unemployment results when group of answer choices the quantity of labor demanded is less than the quantity of labor supplied at the going wage rate. the quantity of labor demanded is greater than the quantity of labor supplied at the going wage rate. the wage is below the level that balances supply and demand for labor. there is a shortage of workers.

The company's stock currently trades at $31 a share. gamma is considering a plan shares of common stock outstanding. Gamma Industries has exactly shares $99.99.

Gamma industry 1,830,000 outstanding shares of common stock and a net income of $1,600,000.

Hence, its earnings per share are $1,600,000 + 1,830,000 = $0.8743.

Currently, the stock is trading at $75.

Hence, the Price Earnings Ratio = $75. $0.8743\s=85.7829

Currently, the corporation wishes to buy back 25% of its outstanding shares,

or 1,830,000 x (25/100) = 457,500.

1,830,000 shares remain outstanding after - 457,500, for a total of 1,372,500.

As a result, the earnings per share following the repurchase were $1.1657 ($1,600,000 + $1,372,500).

As a result, the stock price after the repurchase is calculated as follows:

Price Earnings Ratio x Earnings per Share after Repurchase = 85.7829 x $1.1657 = $99.99. (Note the unaltered price-to-earnings ratio).

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Drake's company aims to set a high price initially for a new product and then decrease it to a more sustainable level for the long term, which represents a pricing objective of price skimming.

Drake's company is using a pricing objective called "skimming pricing." Skimming pricing is a strategy of initially charging a high price for a new product to maximize revenue from early adopters and then gradually lowering the price to attract more price-sensitive customers over time.

This approach is often used for innovative products that have a limited customer base willing to pay a premium price. The goal of skimming pricing is to capture the maximum profit from the market before competitors enter and prices are driven down.

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Answer: 1. Add the cost to the price of goods

2. Negotiate with carriers.

3. By using the cost allocation method

4. By implementing cost-cutting measures

Explanation:

The cousin's basis in the land is $30,000, which is the original cost to the taxpayer, as the gift tax paid does not affect the basis.

The cousin's basis in the land is equal to the taxpayer's basis at the time of the gift, which is $30,000. The gift tax paid by the taxpayer is not relevant to the cousin's basis calculation.

The taxpayer is required to file a gift tax return to report the gift since it exceeded the annual gift exclusion of $15,000. However, the taxpayer does not owe any gift tax on the transfer because it is below the lifetime gift tax exemption amount, which was $11.7 million in 2021.

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As part of their audit procedures, auditors must be aware of subsequent events that may impact the financial statements of the client.

Subsequent events are events or transactions that occur after the client's year-end, but before the financial statements are issued or available for issuance.

These events can be classified as either "recognized" or "non-recognized" subsequent events.Recognized subsequent events are those that provide evidence of conditions that existed at the year-end.

For example, a customer lawsuit that was filed after year-end but pertains to a transaction that occurred before year-end would be a recognized subsequent event.

The auditor must evaluate the impact of recognized subsequent events on the financial statements and ensure that appropriate adjustments are made.

Non-recognized subsequent events are those that provide evidence of conditions that did not exist at the year-end but arose after the year-end.

These events can be important to the auditor because they may require adjustments to the financial statements or disclosure to prevent them from being misleading.

For example, if the client's inventory is destroyed by a fire after year-end, the auditor must evaluate the impact of the event on the financial statements and ensure that appropriate adjustments are made.

In the case of asset obsolescence, subsequent events may provide evidence that the client's assets are no longer useful or valuable. If this is the case, the auditor must evaluate the impact of the event on the financial statements and ensure that appropriate adjustments are made.

If the assets are no longer useful, the auditor may need to revalue them at a lower amount or write them off altogether.

Overall, auditors must be aware of subsequent events that may impact the financial statements of the client. They must evaluate the impact of these events and ensure that appropriate adjustments or disclosures are made to prevent the financial statements from being misleading.

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Getting ready, reading, jotting down significant points, and reviewing. The most crucial step in the note-taking procedure is to continue taking notes.

