Answer:
Net operating income= $207,500
Explanation:
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
<u>First, we will determine the total unitary variable overhead:</u>
total unitary variable overhead= 90 + 25= $115
<u>Now, we can calculate the total contribution margin:</u>
Total CM= 11,500*(220 - 115)
Total CM= $1,207,500
<u>Finally, the net operating income:</u>
Net operating income= 1,207,500 - 600,000 - 400,000
Net operating income= $207,500
<span>The rules, or guidelines, for people to follow when using software are called procedures. Procedures are the established way of doing something, such as a surgical operation.</span>
Answer:
Decrease in supply
Explanation:
When a government increases taxes it means that cost of production increases. Suppliers will have no choice but to increase prices at all levels of quantity demanded. This results in a decrease in supply because suppliers will not be able to maintain supply at all price levels.
Supply curve will shift to the left. Find attached an illustration.
If the market for tennis balls was in equilibrium an increase in taxes will result in decrease in ability of supplier to provide the good at all price levels so supply shifts to the left.