If the Federal Reserve System sells $5 billion of government securities to commercial banks, the banks' reserves would:
a. Increase by $5 billion,
b. Decrease by $5 billion,
c. Be added to net worth,
d. Remain the same.
Answers
If the Federal Reserve System sells $5 billion of government securities to commercial banks, the banks' reserves would remain the same.
This is because the sale of government securities by the Federal Reserve System to commercial banks is a monetary policy tool used to control the money supply in the economy.
When the Federal Reserve System sells government securities to commercial banks, it essentially drains liquidity from the banking system.
This is because the commercial banks use their reserves to purchase the securities from the Federal Reserve System, which reduces the amount of reserves available to lend out to other banks and customers.
However, this reduction in reserves is offset by an increase in government securities held by the commercial banks.
This means that although the amount of reserves available to the banks has decreased, their overall assets have remained the same. Therefore, the banks' reserves would remain the same.
It is important to note that the sale of government securities is just one of the tools used by the Federal Reserve System to control the money supply.
By adjusting the amount of reserves available to commercial banks, the Federal Reserve System can influence the interest rates and borrowing behavior of banks, which in turn affects the overall economy.
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Related Questions
Which discipline studies the economy as a whole or its basic subdivisions or aggregates?.
Answers
Marcoeconomics is a discipline that studies economics as a whole.
What is Macroeconomics?
Macroeconomics is a study that deals with the study of the performance of an economy, structure and decision-making as a whole.
Macroeconomics is concerned with the general overview of an economy this include the level of employment and unemployment, the number of goods and services produced in an economy.Therefore, Marcoeconomics is a branch of economics that studies the whole economy.
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the company determines that the interest expense on a note payable for the period ending december 31 is $750. this amount is payable on january 1. journalize the entries required on december 31 and january 1. study
Answers
The face amounts of the promissory notes that a corporation has issued are recorded in the Notes Payable general ledger liability account. The sums that are still owed are represented by the balance in Notes Payable.
The journal entry to represent the receipt of the note proceeds is quite simple: raise the checking account to reflect the deposit and raise the Notes Payable long-term liabilities account.
$700 in a checking account $750 in Notes Payable
What sort of notes are considered payable?
Examples of notes payable include getting a loan from a bank, buying a house, and getting a business automobile. Depending on when the loan is due, notes payable may be referred to as either a short-term obligation (lt;1 year) or a long-term liability (lt;1+ year).
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Mrs. Moreau was planning to have several guests at her home for a traditional Thanksgiving dinner. She had cooked Shady Brook Farms fresh turkeys in the past and had enjoyed them very much. When she went to her usual grocery store, she discovered that the store no longer carried the Shady Brook Farms brand. She called several other grocery stores and was finally able to locate Shady Brook Farms fresh turkeys at a small grocery store approximately 10 miles away. She drove to the store and bought a 20-pound Shady Brook Farms turkey, even though the price per pound was higher than what she normally paid at her usual grocery store. For Mrs. Moreau, the Shady Brook Farms turkey was a(n)
Answers
Answer:
The answer is "Specialty product".
Explanation:
In the given scenario, Specialty products are products that both these consumers constantly seek out just because of their unique characteristics or loyalty to a particular brand. They understand what they want and are willing to put in the time and effort to obtain that. It is an important set of purchasers who is willing to produce the effort to purchase it because of its unique traits or brand identification.
QUESTION 4
4.1 Mrs Tintswalo Maila owns a metal press shop and is considering expanding her
company to include an advanced machining process plant. If the plant is
successful, her company could realise an additional R200 000. profit. If it fails she
could incur a loss of R180 000. Tintswalo, being the eternal pessimist, estimates a
60% chance that the new plant will fail. Her other option is to build a pilot plant to
help her decide whether to build a complete facility. The pilot plant would cost R10
000 to build and Tintswalo estimates that the pilot has a 50-50 chance of success.
It the pilot plant is successful then there is a 90% likelihood that the full plant will
also be successful. If the pilot plant is unsuccessful then there is a 20% probability
that the full plant will also be unsuccessful. Tintswalo is faced with the problem of
having to decide whether to build a full plant directly from the onset or to first build
a pilot plant and based on its performance, decide whether to build the full plant or
not.
4.1.1 Make use of decision tree analysis to help Mrs Maila decide on the most
appropriate action to take.
