The income effect shows a change in someone or the economy's income and how it changes the quantity of a good or service. If one is making more, they are usually buying more of something. If someone is making less, they are often buying less of something.
In the market for magazines, the "income effect" means that if the price of a magian rises magazine readers will purchase less magazines.
Connie's next step should be
Not - go back and revisit her plan objectives
Maybe - Conduct primary research and analyze Fred's current customers.
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Explanation:</u></h3>
It is very essential for an entrepreneur who decides to start a new business to have a business plan that helps him in setting up the businesses in the right track and usage of funds in an effective manner. A business plan acts as a blue print of a new business and the objectives and resource utilization.
In the scenario give, Fred decides to start a new boutique and has conducted researches geographic locations and the type of boutiques supported by the demography. She must not then go back and review her plan objectives as she has decided to start it with a good plan and she may conduct a primary research about the current customers of him.
Answer:
$22,800
Explanation:
Calculation for the total amount of indirect manufacturing cost incurred
First step is to find the fixed manufacturing overhead portion
Fixed manufacturing overhead portion=$3.00 *5000 units
Fixed manufacturing overhead portion =$15,000
Second step is to calculate the indirect manufacturing cost if 6,000 units are produced using this formula
Indirect manufacturing cost =Fixed manufacturing overhead portion
+ Variable portion
Let plug in the formula
Indirect manufacturing cost=$15,000 + ($1.30*6,000 units)
Indirect manufacturing cost=$15,000+$7,800
Indirect manufacturing cost=$22,800
Therefore the total amount of indirect manufacturing cost incurred is closest to $22,800
Its an asset of the household or business.