Answer:
Increase the production to decrease the fixed cost per unit
Explanation:
The reason is that if the production increases then the fixed cost will start decrease because the level of production and fixed cost per unit are inversely proportional to each other. Now if the production increases to 1250 ($500/0.4) units then the firm is at no profit and no loss position (Breakeven position). So all the firm has to do is increase its production above 1250 and generate the demand of increased production at the same price.
Answer:
See below
Explanation:
a. Given that the overhead application rate is $21.40 per direct labor hour and total labor hours used during the period are 8,250 hours
Overhead applied = $21.40 × 8,250
Overhead applied = $176,550
Actual overhead incurred = $172,500
Then, the manufacturing overhead is over applied for the period by $4,050
I.e
= Overhead applied - Actual overhead incurred
= $176,500 - $172,500
= $4,050
b. With regards to the above, if the over applied overhead is closed out to cost of goods sold, it means that the cost of goods sold amount would decrease . The reason is that since cost of goods sold is deducted from revenue to determine gross margin, a reduction in cost of goods sold would bring about an increase in the company's gross margin for the period by $4,050
Answer:
The consumer acquires a greater amount of energy due to the low cost of energy.
Explanation:
If the acquisition of energy services remains constant, the improvement in energy efficiency will have a reduction in energy consumption and carbon emissions.
However, the improvement in energy efficiency does not reduce energy consumption by the amount provided by simple engineering models.
This is because the energy services are of lower cost and, therefore, increases the consumption of those services.
Similarly, a historical analysis of improvements in energy efficiency has conclusively demonstrated that improvements in energy efficiency were almost always overcome by economic growth, which resulted in a net increase in resource use and pollution.
Answer and Explanation:
a. The computation is shown below;
As we know that
Y/G = 1 ÷ (1-MPC)
Here
Y = $300 billion,
MPC = 0.75
So,
300 ÷ G = 1 ÷ 0.25
G = $75
So the government should rise the spending by $75 in order to close out the recessionary gap
So, the government should increase the spending by $30 to close the recessionary gap.