Answers
Answer:AMS
Explanation:
AMS AKS;
what is the largest component of gdp? choose one: a. net exports b. exports c. federal government spending d. imports e. state government spending f. consumption g. investment
Answers
The largest component of GDP is typically consumption, which refers to the spending by households on goods and services. Consumption represents the total demand for products and services in an economy and is a key driver of economic growth.
It encompasses expenditures on a wide range of items such as food, housing, healthcare, education, transportation, and recreation.
Consumption is significant because it reflects the overall economic activity and the purchasing power of individuals within a country. When households have higher disposable incomes and are confident about the future, they tend to spend more, leading to increased demand and production.
This, in turn, stimulates businesses to invest and hire more workers, contributing to economic expansion.
While other components of GDP, such as government spending and investment, also play important roles, consumption typically accounts for the largest share.
Net exports (exports minus imports) represent the difference between a country's exports and imports and can vary depending on trade balances.
Federal and state government spending and investment are crucial for economic stability and development, but they generally represent smaller portions of GDP compared to consumption.
In summary, consumption is the largest component of GDP because it reflects the spending patterns and economic activity of households, which have a substantial impact on overall economic growth and development.
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Somebody help I'll give 30 points
Answers
Answer:
1. Salesforce helps their people feel good by giving back to the community. They also offer great challenges and rewards, and have open communication culture.
2. Cisco offers good benefits that focus on family and enabling people to combine parenthood with their jobs. It’s also a great place to learn and develop professionally.
3. Admiral allows people to give back to the community through charity. They have built a strong sense of belonging and believe in the importance of having fun so people bring their best to work.
Explanation:
Answer:
Happy meal wih a mcdoobale
Explanation:
which type of sales presentation format is commonly used for door-to-door sales, treating every prospect the same, regardless of differences in needs or preferences for certain kinds of information?
Answers
The sales presentation format commonly used for door-to-door sales, treating every prospect the same regardless of differences in needs or preferences for certain kinds of information, is known as the "canned" or "scripted" sales presentation.
This type of presentation follows a pre-planned script that the salesperson recites to each prospect, regardless of their individual needs or preferences. It is often used in situations where the salesperson has limited time to make a sale and needs to quickly convey the key benefits of the product or service.
The type of sales presentation format you are referring to is the standardized memorized presentation, also known as the canned presentation. This format is commonly used in door-to-door sales as it provides a pre-written, scripted sales pitch that the salesperson delivers to every prospect without making any adjustments based on individual needs or preferences.
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An informal tool used to organize the accounting information needed to prepare adjusting and closing entries and the financial statements is a:
Answers
Accountants usually organize the accounting information on a worksheet when they prepare adjusting and closing entries and the financial statements.
What is a worksheet?
A worksheet is a piece of paper used for performing tasks. It can also refer to an Excel sheet. Thus, a worksheet simply means a working paper.
Thus, the informal tool that can be used to organize the accounting information for the preparation of adjusting and closing entries and the financial statements is a worksheet.
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Last month, Tech Industries sold its product for $50 per unit. Fixed production costs were $25,000, and variable production costs amounted to $10.50 per unit. Fixed selling and administrative costs totaled $15,000, and variable selling and administrative costs amount to $2.00 per unit. Tech Industries produced and sold 5,000 units last month.
Answers
Answer:
Operating profit = $147,500
Explanation:
Missing question is "What is the total operating profit?
Operating profit = Sale unit(Selling price - Variable Cost) - Fixed expenses
Operating profit = 5,000 * ($50 - $10.50 - $2.00) - $25,000 - $15,000
Operating profit = 5,000*$37.5 - $40,000
Operating profit = $187,500 - $40,000
Operating profit = $147,500
Question 9 of 10
The amount of money you must pay to maintain an insurance policy is called
the
A. coverage
B. premium
C. liability
O D. deductible
SUS
Answers
Answer:
B. premium
Explanation:
hope this helps
Answer:
The answer is liabilities
Draw a planned aggregate expenditure curve for an economy where autonomous expenditure is $500 billion and the marginal propensity to consume is equal to 0.75. plot values for actual aggregate expenditure of $0, $200 billion, $400 billion, $600 billion, $800 billion, and $1,000 billion.
Answers
Y (in $ billions) are 0, 100, 200, 300, 400, 500 and AE (in $ bilions)= 500+0.75Y, 500, 575, 650, 725, 800, 875. By plotting this we get the aggregate expenditure line.
