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Question - Econ Pty Ltd produced and sold 45,000 units of a single product last year. Data concerning the year's profit and loss statement are as follows:
Sales revenue $1,350,000
Manufacturing costs
Variable $585,000
Fixed $270,000
Selling costs
Variable $40,500
Fixed $544,000
Administrative costs
Variable $184,500
Fixed $108,000
Econ sells 45,000 units per year, sales revenue is $1,350,000, variable costs are $810,000 and fixed costs are $922,000. What was Econ's total contribution margin for the year?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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