Answer:
The correct answer is option B.
Explanation:
The political business cycle can be defined as the fluctuations in the economy caused because of political activities. Often before elections, politicians enact expansionary policy to show economic growth to prove their competence.
But if used in excess these policies can be harmful to the long term growth of the economy. So after getting re-elected, politicians who are aware of the negative effects of these policies will reverse these policies and adopt a contractionary policy to reduce inflationary pressures.
Answer:
31.6%
Explanation:
Contribution margin ratio after the increase in selling price is:
CM = (Unit selling price - Unit variable cost) / Unit selling price
= (190 - 130) / 190 = 31.6%
Answer:
Abbey Co.
Amount of gross profit earned by Abbey Co:
Net Sales = $22,600
Cost of goods sold 13,273
Gross profit $8,327
Explanation:
a) Data and Calculations:
Sales = $25,700
Sales returns = 3,100
Net Sales = $22,600
Cost of goods sold = $14,731
Inventory returned 1,458
Adjusted cost of goods sold $13,273
The gross profit is a function of sales revenue and cost of good sold. It is the first profit that is determined in the income statement. It tells the efforts of management to turn sales revenue into some profits, which will be used to offset the period's expenses before the net income could be arrived at.