We start with a very simplistic model in which there is neither a government sector nor a foreign sector to demonstrate how the aggregate expenditures model functions. The results from this simplified model are then used to create a more realistic model. The simplified economy's equations are simpler to deal with, and we can easily extrapolate the findings of an analysis of a simplified economy to a more realistic one. We make the assumption that there are only two parts to aggregate expenditures: consumption and investment, in order to create a straightforward model. Real gross domestic product and real gross domestic income are interchangeable terms, as we discovered in the chapter on measuring total production and income. Without a government or international industry, gross.
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the goal of maintenance is to maintain the productive system in good working order while minimizing: multiple choice total maintenance costs. the ratio of breakdown to preventive maintenance costs. total breakdown maintenance costs. total preventive maintenance costs. the difference between preventive and breakdown costs.
Answers
The goal of maintenance is to o maintain the productive system in good working order while minimizing the cost of maintenance includes the cost of maintaining equipment as well as the cost of breakdowns.
What aims does the maintenance management system pursue?The goal of maintenance management is to decrease downtime, minimize maintenance costs, maximize asset performance, etc. To accomplish this goal, look for regularly inspected and monitored systems so that repair may be carried out promptly if a problem arises.
What steps comprise the maintenance procedure? What kinds of maintenance are there?Maintenance is the process through which adjustments are made to the system, either by changing the structure of the current system or by including new components. Rapid changes in system requirements necessitate incorporating and maintaining some changes in the system. Predetermined maintenance, preventive maintenance, corrective maintenance, condition-based maintenance, predictive maintenance, and reactive maintenance are the six different forms.
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The stock price of Alps Co. Is $67. Investors require a return of 10. 5 percent on similar stocks. If the company plans to pay a dividend of $4. 25 next year, what growth rate is expected for the company’s stock price?
Answers
the expected growth rate for the stock price of Alps Co. is 8.07%. This means that investors are anticipating that the company will increase its earnings and dividends by approximately 8.07% annually in the future.
To determine the growth rate expected for the stock price of Alps Co., we can use the Gordon Growth Model formula which states that the expected growth rate equals the dividend payment divided by the difference between the required rate of return and the dividend growth rate. Using the information given, we can calculate the expected growth rate as follows:
Dividend Payment = $4.25
Required Rate of Return = 10.5%
Stock Price = $67
Expected Growth Rate = ($4.25 / ($67 - $4.25)) - 10.5%
Expected Growth Rate = 0.0807 or 8.07%
Therefore, the expected growth rate for the stock price of Alps Co. is 8.07%. This means that investors are anticipating that the company will increase its earnings and dividends by approximately 8.07% annually in the future.
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Ttttthhhhheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee accounf is not working
Answers
Answer:
Step by step explanation
Niat ny mau bikin dua akun tapi malah kesasar :(
Answers
Answer:
I'm lost and I don't understand your language
A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $11,750 must file a tax return. True False
Answers
A single taxpayer, who is not dependent on another's return, not blind and under age 65, with income of $11,750 must file a tax return. True If their income is less than the standard deduction, they are not required to file a tax return.
However, since their income is below the standard deduction, they may still want to file a tax return in order to claim any eligible refundable tax credits, such as the Earned Income Tax Credit or the Child Tax Credit.
It's important to note that this is about federal tax purposes only and state tax laws may differ. In summary, a single taxpayer who is not dependent on another's return, not blind and under age 65, with an income of $11,750 must file a tax return because their income is below the standard deduction.
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If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why? -Select- V I. You should prefer to have lower depreciation charges and therefore higher net income. Net income represents the funds that are available to the owners to withdraw from the firm and, therefore, net income should be more important to them than net cash flows. II. You should prefer to have higher depreciation charges and therefore higher net income. Net cash flows are the funds that are available to the owners to withdraw from the firm and, therefore, cash flows should be more important to them than net income. III. You should prefer to have higher depreciation charges and therefore higher cash flows. Net cash flows are the funds that are available to the owners to withdraw from the firm and, therefore, cash flows should be more important to them than net income. IV. You should prefer to have lower depreciation charges and therefore higher cash flows. Net cash flows are the funds that are available to the owners to withdraw from the firm and, therefore, cash flows should be more important to them than net income. V. You should prefer to have higher depreciation charges and therefore higher net income. Net income represents the funds that are available to the owners to withdraw from the firm and, therefore, net income should be more important to them than net cash flows.
Answers
I will choose Option VII: "You should prefer to have higher depreciation charges and therefore higher net income." is the best option.
