Answer:
A policy instrument (variable directly under the control of policy makers)
Explanation:
The Fed's discount rate is a monetary policy tool used to expand or contract the money supply.
When the Fed lowers the discount rate, it is engaging in an expansionary monetary policy which will increase the money supply, lower interest rates and increase total aggregate demand.
When the Fed raises the discount rate, it is engaging in a contractionary monetary policy which will decrease the money supply, increase interest rates and fight rising inflation.
Answer:
1.
Selling Price $156
2.
Variable cost $101.25
Break-even 9,500 units and $1,482,000
Explanation:
Compposit unit unit is a unit made according to the propostion to sale. Different products are combined to make a sales mix for composit unit.
1.
Selling price per composit unit = [ ( 7 x 111 ) + ( 3 x 261 ) ] / 10 = 1560 / 10 = $156
2.
Variable cost per composit unit = [ ( 7 x 68 ) + ( 3 x 180.5 ) ] / 10 = 1,017.5 / 10 = $101.75
Contribution per composit unit = Selling Price - variable cost = $156 - 101.75 = $54.25
Break-even Point = Total Fixed cost / Contribution per unit = $515,375 / 54.25 = 9,500 units
Break-even Point ($ value )= 9,500 x 156 = $1,482,000
Answer:
Standard cost per pound= $34.21
Explanation:
The standard cost is the sum of direct material, direct labor, and total overhead. We will calculate each separate.
Direct material:
10 ounces cookie mix for $0.80= $8
5 ounces of milk chocolate for $4= $20
1 ounce of almonds for $12 the pound= $0.75
1 pound= 16 ounces
1 ounce= 0.0625*$12= $0.75
Direct labor:
1 minute in the mixing department
2 minutes in the baking department.
Mixing= $14.40* (1/60)= $0.24
Baking= $18*(2/60)= $0.6
Overhead:
Variable overhead is applied at a rate of $32.40 per DLH
Fixed overhead is applied at a rate of $60.00 per DLH.
Variable= 32.40 * (3/60)= $1.62
Fixed= 60* (3/60)= $3
Standard cost per pound= (8 + 20 + 0.75) + (0.24 + 0.6) + (1.62 + 3)= $34.21