Answer:
The correct answer is D.
Explanation:
Giving the following information:
The Thomlin Company estimates that total overhead for the current year will be $16,000,000 and that total machine hours will be 200,000 hours.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 16,000,000/200,000= $80 per machine hour
Answer:
There is a difference between theory and practice because the theory states <u><em>with taxes implies that firms should issue maximum debt</em></u><em> </em>but in practice, <u><em>this does not occur because it will result in bankruptcy if firms are issuing maximum debt.</em></u><em> </em>There should be a balance between how much debt is acquired and how much equity is taken. Therefore bankruptcy becomes a cause of concern if maximum debt is issued.
Answer:
The sales tax is regressive with respect to income
Explanation:
sales tax by Jennifer = 0.1*30000
= 3000
tax/income = 3000/50000
= 6%
sales tax by steve = 0.1*27000
= 2700
tax/income = 2700/30000
= 9%
The tax increases with decrease in income, it indeed is regressive on the whole.
Therefore, The sales tax is regressive with respect to income
Answer:
The production possibilities curve would have shifted inwards.
Explanation:
A production possibility curve shows the maximum possible bundles of two goods that can be produced in an economy in a given period. A reduction in the availability of resources causes this curve to shift to the left.
The outbreak of bubonic plague in the 14th century caused the European population to decrease by 30-60%. A decrease in the population implies a decrease in the labor force. This means that the economies will be able to produce less than earlier.
This will cause the production possibilities curve to shift inwards to the left.
