Taken together, the phillips curve and okun’s law imply that there is a negative relationship between unemployment and unemployment.
The time period unemployment refers to a scenario where a person actively searches for employment but is not able to find work. Unemployment is considered to be a key degree of the health of the economy. The maximum frequently used measure of unemployment is the unemployment price.
TYhose include: economic increase; cyclical and structural elements; demographics; education and schooling; innovation; hard work unions; and industry consolidation further to macroeconomic and person firm-associated factors, there are character-associated elements that have an impact on the danger of unemployment.
Unemployed people no longer best lose earnings but additionally face demanding situations to their bodily and mental fitness. There are societal prices of high unemployment. Governmental costs pass past the charge of blessings to the lack of the manufacturing of people, which reduces the gross home product (GDP).
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which of the following do you need to know to calculate target return price? (check all that apply.)
A. Fixed costs
B. Expected unit sales
C. Variable costs
D. Break-even point
The following do you need to know to calculate target return price
D. Break-even point
In a break-even analysis, the margin of safety for a company is calculated and examined in relation to the revenues received and associated costs. In other words, the analysis demonstrates how many sales are required to cover operating expenses.
The break-even analysis establishes what level of sales are required to cover the company's total fixed costs by analysing various pricing levels in relation to various levels of demand.
A seller's selling powers would be greatly enlightened by a demand-side study.
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The standard cost for blank______ manufacturing overhead is computed the same way as the standard cost for direct labor.
The standard cost for variable manufacturing overhead is computed the same way as the standard cost for direct labor.
A predefined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or the "should be" cost are all examples of standard costs. They are frequently included in a manufacturer's annual profit plan and operating budget.
When standard costs are used in manufacturing, the standard cost of a product for a future accounting period will be as follows:
Direct materials: a set quantity of each material and a set price per unit of material.Direct labor: a standard quantity of labor and a standard cost per hour of laborManufacturing overhead: a fixed overhead budget, a standard variable overhead rate, and a standard quantity for applying fixed and variable overhead rates.Learn more about the Standard cost here:
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a(n) is the exclusive right to manufacture a product or use a process granted for a period of years.
An example of intellectual property that falls under this category is a patent. Any innovation that the patent holder develops and registers with the relevant government agencies is protected under the terms of the patent.
Patents typically last between 14 and 20 years, during which time the owner has the sole right to produce, employ, or market his invention.A patent is a property right that is reserved for or granted to an inventor by a sovereign authority. For a specific amount of time, this right gives the inventor exclusive ownership of the patented design, process, invention, or discovery. Someone else cannot use the same concept or invention without the proper authorization from the inventor. This is due to the right granted to an inventor over his or her intention(s).The majority of patent rights in the US are valid for 20 years, with the exception of a few special circumstances where they may be extended.Patent categories.•Plant patents: utilised to protect those who find plants with the ability to reproduce.• Utility patents: These are used to safeguard inventions like machinery, processes, and manufactured goods,
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Which of the following is a good direct mail technique?
A. Self folding mailer.
B. Use self-folding mailers.
C. Print postage labels from your computer.
D. Hand address the envelopes.
Hand address envelopes is a good direct mail technique.
Hand addressed envelopes help make the mailing piece appear to be sent from a family or friend, immediately increasing the interest and desire to open the mailer. It also adds a sense of importance and effort you made to send the mailers to these prospects.Much more than an envelope; a hand-addressed envelope reveals how important a recipient is to the sender. It is written with the intention that it is meant for you; it's contents were created with you in mind. A handwritten envelope adds a special touch to the first piece of paper your family and friends will encounter; inviting them to not only celebrate with you, but cherish every detail to come.
Thus, option (d) hand address the envelopes is correct.
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markets characterized by declining long-run average costs are often referred to as multiple choice perfect competition. diseconomies of scale. natural monopolies. nonprofit organizations.
markets characterized by declining long-run average costs are often referred to as natural monopolies.
What is an example of a natural monopoly?For example, the utility enterprise is a herbal monopoly. The utility monopolies supply water, sewer services, electricity transmission, and energy distribution such as retail natural gasoline transmission to cities and towns across the country.
Are airlines a herbal monopoly?Commercial aviation is what economists call a “natural monopoly.” The most excessive instance of such an industry is an electric powered utility. It places up large amounts of capital to construct producing capacity, string the wires, and join houses as well as businesses.