Making notes helps you avoid feelings of distraction or drowsiness by keeping your body active and alert. stimulates the mind. Your mind stays actively preoccupied with what you pay attention to when you listen intently and decide what to include in your notes. Taking notes forces you to pay attention and makes you alert in class. It makes analysis possible. According to learning research, actively engaging with a subject by listening and then summarising what you pay attention to facilitates later recognition and consideration of the material. Take notes that are prepared, brief, visually clear, and based so that you can subsequently review and understand them. For more information, see the different note formats below. if you want your notes to be succinct and concise,

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Factory worker, supermarket cashier, and short-order cook are all examples of occupations with high levels of job strain.

"What is job strain"? Job strain is a common work-related stressor that results from an individual's lack of control over job demands. When job demands are high and the worker has little control over how they perform their job duties, job strain may occur. Job strain is common in occupations that involve high levels of responsibility and the need to perform demanding work duties on a daily basis.

Supermarket cashier, factory worker, and short-order cook are all examples of occupations with high levels of job strain because they require a lot of physical and mental effort to perform their duties.

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The market structure where consumers have a wide range of choices among similar but not identical products is known as monopolistic competition.

In this type of market, there are many producers of the same or similar products, but each producer has some degree of control over the price due to differentiation. In monopolistic competition Producers compete on various factors such as quality, style, design, and customer service to differentiate their products from others.

Consumers have the freedom to choose from different products and can switch to a competitor's product if they are not satisfied with the quality or price of their current product.

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The present value of the principal is $3,270,300.

The present value of the principal is calculated as follows: The amount of the bond payable semi-annually is given by the formula:PMT = (Stated interest rate * Face value) / Number of payments per yearSubstituting the values given:PMT = (6% * $3,000,000) / 2= $90,000The present value of an annuity of $1 for eight years at a 6% interest rate and two payments per year is 6.210.

The present value of an annuity of $1 for eight years at an 8% interest rate and two payments per year is 5.747.The present value of the principal is calculated as follows:PV = (PMT * PV annuity factor) + (Face value * PV factor)PV = ($90,000 * 6.210) + ($3,000,000 * 0.627)PV = $1,389,300 + $1,881,000PV = $3,270,300.

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Direct purpose of internal controls to improve the accuracy and reliability of accounting information. Correct answer is option: 1.

The direct purpose of internal controls is to ensure that a company's financial information is accurate, reliable, and consistent. Internal controls are policies, procedures, and practices that are put in place to safeguard a company's assets, prevent fraud and errors, and ensure compliance with applicable laws and regulations. By improving the accuracy and reliability of accounting information, internal controls help companies make better business decisions and reduce the risk of financial losses. Internal controls are essential for effective corporate governance and are a key element in ensuring the integrity and transparency of financial reporting. Option 1 is correct.

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-- The complete question  is, What is a direct purpose of internal controls?

Replacing a traditional risk management program with an enterprise risk management program may be challenging for a firm because Implementing.

Because it necessitates considerable modifications to the organization's current processes and procedures, implementing an enterprise risk management programme to replace a standard risk management programme can be difficult for a company.

This calls for the creation of a culture of risk awareness, the implementation of a complete risk management programme, and its integration with the broader operations of the business. An enterprise risk management programme must also be customised to the firm's needs and continually reviewed and updated to account for shifting circumstances.

To guarantee the programme is successful and achieves the organization's goals, a significant amount of time and money must be invested.

Moreover, partnerships with external suppliers must be built and maintained.

Complete Question:

Replacing a traditional risk management program with an enterprise risk management program may be challenging for a firm because ____________.

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The contribution margin calculated on the basis of given information is $260,000.

The contribution margin is calculated as the difference between sales revenue and variable costs. In this case, sales revenue is $750,000, and the variable costs of goods sold and variable selling and administrative expenses are $400,000 and $90,000, respectively.

Thus, the total variable costs are $490,000 ($400,000 + $90,000). Subtracting the variable costs from the sales revenue gives the contribution margin of $260,000 ($750,000 - $490,000). This represents the amount of revenue that is available to cover fixed costs and provide profit.

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John Blakemore's property tax is $5,891.94.

Property tax is a tax that homeowners pay to the local government based on the value of their property.

In John Blakemore's case, his home is located in Columbus, Ohio, where the rate of assessment is 35% of market value. This means that the local government assesses his home to be worth 35% of its market value, which is $275,000 in this case.

