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3 years ago

Higher fixed costs are associated with:_____.

Business

1 answer:

VladimirAG [237]3 years ago

6 0

Answer:

a. 1 and 3.

Explanation:

Given that the operating leverage of a business firm is a sum of its fixed cost and variable cost about the way the firm's cost of business is attributed.

In this case, when a business firm has a high fixed cost, it normally requires a high number of sales to earn more profits. This is termed as "higher operating leverage." This thereby leads such business firms to have "increased risk."

Hence, It is practically correct that in business operation that when a business firm has Higher fixed costs it is associated with "higher operating leverage and increased risk"

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According to classical macroeconomic theory, changes in the money supply affect: _________.(i) nominal variables, but not real v

Stells [14]

Answer: .(i) nominal variables, but not real variables

Explanation:

According to classical macroeconomic theory, changes in the money supply affect the nominal variables but the real variable are not affected.

According to the classical macroeconomic theory, it us believed that an increase in money supply will result into a rise in the availability of money in the market, thereby increasing consumers spending which will also lead to a rise in aggregate demand which in turn, causes inflation.

Thereby the nominal variables will be changed.

7 0

3 years ago

Gut Bombs sandwich shop pays $5,000 a month in rent space and equipment. It pays each of it 10 workers $2,500 a month and spends

Vadim26 [7]

Answer:

Fixed cost per units= $2.14

Explanation:

Giving the following information:

Rent= $5,000

Direct labor= $2,500

Usually, direct labor is a variable cost that varies with production. In this case, I will consider it a fixed cost.

First, we need to calculate the total fixed costs:

Total fixed cost= 5,000 + 2,5000= 7,500

Now, the fixed cost per unit:

Fixed cost per units= 7,500/3,500

Fixed cost per units= $2.14

6 0

3 years ago

When an individual is looking to manage the reputation and policies of an organization, the commitment to doing the right thing

Studentka2010 [4]

Answer: True

Explanation: humans have been known to be insatiable. Most often than not when you do the right thing to please someone, it doesn't always achieve the purpose. So humans now have steamed up exhaustion from following the ethical standard that we no longer give a care about our personal integrity, all we want is to appear (even if feigned) to others around us that we are morally and ethically upright.

7 0

3 years ago

Decision Point: Pricing Your Bookshelf Your next task is to provide a pricing recommendation for the bookshelf system. The produ

stiks02 [169]

Answer:

Selling price= $150

Explanation:

Giving the following information:

The expected sales are 2,500 units. Production informs you that the variable costs are $50/unit. Fixed costs are $150,000.

We need to use the break-even point formula and isolate the selling price:

Break-even point= fixed costs/ contribution margin

Break-even point= fixed costs/ (selling price - unitary variable costs)

2,500= 150,000 / (X - 50)

2,500X - 125,000= 150,000

2,500X= 375,000

Selling price= $150

8 0

4 years ago

Explain where in the U.S. balance of payments an entry would be recorded for each of the following:

aleksandrvk [35]

Answer:

a. This a capital inflow and it will be recorded in the capital account in the BOP in the BOP.

b. This is an imports of merchandise and it will be recorded under current account in the BOP.

c. This is also an import of merchandise and it will be recorded under current in the BOP.

d. This is an exports of merchandise and it will be recorded under current in the BOP.

e. This an outflow of capital and it will be recorded under capital accounts in the BOP.

f. This is a purchase or import of service and it will be recorded under current account in BOP.

g. This is a sale or export of service and it will be recorded under current account in the BOP.

Explanation:

Balance of Payment (BOP) refers to the statement in which every monetary transactions made between residents of a country and the rest of the world during a specific period are recorded.

Balance of payments records the inflows and outflows of capital which monitors under capital account, imports and exports of merchandise and service which are monitor under current account, and financial transactions.

Therefore, we have:

a. A Hong Kong financier buys some U.S. corporate stock.

This a capital inflow and it will be recorded in the capital account in the BOP in the BOP.

b. A U.S. tourist in Paris buys some perfume to take home.

This is an imports of merchandise and it will be recorded under current account in the BOP.

c. A Japanese company sells machinery to a pineapple company in Hawaii.

This is also an import of merchandise and it will be recorded under current in the BOP.

d. U.S. farmers make a gift of food to starving children in Ethiopia

This is an exports of merchandise and it will be recorded under current in the BOP.

e. The U.S. Treasury sells a bond to a Saudi Arabian prince.

This an outflow of capital and it will be recorded under capital accounts in the BOP.

f. A U.S. tourist flies to France on Air France.

This is a purchase or import of service and it will be recorded under current account in BOP.

g. A U.S. company sells insurance to a foreign firm.

This is a sale or export of service and it will be recorded under current account in the BOP.

3 0

3 years ago