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Doss [256]
2 years ago
13

What does "Certeris Paribus" assume when

Business
1 answer:
tekilochka [14]2 years ago
3 0
Ceteris paribus assumes things like confidence and income remain the same, so that we may study simply the interaction between interest rates and the demand for loans and ignore how all the other variables might affect the outcome.
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Pasadena Candle Inc. budgeted production of 730,000 candles for the January. Wax is required to produce a candle. Assume 11 ounc
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Answer:

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Explanation:

The computation of the direct material purchase budget is given below:

Here we assume that

one pound = 16 ounces

Now total wax needed is

= Production of Finished Goods × Pounds of wax needed for production

= 730,000 candles × 11 ÷ 16

= 501,875 pounds

Now

Total direct material purchased  = (Total Wax needed +  Ending Inventory, Jan.31 - opening inventory) × unit price

= (490,625 Pounds + 12,900 pounds - 17,400 pounds) × $1.40 per pound

= 696,325 Pounds

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