The President of the Company,Gregory Peters,has Come to You for Help.Use

question 46

Essay

The president of the company,Gregory Peters,has come to you for help.Use the following data to prepare a flexible budget for possible sales/production levels of 10,000,11,000,and 12,000 units.Show the contribution margin at each activity level.
$\begin{array}{ll}\text { Sales price } & \$ 24 \text { per unit } \\\text { Variable costs: } & \\\text { Manufacturing } & \$ 12 \text { per unit } \\\text { Administrative } & \$ 3 \text { per unit } \\\text { Selling } & \$ 1 \text { per unit }\\\text { Fixed costs: }\\\text { Manufacturing } & \$ 60,000 \\\text { Administrative } & \$ 20,000\end{array}$

Identify the components and calculations involved in determining aggregate expenditure.

Explain the concept of value added by a firm and its significance in GDP calculation.

Differentiate between injections and leakages in the circular flow model and their impacts on GDP.

Interpret the effects of external trade activities and government transactions on GDP.

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Definitions:

Worm Gear

A type of gear consisting of a worm (screw) that meshes with a gearwheel, used in mechanisms where large gear reductions are needed.

Preload

A predetermined force applied to a component, such as a bearing on assembly, usually with the objective of preventing unwanted (end) play in operation.

Endplay

The axial movement or float of a shaft or part within its housing, which can be critical for the proper functioning of mechanical systems.

Hydrostatic Systems

Systems that use a liquid under pressure to transfer force or motion, often found in hydraulic machinery and equipment.