To calculate the assessed value of John Blakemore's home, we need to multiply the market value by the assessment rate:

Assessed value = market value x assessment rate

Assessed value = $275,000 x 0.35

Assessed value = $96,250

Now that we have the assessed value of the property, we can calculate the property tax. The tax rate in Columbus, Ohio, is $61.23 per $1,000 of assessed value. To calculate the property tax, we need to multiply the assessed value by the tax rate and then divide by 1,000:

Property tax = (assessed value x tax rate) / 1,000

Property tax = ($96,250 x $61.23) / 1,000

Property tax = $5,891.94

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The current rate on two-year Treasury securities should be 4.7%.

The formula to compute the current rate on two-year Treasury securities is given as follows:

R2 = R1 + LP2Here, R2 represents the rate on two-year Treasury securities, R1 represents the one-year Treasury bill rate, and LP2 represents the liquidity premium on two-year securities. We are given that the one-year Treasury bill rate is 4.15%, and it will increase to 4.95% in one year. Therefore, R1 = 4.15%, and R1' = 4.95%.

We have to find the rate on two-year Treasury securities, R2. The liquidity premium on two-year securities is 0.55%, which means LP2 = 0.55%.Now we can plug in the values in the formula to get R2 as follows:R2 = R1 + LP2 = 4.15% + 0.55% = 4.7%.

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The expected EUAC for the equipment is option (a) $46,460

To calculate the expected equivalent uniform annual cost (EUAC) of the equipment, we need to calculate the present worth of all the costs and benefits associated with the equipment and then calculate the EUAC using the following formula

EUAC = (P/A, i%, n) - (S/A, i%, n)

where:

P = present worth of all costs (initial cost and O&M costs)

S = salvage value

i = interest rate

n = life of the equipment

(A/A, i%, n) is the annual equivalent factor.

First, we calculate the present worth of all costs

PW = P + (A/P, i%, n) x O&M - (F/P, i%, n) x S

where:

P = initial cost = $100,000

O&M = annual O&M cost = $20,000

S = salvage value = $10,000

i = interest rate = 10%

n varies from 5 to 9 years with associated probabilities.

Using the probability-weighted average approach, we can calculate the expected present worth of all costs as follows

PW = (0.3 x 100,000 x (P/F, 10%, 5)) + (0.1 x 100,000 x (P/F, 10%, 6)) + (0.15 x 100,000 x (P/F, 10%, 7)) + (0.2 x 100,000 x (P/F, 10%, 8)) + (0.25 x 100,000 x (P/F, 10%, 9)) + (20,000 x (A/P, 10%, n)) - (10,000 x (F/P, 10%, n))

where:

(P/F, i%, n) is the present worth factor

(A/P, i%, n) is the annual equivalent factor.

Solving for PW, we get:

PW = $354,022.83

Next, we calculate the annual equivalent factor:

(A/A, 10%, n) = (i(1+i)^n)/((1+i)^n-1)

Using this formula, we get the following annual equivalent factors for n varying from 5 to 9 years

n=5: (A/A, 10%, 5) = 0.2638

n=6: (A/A, 10%, 6) = 0.2432

n=7: (A/A, 10%, 7) = 0.2251

n=8: (A/A, 10%, 8) = 0.2089

n=9: (A/A, 10%, 9) = 0.1943

Finally, we can calculate the expected EUAC as follows

EUAC = (PW x (A/A, 10%, n)) - (S x (A/P, 10%, n))

Using the probability-weighted average approach, we can calculate the expected EUAC as follow

EUAC = (0.3 x 354,022.83 x 0.2638) + (0.1 x 354,022.83 x 0.2432) + (0.15 x 354,022.83 x 0.2251) + (0.2 x 354,022.83 x 0.2089) + (0.25 x 354,022.83 x 0.1943) - (10,000 x (A/P, 10%, n))

For n varying from 5 to 9 years, the EUAC can be calculated as follows:

n=5: EUAC = $46460

Therefore, the correct option is (a) $46,460

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Agreements to form a partnership may be oral, written, and implied by conduct. These are the three options that can be chosen from the given options.

There is no requirement for there to be three or more partners for an agreement to be implied. Implied agreements can exist even if there are only two partners involved. A partnership is a legal form of business ownership in which two or more people work together to achieve a common goal.

Partnerships can be formed for a variety of reasons, such as to pool resources, share expenses, or take advantage of complementary skills. The type of agreement used to form a partnership can vary depending on the preferences of the partners involved.