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https://brainly.com/question/13113415#SPJ4all of the following business organizations provide limited liability to their owners except question content area bottom part 1 a. general partnership. b. stype corporation. c. corporation. d. limited liability company.
Except for general partnerships, all of the following business entities offer their owners limited liability.
Which entity provides owners with limited liability?Limited liability is provided to the owners of an S-corporation, commonly referred to as a subchapter S-corporation. Income taxes are not paid by S-corporations; instead, the profits and earnings are viewed as distributions. The shareholders are required to file individual income tax forms to disclose their income.
Which business structure types offer limited liability?A subchapter S corporation, usually known as a S corporation, offers its owners limited liability.
Which of the following categories of owners is shielded from liability?Limited liability shields business owners, investors, and shareholders from responsibility for financial obligations, legal disputes, or insolvency. Limited liability partnerships, limited liability firms, and corporations are a few examples of several company forms that provide liability protection.
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upon meeting someone for the first time and hitting it off a bit, you ask for and get the person's phone number. were you to put the number into your phone to save it for possible future use you would actually be utilizing which of the roles that stm can play?
The memory system responsible for the learning, storage, and retrieval of the procedures (rather than episodes) that underlie motor, visuospatial, or cognitive skills is known as procedural memory.
What is procedural memory?Procedure-specific memories are those that form over time as a result of repetition. A thorough experimental research revealed that H.M. could learn specific procedural skills just as effectively as average people. One of these motor tasks had him using a pen to trace the outline of a star while receiving feedback on his progress from the reflection of his tracing in a mirror. Similar to how average people would perform this assignment, H.M. got better with practice. But despite his continual progress, he treated each trial as if it were his first. H.M. was unable to create declarative memories of the training experience, therefore in contrast to people who performed the task normally, he was unaware that he was improving.One of the earliest pieces of evidence suggesting that declarative memory (i.e., the capacity to "know what" occurred) and procedural memory (i.e., the capacity to "know how") are separate abilities came from this discovery. That is, procedural memories can form even when a person is not conscious that they are learning a new ability. The tracing task improvement by H.M. proved that procedural memory is independent of the health of the medial temporal lobes.
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the company uses direct labor-hours as its overhead allocation base. the variable portion of its predetermined manufacturing overhead rate is $2.25 per direct labor-hour and its total fixed manufacturing overhead is $50,000 per quarter. the only noncash item included in fixed manufacturing overhead is depreciation, which is $12,500 per quarter.
The manufacturing or factory overhead for the company is $572,000.
What is a factory overhead?Factory overhead, also known as manufacturing overhead, work overhead, or factory burden in American English, refers to the overall expense associated with running all production facilities for a manufacturing organization that cannot be clearly linked to a specific product. Typically, it pertains to indirect costs and indirect labor. With the exception of the cost of raw materials, overhead also includes all manufacturing expenses. The expenses incurred in the factory, excluding the costs of direct labor and direct materials, are those related to the manufacturing process. Typically, cost pools of factory overhead are created and distributed to the units produced throughout the time period. When the created units are eventually sold as finished items or written off, the cost is tacked onto the expense.
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when an organization engages in nominal transparency, it discloses useful information. group of answer choices true false
Privacy ensures that people are in charge of or have some influence over what information about them may be gathered, maintained, and released to whom. “Ensuring that only those with the proper authorization can access the data is what privacy is all about.”The right answer is True.
“The right to privacy of an individual ensures that each person has the right to control how and by whom information relating to that individual is gathered and preserved.” For sensitive and secret information to be kept safe and prevent misuse, privacy is observed. There comes a point at which information should not be disclosed or shared for personal reasons like insecurity, safety, etc.In the end, Texas was the US’s admission of a slave state. Texas was annexed, which led to the start of the Mexican-American War (1846-1848).The battle began because of disagreement over which river, the Rio Grande or the Nueces, was Mexico’s true northern border.In 1844, Congress made the final decision to annex Texas. On December 29, 1845, when Texas became a slave state and the unresolvable differences over slavery in the United States grew, the Mexican-American War began.
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among valuation models, the difficulty of estimating a required rate of return is most likely to be a disadvantage of using:
The Gordon growth model's disadvantage in comparison to other valuation models is probably the difficulty in calculating the necessary rate of return.
Explain about the Gordon growth model's?The Gordon growth model (GGM) assumes that a company will always exist and that dividends will increase consistently when assessing its stock. In order to discount an infinite number of dividends per share back into the present, the GGM uses the required rate of return.
