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Q. Assume which the ABC Corporation has a production (and sales) capacity of $1,000,000 per month. Its fixed costs---over a considerable range of volume are $350,000 per month, and the variable costs are $0.50 per dollar of sales.
a. Illustrate what is the annual breakeven point volume (D')?
b. Illustrate would be the effect on D' of decreasing the variable cost per unit by 25% if the fixed costs thereby increased by 10%?
c. Illustrate would be the effect on D' if the fixed costs were decreased by 10% and the variable cost per unit were increased by the same percentage.
If the number of labor hours increases by 10% and the number of hours of capital used decreases by 10%, what is the percentage change in output.
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Coupled with $160 annual tax rebate per household. Will the household be better or worse off under the new program.
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Briefly discuss the impact of rational self-interest on each of the following decisions. Whether to attend college full time or enter the workforce full time.
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