Dehnert Midwifery's Cost Formula for Its Wages and Salaries Is

question 230

Multiple Choice

Dehnert Midwifery's cost formula for its wages and salaries is $2,030 per month plus $409 per birth. For the month of May, the company planned for activity of 112 births, but the actual level of activity was 114 births. The actual wages and salaries for the month was $50,800. The wages and salaries in the planning budget for May would be closest to:

• A)$47,838
• B)$50,800
• C)$49,909
• D)$48,656

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Definitions:

Equilibrium

Equilibrium is a state in which all forces or influences are balanced, in economic terms, it refers to the point where supply equals demand, resulting in market stability.

Spending Multiplier

The ratio of the change in total output induced by an autonomous change in aggregate spending to the size of that autonomous change.

Output Changes

This term refers to variations in the level of production or output in an economy over a specific period.

Aggregate Demand Curve

A graphical representation showing the relationship between the total demand for all goods and services in an economy and the overall price level.