The current prices of all anticipated future dividend payments are added up in the Gordon Growth Model, also known as the dividend discount model, to determine the market value of a publicly listed stock.
The Gordon Growth Model can be used to determine how growth rates, discount rates, and valuation are related to one another.
Despite the valuation's sensitivity to variations in the discount rate, the model nevertheless demonstrates a clear relationship between valuation and return.
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which of the following is the first task in international financial management? question 6 options: working capital and cash flow management managing currency risk navigating the complexities of multinational accounting and taxation determining the capital structure
d)Determining the capital structure is the first task in international financial management.
A multinational company or a firm that has expanded in other countries needs effective international financial management when setting up business outside its borders.
The first step in international financial management is to assess the total capital and the ways it is to be utilized when expanding a business in another country.
The capital structure will allow the business to evaluate the total revenue that would be required for the production, operations, and management of the business.
The question can be written correctly as:
which of the following is the first task in international financial management? question 6 options:
a) working capital and cash flow management
b) managing currency risk
c)navigating the complexities of multinational accounting and taxation
d)determining the capital structure
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Which of the following is incorrect regarding the statute of frauds and contracts whose terms prevent possible performance within one year? Multiple Choice a. The one year period begins to run the day her the contract is created b. A contract does not come within the statue of frauds could be completed within one year even if it is highly unlikely that contract will be completed within one year c. A contract for lifetime employment does not have to be in writing in order to be enforceable d. Contract whose performance, bered on the terms of the correct could not possibly occur within one year fail within the statute of rude e. The one-year period begins to run the day the contract is scheduled to begin.
A contract for lifetime employment does not have to be in writing in order to be enforceable is incorrect regarding the statute of frauds and contracts whose terms prevent possible performance within one year option C is correct .
What is the Statute of Frauds?
A body of law known as the statute of frauds stipulates that certain contracts must be in writing in order to be enforceable. Furthermore, that written agreement frequently contains requirements, such as delivery requirements or what must be contained in that written agreement.What are the four exclusions from the fraud statute?
Admission, performance, and promissory estoppel are examples of these exceptions. When one party admits under oath that an oral agreement was made, it means that the agreement can be enforced without having to comply with a statute of frauds' requirements. Performance can refer to either complete or insufficient performance.Learn more about the Statute of Frauds
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the management of translation exposure is best described as multiple choice selecting a mechanical means for handling the consolidation process for mncs that treats inventory valuation as fifo on the income statement and lifo on the balance sheet. selecting a mechanical means for handling the consolidation process for mncs that logically deals with exchange rate changes. selecting a mechanical means for handling the consolidation process for mncs that makes this quarter's accounting numbers as attractive as possible. selecting a mechanical means for handling the consolidation process for mncs that treats inventory valuation as lifo on the income statement and fifo on the balance sheet.
Selecting a mechanical means for handling the consolidation process for MNCs that logically deals with exchange rate changes.
A device is a bodily device using electricity to apply forces and control movement to perform a movement. The time period is normally applied to artificial gadgets, which includes those employing engines or automobiles, but also to natural organic macromolecules, inclusive of molecular machines. Machines may be driven by using animals and those, through natural forces such as wind and water, and by chemical, thermal, or electrical power, and consist of a system of mechanisms that shape the actuator input to gain a specific utility of output forces and movement. They also can include computer systems and sensors that display overall performance and plan motion, regularly called mechanical structures.
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rationalization and optimization of your supply base can result in group of answer choices lower order transaction costs because you have less suppliers to manage suppliers who perform well according to your performance metrics both answers are correct
There may be a range of viable answers as a result of the rationalization and optimization of your supplier base.
option - Both Answers are Correct
An organization that contributes products or services is referred to as a vendor, supplier, provider, or seller in a supply chain. A supply chain vendor often produces inventory or stock products and sells them to the chain's next link. These terms now describe a provider of any goods or services.
Anyone who offers goods or services to another business is referred to as a vendor in supply chain management. Vendors can engage in business-to-business (B2B) or direct-to-consumer (B2C) or business-to-government (B2G) sales. While some vendors create products that can be kept in inventory and then sell them to clients, other vendors provide services or experiences. The terms vendors and the term supplier are often used indifferently.
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Do you get excited about sales and discounts?
Everyone is certainly happy and excited about the discount and sales. People can get a lower price than the original price with a discount. Then, they can save money.
Sales are the deal in which two or more parties exchange goods or services for cash or other assets. Sales in the financial markets is an arrangement involving the cost of a security and its delivery for agreed-upon payment between a buyer and a seller.
Discounts refer to the reduction from the item's typical price. It implies deducting an amount from the price of something.
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a marketing message may never make it to the desired receiver if an error is made in determining blank . multiple choice question. the length of the message the channel used for the message the amount of planning in the message the cost of the message to be communicated.
A marketing message may never make it to the desired receiver if an error is made in determining b) the channel used for the message.
When sending over messages as a marketing strategy, businesses should know which channel to be used for customers in order to make the message reach more people.
If the wrong channel of the message is used, the message will not be able to reach a person hence impacting a business.
Many companies take a survey in which they ask potential customers for the best channel that can be used to contact them. This can work as an effective strategy when marketing by the use of messaging channels.
The question can correctly be written as:
A marketing message may never make it to the desired receiver if an error is made in determining blank. multiple choice question.
a)the length of the message
b) the channel used for the message
c)the amount of planning in the message
d) the cost of the message to be communicated
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When designing a project schedule, the ____________ of the schedule provides the level of detail for monitoring the progress of the project so that everyone has the same understanding of what must be achieved by when.
The "baseline" of a schedule, which is created while creating a project schedule, offers the degree of detail for tracking the project's progress and ensuring that everyone is on the same page regarding what needs to be accomplished by when.
Define the term project schedule?A project schedule is really a timetable that arranges tasks, resources, and due dates in the most effective order to enable on-time completion of the project.
During the planning stage, a project schedule is developed, which contains the following:
a project schedule includes milestones, start dates, and ends dates.the effort required to finish the project deliverables.the expenses, supplies, and dependencies related to each task.the members of the team that are in charge of each task.Project scheduling software, particularly provides crucial features that enable project managers to follow the progress of activities, resources, and expenses in real time, is used to establish and monitor project schedules.
Thus, the level of information needed for tracking the progress of the project and making sure that everyone is aware of what needs to be done by when is provided by the "baseline" of such a schedule, which also is generated while developing a project schedule.
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kevin borrows $8,000 from second national bank at 10% interest. kevin will repay the loan in six equal payments beginning at the end of year 1. what is the annual amount that kevin will pay the bank each year? round your answer to the nearest dollar.
Kevin borrows $8,000 from Second National Bank at 10% interest. $ 1837 is the annual amount that Kevin will pay the bank each year.
Calculating the problem:The amount borrow divided by the present value annuity factor of 10% for 6 periods which is equal to the annual payment.
$8,000/4.35526
= $1,837
Hence , the annual amount is $ 1,837.
What's interest rate mean?
An interest rate tells you how high the cost of borrowing is, or high the prices are for saving. So, if you are a borrower, the interest rate is the amount you're charged for adopting plutocrat, shown as a chance of the total amount of the loan.
Why are interest rates high right now?Interest rates are going up because of the rise in affectation. The Federal Reserve raises interest rates to try to decelerate down profitable growth, bringing affectation back to ideal situations.
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which question below represents a crm analyzing technology question?
A. Why did sales not meet forecasts?
B. What customers are at risk of leaving?
C. What is the total revenue by customer?
D. All of the above
A. Why did sales not meet forecasts? represents a CRM analyzing technology question.
CRM is a technique in which a business or other employer administers its interactions with clients, usually the usage of records evaluation to look at big quantities of information.
As mentioned previously, any implementation of CRM needs to remember those 4 middle additives: era (applications and infrastructure), approach (enterprise goals and goals), method (techniques and business guidelines) and people (organizational shape, competencies, and incentives).
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dom is reviewing a perceptual map that compares a number of jeans brands based on customer survey data. five of the eight brands are depicted as points close together on the map. a logical conclusion dom can draw from this perceptual map is .
A logical conclusion dom can draw from this perceptual map is the five brands are viewed as most interchangeable by consumers.
What's the objective of a perceptual map in marketing?Basically, perceptual mapping is allowed to help you to more conclude the business and to see how target markets are actually perceiving your trademark. It also Helps you distinguish gaps and extrapolate the actions of consumers. Allows you to estimate recent marketing campaigns.
What's perceptual map utilized for?A perceptual map is a chart used by market investigators and enterprises to depict and conclude how target clients view and feel about a given brand or product. Perceptual maps can also be pertained to as product positioning maps. Perceptual mapping is a tool that can help companies extrapolate client shoes to help guide business opinions. Any association using perceptual mapping can consider new plans for growth grounded upon client comprehensions of the association and its major challengers.