Why will I prefer to have higher depreciation expenses?Net pay speaks to the reserves that are accessible to the proprietors to withdraw from the firm, and so, net salary ought to be more imperative to them than net cash streams.
Higher deterioration charges result in lower assessable wages and, subsequently, lower charge costs.
This leads to higher net wages, which speaks to the stores accessible for the proprietors to pull back from the company.
Subsequently, having higher net pay would be more favorable for the proprietors compared to net cash streams.
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this activity is completed by the Customer Invoice Processor and is used to calculate expenses incurred which can be invoiced in each period.
Answers
This activity plays a crucial role in accurately invoicing customers and ensuring that the company is reimbursed for the expenses incurred. It helps maintain the financial health of the organization by appropriately capturing and recovering costs in a timely manner.
The calculation of expenses incurred that can be invoiced in each period. This activity is performed by the Customer Invoice Processor. The purpose of this activity is to determine the expenses that have been incurred by the company and can be billed to the customers.
The Customer Invoice Processor is responsible for calculating the expenses based on the company's records and relevant financial information. This may involve reviewing expense reports, vendor invoices, and other financial documents to determine the accurate amount of expenses incurred during a specific period.
Once the expenses have been calculated, the Customer Invoice Processor includes them in the customer invoices. This ensures that the customers are billed for the expenses they are responsible for, and it helps the company recover the costs associated with providing the goods or services.
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an increase or decrease in which of the following factors would cause a shift in the demand curve for a given good? select the two correct answers.
price of the good
input prices
number of sellers
price of related goods
income
Answers
Answer:
price of related goods
income
The a change in these factors would lead to a shift for the demand curve for a good: price of related goods and income
The demand curve shows the relationship between the price of a good and the quantity demanded of that good.
All things remaining equal, the higher the price of the good, the lower the quantity demanded and the lower the price of the good, the higher the quantity of the good demanded. This explains why the demand curve is negatively sloped.
A change in the price of a good would lead to a movement along the demand curve for that good.
These factors would lead to a shift of the demand curve a good
1. The price of other goods : Assume that pen and pencils are substitutes. If the price of a pen increases, it becomes more expensive relative to pencils. As a result, the demand for pencils will increase. This would lead to a rightward shift of the demand curve.
2. Income : if the income of a person increases, the person would be able to buy more quantities of goods and services. This would lead to a rightward shift of the demand curve for those goods.
Please find attached images of the demand curve
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you had purchased equipment for your business that was being depreciated over a 7-year life. the original cost of the equipment was $80,000 and $38,000 had been taken as cost recovery. today, you sold the equipment for $50.000. how much must be recaptured under section 1245 as ordinary income?
Answers
The amount that must be recaptured under Section 1245 as ordinary income is $8,000.
To calculate the amount that must be recaptured under Section 1245 as ordinary income, we first need to determine the adjusted basis of the equipment, which is the original cost minus any accumulated depreciation or cost recovery.
Adjusted basis = Original cost - Accumulated depreciation or cost recovery
Adjusted basis = $80,000 - $38,000
Adjusted basis = $42,000
We also need to determine the amount of gain on the sale of the equipment, which is the sale price minus the adjusted basis.
Gain on sale = Sale price - Adjusted basis
Gain on sale = $50,000 - $42,000
Gain on sale = $8,000
Under Section 1245 of the Internal Revenue Code, a portion of the gain on the sale of depreciable property may be treated as ordinary income. The amount of gain that is recaptured as ordinary income is equal to the lesser of:
The amount of depreciation or cost recovery previously claimed on the property (in this case, $38,000)
The amount of gain on the sale of the property (in this case, $8,000)
Since the gain on the sale of the equipment ($8,000) is less than the amount of cost recovery previously claimed ($38,000), the entire amount of gain on the sale is recaptured as ordinary income.
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The outward bowing shape of the production possibilities curve is due to ______.
Answers
The outward bowing shape of the production possibilities curve is due to: Increasing opportunity costs as more and more of one good is produced.
What is Production possibilities curve?A production possibility is a curve that shows the two combinations of goods an economy can produce given that its resources are fully employed.
The production possibility curves is bowed outwards because of increasing opportunity costs as more and more of one good is produced.
If more of one good is to be produced, more of the second good would be given up to increase the production of the first good.
Hence, the outward bowing shape of the production possibilities curve is due to Increasing opportunity costs as more and more of one good is produced.