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In the Job Characteristics Model (JCM), the dimension that has the greatest impact on the job MPS (Motivating Potential Score) is skill variety.

The Job Characteristics Model (JCM) is a tool for describing jobs as stimulating and motivational for employees by increasing their sense of responsibility, achievement, and personal growth. It is based on the premise that the central aspect of job satisfaction is the extent to which jobs fulfill the characteristics that an employee expects it to have. It is a theory of work design that emphasizes the importance of designing jobs that meet employees' motivational needs by considering their characteristics.

It proposes that there are five core job characteristics that are related to critical psychological states, which in turn influence personal and work outcomes. The five job characteristics in the Job Characteristics Model are:Skill varietyTask identityTask significanceAutonomyFeedback.Motivating Potential Score (MPS) is a measure used to assess the potential of a job to motivate employees. It is calculated using the Job Characteristics Model's five dimensions to assess the level of challenge and skill required to perform a job.

MPS measures the degree to which a job's characteristics are motivating and encouraging for an employee, which contributes to their performance, job satisfaction, and growth potential. MPS is a number that ranges from 0 to 100, with higher scores indicating greater motivation potential.

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The record in Arizona that is considered sufficient disclosure to owners and potential buyers of property in an airport influence area is the Airport Disclosure Record.

The Airport Disclosure Record is a form that is used to inform property owners or potential buyers in an airport influence area. The form is a requirement by the Federal Aviation Administration, it helps property owners understand the potential risks involved with owning or operating a property within an airport influence area. The disclosure record provides information about airport operations, potential noise impacts, and other issues that could affect the value or use of the property.

In Arizona, the Airport Disclosure Record is considered sufficient disclosure to owners and potential buyers of property in an airport influence area. It is a legal requirement that must be completed and filed with the state before the property can be sold or transferred. The Airport Disclosure Record is designed to protect both the buyer and the seller by ensuring that all parties have access to important information about the property's location and potential risks. The record in Arizona that is considered sufficient disclosure to owners and potential buyers of property in an airport influence area is the Airport Disclosure Record.

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The following statements about in-transit inventory are correct i. inventory is in-transit for the total lead time and iv. inventory in-transit is not used up.

The correct option is I and IV

In general , In-transit inventory refers to the goods that are currently in the process of being transported from one location to another. The total lead time includes the time it takes for the goods to be produced, processed, and shipped from the supplier to the buyer.

Also , In-transit inventory is still in transit and has not yet reached its destination. It is not considered as part of the cycle stock, which is the inventory that is regularly used up during production or sales. In-transit inventory is not used up until it arrives at its final destination and is processed or sold.

Hence, I and IV are the correct options

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On the basis of mentioned Covington's expected terminal enterprise value is calculated out to be $16.23 per share.

To calculate Covington's expected terminal enterprise value, we first need to calculate the terminal free cash flow at the end of year 4.

Using the perpetuity formula, we can find the present value of the expected cash flows beyond year 4:

PV = FCF / (r - g)

where PV is the present value, FCF is the free cash flow in year 5, r is the weighted average cost of capital(WACC) , and g is the growth rate.

FCF5 = FCF4 x (1 + g) = $35 million x 1.028 = $35.98 million

Plugging in the values, we get:

PV = $35.98 million / (0.12 - 0.028) = $405.96 million

Next, we need to calculate the total enterprise value at the end of year 4:

TEV4 = PV of year 1-4 free cash flows + PV of year 5 terminal value

TEV4 = ($12 million / 1.12) + ($18 million / 1.12²) + ($22 million / 1.12³) + ($35 million / 1.12⁴) + $405.96 million

TEV4 = $9.77 million + $13.31 million + $15.29 million + $23.36 million + $405.96 million

TEV4 = $467.69 million

Finally, we can calculate the expected terminal enterprise value by adding Covington's cash and subtracting its debt, then dividing by the number of outstanding shares:

Expected terminal enterprise value = (TEV4 + cash - debt) / shares outstanding

Expected terminal enterprise value = ($467.69 million + $80 million - $60 million) / 30 million

Expected terminal enterprise value = $16.23 per share

Therefore, Covington's expected terminal enterprise value is $16.23 per share.

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The function of management that creates a well-designed road map of the actions needed to lead a company forward is Planning.

