Answer:
considering the economy is stable it will expand the economy
Explanation:
The multiplier effect of the 100 public spending will be partially negate by the negative multiplier of the taxes.
100 x 1 /(1-0.7)
-100 x 0.7/(1-0.7)
100/0.3 - 70/0.3 = 30/0.3
The income will increase for 100
a portion of this increase will go abroad because is an open economy and the effect will be lower than 100 but the economy will expand.
Kalim could have avoided this by seeing how much the most popular food product and lease a price it through that range.
For example, Bananas are 14$, and Pizza is 95$
He could have made the price 30 - 60$.
Answer:
Inventory levels will increase
Explanation:
CVP stands for cost volume profit analysis, under this analysis, there is basic assumption with respect to cost and revenue, that they are linear.
That means with the increase in output or sales, there will be increase in costs associated as cost is linear, and also the revenue is linear as with increase or decrease in number of units sold, the revenue will also increase or decrease.
But, it has an assumption that the inventory balance do not change, and inventory in hand do not show a linear equation as with the number of units produced or sold.
Thus, "Inventory levels do not increase under CVP analysis".
Answer:
D. More Units may be sold - but total revenue will be less than it would be at the higher price
Explanation:
Marginal Revenue (MR) represents the additional revenue that can be obtained if sales of a product are increased by one unit.
MR= is change in Total Revenue/Change in Total Output Quantity
In this situation as envisaged by the Marketing Manager, a price cut will lead to an increase in revenue based on more (marginal) units of the product sold at a lower price. The challenge, however, is that this increase in income will not be enough to offset the decrease in revenue that will result as a result of the price cut.
In other words, the organisation is better off selling fewer products or units at its current price than sell more (marginal units) at a reduced price.
Answer:
inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.
Explanation:
