During heaton company’s first two years of operations, the company reported absorption costing net operating income as follows: year 1 year 2 sales (@ $25 per unit) 1,000,000 1,250,000 cost of goods sold (@ $18 per unit) 720,000 900,000 gross margin 280,000 350,000 selling and administrative expenses* 210,000 230,000 net operating income 70,000 120,000 * $2 per unit variable; $130,000 fixed each year. the company’s $18 unit product cost is computed as follows: direct materials $ 4 direct labor 7 variable manufacturing overhead 1 fixed manufacturing overhead ($270,000 ÷ 45,000 units) 6 absorption costing unit product cost $ 18 forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. production and cost data for the two years are:

Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. the economist proposes the following relationship: p=a x m - p=price level - m=money supply - a=a composite of other factors, including real gdp, that change very slowly over time. how might an economist gather empirical data to test the proposed relationship between money and the price level? an economist would persuade the federal reserve to change the money supply to various levels, and observe the resulting changes in the price level. unlike researchers in the hard sciences, economists cannot study complex relationships using data. economists do not usually develop theoretical models of the economy but only analyze summary statistics about the current state of the economy. an economist would look for data on past changes in the money supply, and note the resulting changes in the price level

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ

Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?