The management function that lays the groundwork and creates a well-designed road map for the actions needed to lead a company forward is the "Planning" function. Planning involves defining goals, developing strategies, outlining tasks and schedules, and allocating resources to achieve those goals.

It provides direction and purpose to an organization by outlining what needs to be accomplished and how to achieve it. Without a well-designed plan, an organization may lack direction and focus, and may not be able to effectively allocate resources and achieve its goals.

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The given question is incomplete, the complete question is:

Which functions of management lays the groundwork and creates a well-designed road map of the actions needed to lead a company forward ?

The incorrect answer. in completing a 2021 form w-4, employees may claim additional deductions in step d. if they have high levels of interest and dividend income.

When completing a 2021 form W-4, employees may claim additional deductions in step 4, and they can claim additional allowances if they expect to have large amounts of itemized deductions, deductible IRA contributions, or they are paying deductible alimony. However, they cannot claim additional allowances if they have high levels of interest and dividend income.Step 4 of the 2021 Form W-4 is used to adjust for deductions, and it has three sections, each of which corresponds to a specific tax credit or deduction.

Employees should fill out step 4 if they expect to claim tax credits or deductions other than the standard deduction.To sum up, employees may claim additional deductions in step 4 of a 2021 form W-4 if they have deductible IRA contributions, if they expect to have large amounts of itemized deductions, or if they are paying deductible alimony. They cannot claim additional deductions if they have high levels of interest and dividend income. The incorrect answer. in completing a 2021 form w-4, employees may claim additional deductions in step d. if they have high levels of interest and dividend income.

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To compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods, we need more information such as the cost of goods sold and average inventory.

Without that information, we cannot compute the inventory turnover ratio, and thus cannot determine which costing method is a more accurate indicator of inventory management efficiency.

The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a specific period. It is computed by dividing the cost of goods sold by the average inventory for that period. The FIFO and LIFO methods are two common inventory costing methods used to determine the cost of goods sold and ending inventory.

Under the FIFO method, the first items purchased are the first items sold, while under LIFO, the last items purchased are the first items sold. The choice of inventory costing method can have a significant impact on the reported cost of goods sold, gross profit, and net income.

However, determining which costing method is a more accurate indicator of inventory management efficiency depends on the specific circumstances of the business.

In general, the FIFO method tends to provide a more accurate picture of the cost of goods sold, as it reflects the actual flow of inventory. On the other hand, the LIFO method may be more useful in periods of rising prices, as it tends to result in lower taxable income and higher cash flow.

Ultimately, the choice of inventory costing method should be based on a careful analysis of the business's needs and goals, as well as the specific characteristics of its inventory and pricing environment.

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The taxpayer's AGI for year 3 is $24000. So the option A is correct.

The taxpayer's AGI for Year 3 would be $20,000 ($4,000 interest income + $12,000 wages + $8,000 gain from the sale of Property A).

Since the taxpayer does not meet the requirements for the rental real estate exceptions, the losses from Property A and the income from Property B are not taken into consideration for calculating AGI.

Therefore, the $8,000 gain from the sale of Property A is the only passive activity that is taken into account when calculating AGI.

Sale value of property A = $8000

Wages = $12000

Interest Income = $4000

Total AGI = Sale value of property A + Wages + Interest Income

Total AGI = $8000 + $12000 + $4000

Total AGI = 24000 $

So the option A is correct.

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The complete question is:

The following information applies to a taxpayer who owns two rental properties, Property A and Property B, and has no other involvement in passive activities:

                                  Year 1                     Year 2                     Year 3

Property A loss         $14,000                 $9,000                       $0

Property B income   $5,000                   $3,000                       $0

The taxpayer does not meet the requirements for the rental real estate exceptions. In year 3, Property A is sold to an unrelated party for an $8,000 gain, Other income for year 3 Includes $4.000 interest income and $12,000 wages. What is the taxpayer's AGI for year 3?

Multiple Choice

A. $24,000

B. $9,000

C. $16,000

D. $12,000

Diversifying production in China can help Jaguar-Land Rover tap into a growing market, reduce costs, and increase their competitiveness in the global luxury car market.

Based on the statistics provided, it makes sense for Jaguar-Land Rover to diversify production into China because the Chinese market is a significant source of demand for their products.