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bud works at a cheap stuff store from which, without authorization, he takes merchandise that he has not paid for home for his own use. this is
Bud works at a cheap stuff store from which, without authorization, he takes merchandise that he has not paid for a home for his own use. this is larceny.
Merchandising is any practice that contributes to the sale of products to a retail client. At a retail in-save degree, merchandising refers to show products that might be on the market in a creative manner that entices customers to buy greater objects or products. In retail trade, visual display merchandising means product income the use of product layout, choice, packaging, pricing, and display that stimulates clients to spend more. This includes disciplines and discounting physical presentation of products and shows, and the decisions approximately which merchandise need to be presented to which customers at what time. Often in a retail putting, creatively tying in related merchandise or accessories is a excellent way to trap customers to purchase extra.
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parker corporation, which operates on a calendar year, expects to sell 4,000 units in october, and expects sales to increase 20% each month thereafter. sales price is expected to stay constant at $8 per unit. what are budgeted revenues for the fourth quarter?
The Budgeted revenue for the fouth quater is $115,500.00
What is revenue?Revenue, which is determined by multiplying the average sales price by the quantity of units sold, is the money made from regular business operations. The top line (or gross income) figure is what is used to calculate net income by deducting costs. Sales are another name for revenue in the income statement. the exchange of things, merchandise, or items. selling services like consulting. Rent received from a commercial property (note the word "revenue" in this sentence) the purchase of concert tickets. income from interest on loans. Total profits a business makes through its core activities, such as product or service sales, real estate rent, recurrent payments, interest on borrowings, etc. Before deducting any costs, like as discounts and returns, revenue calculations are performed.
Hence, The Budgeted revenue for the fouth quater is $115,500.00
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when requesting a waiver, the required documents should be presented to the faa at least how many days prior to the planned operation?
The needed paperwork must be sent to the faa at least 90 days before the anticipated operation when obtaining a waiver, right.A waiver is a document that the FAA issues to an application and which typically .
Rules and regulations that the applicant is expected to abide by.Because the FAA generally requires applicants to submit their applications at least 90 days before the planned operation begins, applicants should make every effort to submit their applications before day 90 of the planned operationThe requirement for documentation of informed consent may be removed when the only document linking the subject and the research is the consent form and the only risk is a breach of confidentiality.The term "research subject" refers to a participant in research. Information (or "data") is obtained from or about the subject to help with the study problem.Other terms for research subjects include study volunteers, research subjects, and human subjects.Finding a study topic is the first stage in any research project. It may seem obvious, but it is not. Without further development into specific study objectives and research problems, students who receive insufficient advice typically choose a research topic and leave it at that.
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wallace sells a aaa rated 4% bond for $960 and buys another aaa rated 4% bond for $950. both bonds mature in seven years. this is an example of a) an intermarket spread swap. b) a pure yield pickup swap. c) an interest rate swap. d) a substitution swap
This is an example of an intermarket spread swap. To take advantage of yield differences across different bond sectors, an intermarket spread swap is the exchange, or sale, of one bond for another with different terms.
Such as a different coupon rate, credit grade, or maturity date. When a trader opens a long or short position in one contract month and then opens an bond opposing position in another contract month in the same futures market on the same exchange, this is known as an intermarket spread, also known as a calendar spread or a time spread. The exchange of one bond for another that has comparable features but provides a greater yield is known as a substitution swap.
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activities that affect either the number or type of people willing to apply for and accept job offers is referred to as
The activities that affect either the number or type of people willing to apply for and accept job offers are recruiting
The practice of actively seeking out, locating, and employing individuals for a certain post or career is known as recruitment. The entire hiring process, from the first stages to the recruit's integration into the business, is covered by the term of recruitment. It involves the actions that have an impact on the types or numbers of persons who are willing to apply for jobs and accept offers.
Finding the applicant with the ideal combination of qualifications, experience, and personality is a key component of the recruiting process. To hire someone to work for the organisation, it is necessary to gather and evaluate resumes, hold job interviews, and then choose and onboard the chosen candidate. To recruit someone to work for the organisation, it is necessary to gather and evaluate resumes, hold job interviews, and then choose and onboard the chosen candidate.
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uber prices services according to demand. this allows the company to increase rates during peak periods in order to attract more potential suppliers into the market to meet demand.