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The California Food Handler Card law requires food handlers to _____.
wash their hands
register with the California Restaurant Association
take food management training
undergo basic food-safety training
Answers
Answer:
undergo basic food-safety training
Explanation:
The California Food Handler Card law demands that every restaurant employee be trained on food safety practices to eradicate or minimize the possibilities of transmitting diseases. The law requires a reasonable level of training to ensure conformity with best practices in food handling.
Each restaurant must maintain records showing each employee is trained and possesses a valid California Food Handler Card. The card should be availed on request by the local enforcement officials upon request.
Given total cost of producing your product is $7.7M, storing your product is $3.2M, and transportation of the product to the intended destination is $4.4M, what is the landed cost for your product?a) $3.4M b) $6.1M c) $9.7M d) $15.3M
Answers
Landed cost refers to the total cost of a product once it has arrived at its intended destination, including the cost of production.
storage, transportation, customs duties, taxes, and any other costs associated with getting the product to its final destination. It is an important metric for businesses that import or export products as i helps to determine the true cost of the product and its profitability.
In the given scenario, the total cost of producing the product is $7.7M, which includes the cost of raw materials, labor, and overhead costs. The cost of storing the product is $3.2M, which includes the cost of warehousing, handling, and insurance. The cost of transportation to the intended destination is $4.4M, which includes the cost of shipping or transportation, including fuel and other expenses.
To calculate the landed cost, we add up all these costs, including any customs duties, taxes, or other expenses incurred in getting the product to its final destination. In this case, we are only given the costs of production, storage, and transportation, so we simply add those up to get the landed cost of $15.3M.
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what are some potential challenges or limitations to marketing a food truck business?
Answers
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What is the meaning of Marketing?Marketing is the act of discovering, developing, and providing value to satisfy a target market's needs in the form of goods or services, which may also involve choosing a target audience.
Getting consumers interested in a company's goods or services is marketing's primary goal. This is accomplished by market research, analysis, and consideration of a company's ideal clients' interests, as well as by luring them in with messaging that would be instructive and beneficial to the target market.
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True or False?
Social workers work at both the state and national level.
Answers
Explanation: because true
The market risk, beta, of a security is equal to Group of answer choices the variance of the security's returns divided by the covariance between the security and market returns. the covariance between the security's return and the market return divided by the variance of the market's returns. None of the listed answers. the variance of the security's returns divided by the variance of the market's returns. the covariance between the security and market returns divided by the standard deviation of the market's returns.
Answers
Answer:
the covariance between the security's return and the market return divided by the variance of the market's returns
Explanation:
The market risk, beta of the security would be equivalent to the
Beta = Cov(rm, rs) ÷ Var(rm)
Rm denotes market return
rs denotes security return
Cov denotes covariance
Var denotes variance
Hence, the second option is correct
And, the rest of the options are wrong
There are 8,536 dog owners in a town and a pet supply store wants to survey those owners to determine what types of dog-grooming services and supplies they prefer. The researchers want to have completed surveys from 4 percent of the owners and experience has shown that 60 percent of all people asked will complete a survey. How many people should be selected to participate in order to have the correct number of completed surveys?
Answers
The number of people that need to be selected for the researchers to have the correct number of completed surveys is 569 people
How to find the number of people?First, find out 4% of the number of dog owners in town as this is the amount of people that the researchers want to complete surveys:
= Number of dog owners in town x 4%
= 8, 536 x 4%
= 341 people
This 341 people would then need to represent only 60% of the number of people that need to be selected to participate as only 60% of people complete surveys.
The number of people to be selected is:
= 4% of the people / 60 %
= 341 / 60%
= 569 people
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the investment industry categorizes firms according to size of capitalization. true or false
Answers
True. The investment industry categorizes firms according to the size of capitalization. Capitalization refers to the total value of a company's
Outstanding shares of stock, which is calculated by multiplying the stock price by the number of shares outstanding. Based on capitalization, firms are commonly classified into different categories such as large-cap, mid-cap, and small-cap. Large-cap companies have a significant market capitalization, typically exceeding billions of dollars. These firms are often well-established, have a stable market presence, and are considered relatively less risky. Mid-cap companies have a moderate market capitalization, These companies are typically newer, have a smaller market share, and are considered riskier but may offer higher growth potential. Categorizing firms based on capitalization allows investors and analysts to compare companies within similar size ranges and investment characteristics, assisting in portfolio management and investment decision-making.
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The following data (in thousands of dollars) have been taken from the accounting records of Davis Corporation for the just completed year. (Note that this is the same data as that provided for the question above.)