With one in five purchases coming from Chinese buyers and an 80% increase in sales since 2015, it is clear that there is a strong demand for luxury cars in China. By diversifying production into China, Jaguar-Land Rover can potentially reduce costs associated with importing cars from their existing production facilities, while also gaining a greater understanding of local customer preferences and increasing their brand presence in the Chinese market.

Additionally, producing vehicles in China may allow the company to take advantage of local incentives and regulations that are designed to promote the growth of the domestic auto industry.

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Employees without formal power positions can exercise significant personal power in an organization by creating a sense of influence or credibility among their colleagues.

This personal power is often based on their expertise, knowledge, and personal charisma, and it can be just as influential as the formal power that comes with a job title or position. By gaining the respect and trust of their coworkers, these individuals can influence decisions and outcomes in the workplace.

For example, a senior salesperson who has been with the company for many years may not hold a formal management position but may still have significant influence within the sales team due to their experience and expertise.

Similarly, an employee who is particularly skilled at building relationships with clients may be able to influence decisions and outcomes related to customer service and retention, even if they do not hold a formal leadership position.

In essence, personal power is derived from an employee's ability to influence others through their personal attributes, rather than their position or authority within the organization.

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Estimated variable cost of sales per unit sold = Change in cost of sales / Change in units sold = $30,600 / 2,240 = $13.66.To calculate the estimated total fixed cost using the high-low method, we can use the formula: Estimated total fixed cost = Total cost - (Estimated variable cost per unit x Total units)

To calculate the break-even point in units, we can use the formula:

Break-even point (units) = Fixed costs / (Selling price per unit - Variable costs per unit)

Using the original numbers, we get:

Break-even point (units) = $975,000 / ($30 - $17.50) = 65,000 units

If the variable costs per unit decrease to $16.65 and fixed costs increase to $1,041,300, the break-even point in units would be:

Break-even point (units) = $1,041,300 / ($30 - $16.65) = 78,000 units

To calculate the estimated variable cost of sales per unit sold using the high-low method, we need to find the change in cost of sales and the change in units sold between the highest and lowest months.

Using the highest and lowest months (April and January), we get:

Change in cost of sales = $64,000 - $33,400 = $30,600

Change in units sold = 2,700 - 460 = 2,240

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In the figure of shaded areas indicate recessions and white areas indicate booms, the macroeconomic-variable that is plotted in figure is (b) Unemployment Rate.

The "Unemployment-Rate" is a macroeconomic variable that measures the percentage of the labor force that is currently unemployed but seeking employment and willing to work at the prevailing wage rate.

The labor force consists of all employed and unemployed people in an economy who are of working age and are either employed or actively seeking employment.

In the given diagram the drawn line rises during "recession-period" and falls in "boom-time" period.

In recession the "production-level" decrease and this decrease  employment level. As a result, "unemployment-rate" increase.

In boom time period, the "production-level" increase and this increase the employment level. As a result, "unemployment-rate" decrease.

So, the given figure represents unemployment rate.

Therefore, the correct option is (b).

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The given question is incomplete, the complete question is

In the figure below shaded areas indicate recessions and white areas indicate booms.

Which macroeconomic variable is plotted in this figure?

(a) Dow Jones Industrial Index

(b) Unemployment Rate

(c) GDP growth rate

(d) Aggregate Investment

(e) Aggregate Consumption.

As markets become more turbulent and unpredictable, seizing opportunities to establish competitive advantage depends primarily upon the ability of a business to be agile and adapt quickly to changing market conditions.

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A fast-food chain looking to expand its business on a global scale by allowing interested parties in different parts of the world to open fast-food restaurants under its brand name where these interested parties must pay an initial fee to the owner of the fast-food chain and additionally pay a portion of profits on a monthly basis is an example of franchising.

A franchise is a method of distributing goods or services in which a franchisor grants an operator the right to market its goods or services under its brand name and guided by its system in exchange for a fee. The franchisor typically provides assistance in the areas of marketing, finance, and sometimes site selection. Franchising is a model of business in which an existing firm or parent company grants or licenses its trademarks, products, or services to independent individuals or other organizations for use in the distribution of goods or services.

For example, if an individual wanted to open a fast-food restaurant under a well-known fast-food chain, they would be required to pay an initial franchise fee to the parent company in addition to a portion of their profits on a regular basis. This allows the parent company to expand its business without having to invest its own funds in the creation of new branches.

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