Answer:
c and m
Explanation:
Considering the provided information,
Consumption function: C = CC + cY
Investment function: I = mr
where,
Y indicates total income
r represents the interest rate
The equation describing the IS curve can be stated as:
Y = C + I
Y = CC + cY + mr
Y - cY = CC + mr
(1 - c)Y = CC + mr
(1 - c)Y - CC = mr
The slope of the IS curve is determined by differentiating 'r' with respect to 'Y',
Thus, the slope is contingent upon the variables c and m.
Answer:
Follow the instructions provided below.
Explanation:
Given the data:
The selling price of the company's ball is $25.
Variable cost per item= $15.00
Fixed costs= 426,000
The contribution margin ratio is the percentage of sales contributing to fixed costs. It is calculated using:
Contribution margin ratio= (selling price - unit variable cost)/selling price
Contribution margin ratio= (25 - 15)/25= 0.4
Break-even units= fixed costs/ contribution margin
Break-even units= 426,000/10= 42,600 units
The degree of operating leverage quantifies the change in income relative to sales fluctuations.
Degree of operating leverage= total contribution margin / (total contribution margin - fixed expenses)
Degree of operating leverage= (62,000*10) / [(62,000*10) - 426,000]
Degree of operating leverage= 3.20
Answer:
The question is rephrased to include the options:
A. The production order quantity model applies under conditions where the basic EOQ model's assumptions hold true, except that receiving is not instantaneous.
B. Average inventory exceeds half the quantity of production order.
C. Due to the non-instantaneous receipt, some items are used immediately rather than being stored.
D. All other things being equal, a lower demand rate to production rate ratio results in a smaller production order quantity.
E. All options are true.
The right answer is option B, "Average inventory is more than one-half of the production order quantity."
Explanation:
Having inventory allows for a division within the production stages, separating finished products from those that are not yet completed, potentially generating income for the company.
An average inventory will be less than half of the production order quantity.
The production order quantity model allows for gradual receipt of orders rather than a single bulk delivery.
This model aids companies in managing their inventory holding costs and average fixed ordering expenses, ultimately helping them to check and reduce inventory costs and providing clarity on appropriate production quantities at any time.