Administrative expenses $600
Direct labor 800
Finished goods inventory , beginning 280
Finished goods inventory , ending 640 Manufacturing overhead 920
Purchases of raw materials 480
Raw materials inventory , beginning 160
Raw materials inventory , ending 280
Sales 3,960
Selling expenses 560
Work in process inventory , beginning 280
Work in process inventory , ending 200
What was the net income for the year ( in thousands of doilars)? What wan the net inoome for the year?
Answers
The net income for the year was $1,080,000. to calculate the net income, we need to subtract the total expenses from the total revenue.
Total expenses = Administrative expenses + Manufacturing overhead + Selling expenses = $600,000 + $920,000 + $560,000 = $2,080,000
Total revenue = Sales = $3,960,000
Net income = Total revenue - Total expenses = $3,960,000 - $2,080,000 = $1,880,000
Therefore, the net income for the year was $1,080,000.
Net income is the profit earned by a company after deducting all expenses from the total revenue generated. In this case, we add up the administrative expenses, manufacturing overhead, and selling expenses to get the total expenses of $2,080,000. The total revenue is given as sales of $3,960,000. By subtracting the total expenses from the total revenue, we find the net income to be $1,880,000. However, the question asks for the net income in thousands of dollars, so we divide this value by 1,000 to get $1,080,000. Therefore, the net income for the year was $1,080,000.
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Fill in the blank cells
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number.
Enter all variances as positive values.
Actual Flexible Budget Variance Flexible Budget Sales-Volume Variance Static Budget
Revenue $205,000 $Answer Answer
$Answer $16,600 U $Answer
Variable Costs $Answer $Answer Answer
$36,150 $Answer Answer
$32,200
Contribution Margin $131,000 $23,450 U $Answer $20,550 U $175,000
Fixed Costs $Answer $2,350 F $74,400 $16,600 F $Answer
Operating Income $58,950 $21,100 U $Answer $3,950 U $84,000
Units Produced and Sold 10,000 389 F Answer Answer Answer
12,800 $Answer $16,600 U $Answer
Variable Costs $Answer $Answer Answer
$36,150 $Answer Answer
$32,200
Contribution Margin $131,000 $23,450 U $Answer $20,550 U $175,000
Fixed Costs $Answer $2,350 F $74,400 $16,600 F $Answer
Operating Income $58,950 $21,100 U $Answer $3,950 U $84,000
Units Produced and Sold 10,000 389 F Answer Answer Answer
12,800
Answers
Actual Flexible Budget Variance Flexible Budget Sales-Volume Variance Static Budget
Revenue $205,000 $197,400 $7,600 U $190,800
Variable Costs $36,150 $33,400 $2,750 U $32,200
In the given scenario, we are provided with actual values, flexible budget values, sales-volume variances, and static budget values for various financial metrics. Let's break down the explanation for each section:
Revenue:
Actual revenue is $205,000.
Flexible budget revenue is $197,400.
The flexible budget variance is calculated as the difference between actual and flexible budget revenue, which is $7,600 under budget.
The static budget revenue is $190,800.
Variable Costs:
Actual variable costs are $36,150.
Flexible budget variable costs are $33,400.
The flexible budget variance for variable costs is $2,750 unfavorable (over budget).
The static budget variable costs are $32,200.
Contribution Margin:
Actual contribution margin is $131,000.
Flexible budget contribution margin is $126,000.
The flexible budget variance for contribution margin is $5,000 unfavorable.
The sales-volume variance for contribution margin is $20,550 unfavorable.
The static budget contribution margin is $175,000.
Fixed Costs:
Actual fixed costs are $74,400.
Flexible budget fixed costs are $76,750.
The flexible budget variance for fixed costs is $2,350 favorable (under budget).
The static budget fixed costs are $74,400.
Operating Income:
Actual operating income is $58,950.
Flexible budget operating income is $49,250.
The flexible budget variance for operating income is $9,700 unfavorable.
The sales-volume variance for operating income is $3,950 unfavorable.
The static budget operating income is $84,200.
Units Produced and Sold:
Actual units produced and sold are 10,000.
Flexible budget units produced and sold are 10,389 (389 units over budget).
The sales-volume variance for units produced and sold is 389 units favorable.
The static budget units produced and sold are 12,800.
These calculations help in analyzing the actual performance of the company compared to the flexible and static budgets, identifying variances, and understanding the impact of sales volume on financial results.
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