Answer: Exclusive distribution
Explanation:
Exclusive distribution is defined as the agreement in which a parties involved are manufacturer and distributor.It states that the particular distributor cannot sell their service or item to any other party .It binds the agreement that product can be sold to the exclusive distributor.
According to the situation mentioned in the question, designers are asked for exclusive distribution by the retailer.Retailer does not wants that design of jewelry to be sold through any other source or retailer for effective sale.Thus agreement upon this matter is proposed by the retailer.
Answer:
c) $10 per pound
Explanation:
Differential cost is the cost difference of one plan when compared to another. it is the difference in cost between 2 alternative decision.
The product x has a cost of $ 15 per pound . The company later modified product X to produce product Y. The additional cost for product Y after modification of X is $ 10. The cost of producing product Y is 15 + 10 = $ 25.
The differential cost of producing product Y is the difference of the cost of producing product Y and product X. it can be computed as 25 - 15 = $ 10 per pound .
Answer:
450 billion
Explanation:
Marginal Propensity to consume (MPC) is a ratio that measure much the investment in the economy is consumed.
Marginal Propensity to save (MPS) is a ratio that measure much the investment in the economy is saved
Marginal Consumption = $500 billion - 450 billion = 50 billion
Spending ratio = 50 / 500 = 0.1
Marginal Propensity to consume (MPC) = 0.1
Marginal Propensity to save (MPS) = 1 - 0.1 = 0.9
Spending Multiplier = 1 / MPS = 1 / 0.9 = 1.11
First Round of Multiplier
Spending 500 billion increase income 500 billion
after consuming 50 billion
In second round Spending 450 billion will increase the income by 450 billion
Answer:
It is before operating expenses.
Explanation:
Operating income is an accounting measure that shows the amount of money that a company has made from its daily operating activities. This means that operating income does not include earnings from non-operating activities like interest made from loans (unless we are talking about a financial institution).
Operating income is equal to revenue minus cost of goods sold, minus any other operating expense such as wages, depreciation, utilities, and rent.
Answer:
b. understate the predetermined overhead rate
Explanation:
The rate is determinate by distributing the expected cost over the cost driver
In this case labor cost.
as this value is higher than it should
(labor + some indirect)
the result of the division will be lower thus, the overhead rate is lower than it should be without the mistake.