the relationship between income and demand for a good.

In the case of the normal goods, as the income rises the demand also rises while on the other hand in the case of inferior goods, the income rises the demand false

So it sloped upward for the normal goods and slop downwards for the inferior goods

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3 years ago

The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently,

vekshin1

Answer:

The increase in gross profit is $12,374.93

Explanation:

The increase in sales due to purchasing this new equipment is 25% of current sales figure of $750,000

increase in sales=$750,000*25%=$187,500

variable cost on the increase in sales is 55%=$187500 *55%=$103,125

The annual depreciation charge on the new equipment=cost of the new equipment-salvage value/useful life

cost of the new equipment is $357,500.37

salvage value is $0

useful life of the new equipment is 5 years

annual depreciation charge=($357,500.37-$0)/5=$ 71,500.07

Increase/(decrease) in annual gross profit=$187,000-$103,125-$ 71,500.07 =$12,374.93

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3 years ago