Answer:
1.- The operating income would <u>increase </u>for $680
2.- The operating income would <u>decrease</u> for $680
3.- The Operating Income would be $59,500
Explanation:
We are going to use the contribution margin per unit
<u>This way we avoid most of the calculations</u>
1.- Contribution Margin x ΔUnits = ΔOperating Income
CM per units 17 x 40 = <em>680</em>
<em />
2.- Contribution Margin x ∨Units = ∨perating Income
CM per unit x (-40) = <em>-680</em>
<em />
3.- Contribution Margin x Sales Volume - Fixed Cost = Operating Income
17 x 6,800 - 55,700
115.600 - 55,700 =<em> 59,900</em>
Answer:
Amortization of the discount at December 31, 2020 will include: a debit to interest expense for $8,200.
Explanation:
Note is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Since the face value of the note was $511,000 and the inventory was $498,700, then discount on the note is $12,300.
Amortization of the discount at December 31, 2020 will include: $12,300 / 3 x 2 months = $8,200.
Answer:
Answer: Therefore an increase in money growth will increase only the price level and inflation rate
Explanation:
(a) The concept of money neutrality tells that the change in money supply leads to changes only in nominal's variables such as price level, wages and inflation but have no impact on real variables e.g. production. Therefore an increase in money growth will increase only the price level and inflation rate
(b) The unemployment rate is at its natural level and the real GDP is $50 billion, since the unemployment rate is at is natural level the output must be at the natural level too. Therefore the current real GDP must be the long run real GDP.
(c) An increase in the minimium wage will cause the natural rate of unemployment to increase and that will lead to a fall in the natural level of output. Therefore an increase in the minimum wage will shift the long run aggregate supply curve to the left.
Answer:
A. remain constant on a per-unit basis but change in total based on activity level
Explanation:
In the short run, variable costs only vary according to the total output of the company. E.g. a company's variable cost of manufacturing product X is $10 per unit. If it produces 10,000 units, total variable costs will = $10 x 10,000 = $100,000.
In the long run variable costs will probably vary because production processes will also vary or the cost of inputs change.