Uber prices services according to demand. This allows the company to increase rates during peak periods in order to attract more potential suppliers into the market to meet demand.
The statement is true.
Lyft is a notable desire in instances of excessive calls for or when there is a driving force close by and also you need a low-cost experience fast. if you need a ride that appears right, Uber has a higher choice of vehicles. If Uber is your desire, then you will pay much less with UberPOOL.
You could now speak without delay with skilled retailers properly over the cellphone.
Whether you have a query about your account or want to report an incident, we'll be equipped to help—24/7. to talk with an agent, simply visit the assist tab of your Uber driver app and discover the blue phone icon.
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a life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary, which means that:
It means that The cash benefits from your life insurance policy cannot be claimed by creditors.
What do you mean by Life insurance policy?
Life insurance Is usually used to cover important segments like afterlife which can natural and accidental causes. It helps in providing financial support in the event of untimely issue as well as act as a long term investment. The most important type of life insurance is Term life insurance.
There are three types of life insurance
Term life insuranceWhole life insuranceUniversal life insurance.Hence, The cash benefits from your life insurance policy cannot be claimed by creditors.
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the friendly sausage factory (fsf) can produce hot dogs at a rate of 5,500 per day. fsf supplies hot dogs to local restaurants at a steady rate of 350 per day. the cost to prepare the equipment for producing hot dogs is $64. annual holding costs are 49 cents per hot dog. the factory operates 299 days a year. a. find the optimal run size. (do not round intermediate calculations. round your answer to the nearest whole number.) b. find the number of runs per year. (round your answer to the nearest whole number.) c. find the length (in days) of a run. (round your answer to the nearest whole number.)
a) 5447 runs is the optimal number of runs.
b) 19 runs are scored annually.
c) A run lasts for 1 day (in days).
As one of the most significant firm assets and a key component of inventory management, inventory is a key notion in the business supply chain. To maintain its proper level, the business needs to have effective internal controls over records and inventory use.
P = 5,500 hot dogs produced each day.
u = 350 hot dogs are consumed every day,
299 days is the number of working days.
D = 350/day times 299 days in a year equals 104,650 hot dogs annually.
S = Setup Expenses ($64)
H = Annual Holding Expense ($0.49)
a. The following formula can be used to determine the optimal run size:
[tex]Q = \sqrt\frac{2DS}{H} \sqrt\frac{p}{p - u}[/tex]
Q = √2 * [(350 * 299 * 64)] / 0.49] * √5500 / (5500 -350)
Q = 23.11 * 8.75 = 5447
Optimal Run Size = 5447
b. Determine the annual number of runs.
Annual Runs = D / Q
Annual Runs = 104650 / 5447 = 19.21
In a typical year, there are roughly 19 runs.
c. The formulae below can be used to get the Run Length;
Run Length = Q / p
Run Length = 5447 / 5500 = 0.99
A run, therefore, has a length of 1 day measured in days.
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A firm experiencing constant economies of scale will have a long-run average cost curve that is:
a. upward sloping
b. vertical
c. downward sloping
d. horizontal
A firm experiencing constant economies of scale will have a long-run average cost curve that is horizontal.
A planning curve is a curve that represents the long-run average cost. This is so that a company can plan to produce an output over time by selecting a plant from the long-run average cost curve that corresponds to the output. In order to produce the desired output at the lowest possible cost, it aids the company in determining the size of the plant.
Because businesses have the freedom to change major parts of their operations, like factories, over a long period of time, long-term unit costs are almost always lower than short-term unit costs. Finding the LRATC's lower bounds is a goal shared by investors and company management.
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automatic stabilizers are designed so that as income falls:
When economic activity slows or earnings drop, they inject additional money into the economy via government expenditure or tax refunds.The economy is supposed to be protected from changes in the economic cycle by doing this.
What is the purpose of automatic stabilizers?People's reactions to recessions are tempered by automatic stabilizers, which also help them survive if they lose their employment or their businesses suffer.They also serve a crucial macroeconomic function by stimulating aggregate demand when it lags, which helps shorten and lessen the severity of downturns compared to how they would otherwise .The known automatic stabilisers include corporate and personal income taxes that are graduated over time, as well as payment programs like welfare and unemployment insurance.Because they moderate economic cycles and activate automatically without additional government intervention, automatic stabilisers are so-called. Automatic stabilizers work to reduce private sector expenditure during a strong economic expansion by raising tax revenues and decreasing welfare spending.To learn more about automatic stabilizers refer
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