20 2020

Q.2.4

Calculate the tax revenue to the government of this country when the economy

remains in equilibrium.

(2)

Q.2.5

(6)

Calculate what the new equilibrium income should be if the government of this

country decides to cancel all taxes, implying the tax rate would now be 0%.

Q.2.6

(4)

Before the government decreased the tax rate, how much of government

spending was required to bring the economy to full employment?

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false

You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (leave no cells blank - be certain to enter "0" wherever required. do not round intermediate calculations. enter your answers in millions.) a. what will profits be if sales turn out to be $1.5 million?