Money supply is the total amount of money in circulation which includes coins, cash and balance in savings account in a country at a period of time.
- Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will <u>not change</u> the price paid for its use, otherwise known as the <u>discount rate.</u>
- A change the money supply in a country causes a change in aggregate demand.
- An increase in the money supply causes increase in aggregate demand and a decrease in the money supply causes decrease in aggregate demand.
Therefore, an increase in money demand will not change the price paid for its use, otherwise known as the discount rate.
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Answer:
a. Undifferentiated products and variable prices in the various channels.
Explanation:
Horizontal Channel Conflicts arises when there is disagreement between two or more members of the channel. If the toy manufacturer sells toys to toy store and department stores, a possible reason for disagreement could be on variable price among the two channels.
<span>Each week, the Treasury holds an auction to issue T-Bills. When the auction opens, investors are able to place bids on the bills. The Treasury is then able to select the highest bids in order to obtain adequate funding.</span>
Answer:
a. $9,338
b. 0.363
Explanation:
a. Contribution Margin = Sales - Variable Cost
Where Sales = $25,700
Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses
V.C. = 8,982 + 6,500 + 40% * 3,700
V.C = 8,982 + 6,500 + 1,480
= $16,362
Therefore, Contribution Margin = Sales - Variable Cost
= $25,700 - $16,362
=$9,338
b. McDonald's contribution margin ratio = Contribution Margin / Sales
= $9,338 / $25,700
= 0.363
Answer:
product B
Explanation:
The computation is shown below;
<u>Particulars Product A Product B Product C
</u>
Selling Price $5.00 $3.00 $5.00
Less: Variable cost per unit ($3.50) ($2.00) ($2.00)
Contribution per unit $1.50 $1.00 $3.00
Machine hours per unit 0.75 0.25 1
Contribution per machine hour $2.00 $4.00 $3.00
($1.50 ÷ 0.75) ($1.00 ÷ 0.25) ($3.00 ÷ 1)
The product B should be produced as it has the highest contribution per machine hour
