An activity's normal time and cost are = 8 and $100 respectively
estimated crash time and cost are = 6 and $160 respectively
Activity's crash cost per unit time = ?
crash cost per unit time = cost slope and,
cost slope = rise/run = (crash cost - normal cost) / (normal time - crash time)
cost slope = (160 - 100) / (8 - 6) = 60 / 2 = $30
so, crash cost per unit time is $30.
Answer:
C. $65,800
Explanation:
Fixed csot: those which do not change for a relevant range with the production output. They aer constant.
Factory insurance 21,000
Factory insurance 13,000
Factory manager's salary 10,800
Janitor's salary 5,000
Property taxes: <u> 16,000 </u>
Total Fixed Cost: 65,800
The direct materials and direct labor are variable cost as they drop to zero if no unit is produced.
Same goes with packaging cost, if no unit is produced then, no packagin is needed.
Answer:
Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%
Explanation:
Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.
Item Prob Earn
Booming 20% -6%
Normal 55% 7%
Recession 25% 13%
Ok, now let´s calculate the expected rate of return.
So the expected rate of return of the stock is 5.90%
Best of luck.
Answer:
a. Structures deficit decreased from $4.5 billion to a surplus of $2 billion, therefore the amount of fiscal restraint that occured between 1931 and 1933 is $6.5 billion.
b. Using the formula
Change in aggregate demand = 1/1- mpc x change in fiscal restraint
= 1/1-0.8×(-6.5)
= 1/0.2x(-6.5)
= 5x-6.5
= -$32.5 billion
