RoyalGurl01

16.07.2019 • 

Business

Suppose that the government believes the economy is not producing goods and services at its optimal level. in an attempt to stimulate the economy, the government increases the quantity of money in the economy by printing more money. this monetary policy the economy's demand for goods and services, leading to product prices. in the short run, the change in prices induces firms to produce goods and services. this, in turn, leads to a level of unemployment. in other words, the economy faces a trade-off between inflation and unemployment: higher inflation leads to unemployment.

Ответ:

julih74

17.05.2021

Business

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Option (a) is correct.

Explanation:

Manufacturing cost:

= Direct materials + Direct labor + Variable overhead + Fixed overhead

= $80,000 + $100,000 + $30,000 + $60,000

= $270,000

Purchase from outside:

= Fixed overhead + Purchase price

= $60,000 + (50,000 × $10)

= $60,000 + $500,000

= $560,000

Effect on income = Purchase from outside - Manufacturing cost

                            = $560,000 - $270,000

                            = $290,000

Therefore, the above calculations shows that income will decrease by $290,000.

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