Generally, companies that has large amounts of fixed manufacturing overhead tends to have a total manufacturing overhead costs that <u>remain constant</u> from one period to the next
<h3>What are
overhead costs?</h3>
In accounting , an overhead costs refers to expenses that are required to run the business including cost like rent, insurance, utilities etc
In conclusion, the companies that has large amounts of fixed manufacturing overhead tends to have a total manufacturing overhead costs that <u>remain constant</u> from one period to the next.
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Answer:
Tourists flock to visit the major theme park's in Orlando, Florida.
Determinant of AD: Consumer confidence is the best determinant in this case. Tourists flock the theme parks because households not only have enough money to spend on recreation, but also feel that they will continue to have enough money to make ends meet in the near future, otherwise they would not go to the parks, and instead would save the money.
Direction of the shift: the AD curve shifts to the right, because AD is increasing, and the AD curve increases when it shifts to the right.
Impact on output and price level: Output increases because consumer confidence, and as a result, consumer demand, is boosting aggregate demand.
Price level also increases, because demand is pushing the price of a good that has a relatively inelastic supply (the theme parks). In other words, demand is rising more than supply, and this increases the price.
Answer:
The sustainable Growth Rate is 15.46%
Explanation:
Return on equity= (Net income/Equity Shareholder's Fund) * 100
= ($19,789 / $83,200) * 100
= 23.78%
Payout ratio is 35%.
Therefore, Retention Rate is 65% or 0.65
Sustainable Growth Rate = Return on Equity * Retention Rate
= 23.78% * 0.65 =
= 0.2378 * 0.65
= 0.15457
= 15.46%
Thus, the sustainable Growth Rate is 15.46%
Commercial paper should be sold on a discount
Answer:
Advertising.
Explanation:
Advertising increases costs of product. Customers have to pay high price for the products heavily advertised. Companies do not forgo their profits.