Answer:
see below
Explanation:
Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost, accounts adjustments, and other non-recurring costs.
Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries, employee benefits, transport, depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.
Answer:
The correct answer is option D.
Explanation:
A change in the quantity demanded is a movement along the same demand curve. It is caused because of a change in the price of the product while other factors affecting demand remain constant.
A change in demand is shown by a movement in the demand curve. This is caused by changes in other factors such as income, population, preferences, price of other goods, etc, while the price of the product remains constant.
Answer:
Toys produced 40,000 80,000 120,000
Total costs:
Total variable costs $720,000 $1,440,000 $2,160,000
Total fixed costs $600,000 $600,000 $600,000
Total costs $1,320,000 $2,040,000 $2,760,000
Cost per Unit
Variable cost $18 $18 $18
Fixed cost $15 $7.50 $5
Total cost $33 $25.50 $23
Fixed costs do not change with total output, they are the same regardless so the number of units produced. Variable costs change proportionally to any change in total output. If total output increases, variable costs will increase.
Answer:
True
Explanation:
The statement is true, roles and responsibilities are very important in family business. Relatives regularly fill more than one job in the organisation so as to keep it running. Likewise, if the administration covers and family jobs and duties are uncertain to everybody, opposition or even absolute battling is bound to happen in light of the fact that the individuals included know each other well indeed.
Answer:
a) 2000
b) 4000
c) 2000 and 4800
Explanation:
The quantitative theory of money shows how the monetary side of an economy behaves, that is, the effect of money supply on income. It is given by the equation MV = PY, where M = money supply, V is the currency's velocity, P is the price level and Y is the real income level.
M = 500, V = 8, P = 2
a) The real income level:
MV = PY
500 x 8 = 2 x Y
Y = 2000
b) Nominal income level (price level multiplied by real income)
PY
2 x 2000 = 4000
C) If the money supply increases by 20%, ie to 600, the real income will be:
MV = PY
600 x 8 = 2.4 x Y (Y is full employment income, so the effects of money supply will be on the price level)
Y = 2000 Real income remains the same, increase in money supply does not affect real output, only price level, which increases from 2 to 2.4.
The nominal income, in turn, will be:
PY
2.4 x 2000 = 4800
That is, an increase in the money supply only increases nominal income.
