Question 3 (4 points) The Rubber Division is considering selling 3,000 kilograms (kg) of rubber to the Tire Division of the same company. Rubber Division data is as follows: Capacity 150,000 kg
Amount sold to outside customers 149,000 kg
Selling price per kg to outside customers $6.00
Variable cost per kg 2.50 Fixed cost per kg (based on capacity) $$1.50 Assume that $0.50/kg in variable selling costs can be avoided on intracompany sales. The Tire Division currently purchases rubber from an external supplier for $4.00/kg. Required: 1. What is the minimum acceptable price the Rubber Division will accept as a transfer price? (3 marks) 2. Should the Tire Division accept the price calculated in part 1? Why? (1 mark)

Answers

Answer 1

To determine the minimum acceptable transfer price for the Rubber Division, we need to consider the variable cost per kg plus the opportunity cost of selling the rubber to an outside customer.

The variable cost per kg is $2.50, and the opportunity cost is the outside selling price of $6.00 per kg minus the variable selling costs of $0.50 per kg, which equals $5.50 per kg. Therefore, the minimum acceptable transfer price is:

Variable cost per kg + Opportunity cost per kg

= $2.50 + $5.50

= $8.00 per kg

So, the Rubber Division should not accept a transfer price lower than $8.00 per kg.

The Tire Division should accept the transfer price of $8.00 per kg if it is lower than the current purchase price from the external supplier of $4.00 per kg. However, if the Tire Division can negotiate a lower purchase price from the external supplier, then it may not be in their best interest to accept the transfer price of $8.00 per kg. The decision should be based on the cost-benefit analysis and the overall profitability of the company.

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Related Questions

what multiplication do you do to convert currency ​

Answers

To convert from the base currency, we multiply by the exchange rate. Just like multiplying to apply a commodity price.

Hope it helpss:))

Explanation:

you multiply by the exchange rate.

According to the law of supply what's the result of an increase in the supply of workers for a job if all other factors remain equal?

Answers

Answer:

According to the law of supply, an increase in the supply of workers for a job if all other factors remain equal means the company wants to be efficient and it is also proof that the company is making more profit which signals the demand for the commodities they produced as increased drastically.

Explanation:

The law of supply work in the dimension of price, the number of goods available in the market, and it is hugely affected by demand. Now, when the price of goods decreases, it makes production by producers decrease as well and staffs are also laid off to avoid profit loss by the producers. This changes when the price of commodity increases as it makes producers of the commodity have the capacity to employ more staff to maximize time and this also causes the producers to increase sales. However, the higher demand for a commodity would also increase the supply of that commodity.

Answer:

The wage rate for that job will be pushed down.

Explanation: I just took the test and got it right

Karan agrees to sell the product of his field to Raman on 1st February 2023. On 1st January 2023, the state government makes a Law to purchase all the crops from the producers. Here in spite of the desire to sell the produce to Raman, Karan is rendered helpless, and performance is made impossible by law. Â On basis of which principle, the contract is termed void?

Answers

The contract between Karan and Raman is termed void based on the principle of "Supervening Impossibility."

This principle states that a contract becomes void when its performance is made impossible by a change in circumstances that is beyond the control of the parties involved. In this case, the change in circumstances is the Law made by the state government to purchase all the crops from the producers.

As a result, Karan is rendered helpless and unable to sell the product of his field to Raman as previously agreed upon. Therefore, the contract is termed void due to Supervening Impossibility.

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Legal authorization by a brand owner to allow another company to "rent" its brand name for a fee is called

Answers

Answer:

The appropriate answer is "License agreement".

Explanation:

A written agreement only between various firms where a property owner allows perhaps another entity throughout accordance with a certain set of requirements called a license agreement.In so far as it has jurisdiction, the consequence including its license is to terminate or ease the ruling of conflict. It should be the presumption that perhaps the license should be a province of security.

If you wanted to make sure a company has enough money available to pay its bills, which financial statement would
be most helpful?
А. Balance sheet
B. Income statement
C. Statement of owners' equity
D. Cash flow statement

Answers

Answer:

D. Cash flow statement

Explanation:

that is the answer

hope I helped you

Rosie's has 1,300 shares outstanding at a market price per share of $10. Sandy's has 2,000 shares outstanding at a market price of $23 a share. Neither firm has any debt. Sandy's is acquiring Rosie's. The incremental value of the acquisition is $1,800. What is the value of Rosie's to Sandy's

Answers

Answer:

$14,800

Explanation:

Rosie's has 1,300 shares outstanding at a market price of $10

Sandy's had 2,000 shares outstanding at a market price of $23

The incremental value of the acquisition is $1,800

Therefore, the value of Rosie's to Sandy's can be calculated as follows

=( 1,300×$10)+$1,800

= $13,000+$1,800

=$14,800

Hence the value of Rosie's to Sandy's is $14,800

How does customer demand affect imports and exports?

Answers

Answer:

A country's balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. These include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.

Explanation:

how Is productivity determined?
a.by measuring The relationship to inputs and outputs
b. by comparing the profitability of competing markets
c. by measuring the relationship between supply and demand
d. by comparing the number of hours worked by all employees

Answers

Answer:

a. by measuring The relationship to inputs and outputs

Explanation:

Productivity shows the efficiency of generating output using the available inputs. It is measured by dividing the output of a company or a production line by the inputs used. Therefore, productivity shows the relationship between inputs and outputs.

Productivity can also be measured by labor output. In this case, the output is divided by the number of labor hours used.

Identify the method of online advertising based on the given scenario. Zara wants to promote her handmade jewelry business by writing about it in her online blog. She wants more and more people to visit her blog and boost her business. In every blog post, Zara inputs a few key words used by people when making searches online. She wants her blog to appear above other websites in search engine results. Zara is employing the______ method of online advertising.​

Answers

Answer:

Search Engine Optimization (SEO)

Explanation:

I got this on PLATO it could be wrong as i'm still taking the test but this is the most logical answer when I looked at the different types, this one includes using keywords in her blog to get the search engine to pick up on those words if that makes sense.

Edit: Took the test and that answer is correct on PLATO (make sure you use CAPS Search Engine Optimization)

what effect will an overstatement of ending inventory at the end of year 1 have on the amounts reported on the year 1 financial statements?

Answers

An overstatement of total assets on the amount reported on the year 1 financial statement will result from an overstatement of ending inventories at the end of year 1.

Since ending inventory at year's end is overestimated, closing stock in current assets will also show an overblown result, which will lead to an overstated result for total assets on the balance sheet.

Ending stock is a resource, not a cost. The cost of the inventory is recognized as an expense when it is sold, and the sum is then added to the company's cost of goods sold for the time period.

A corporation will have an inflated net income if its assets are overstated or its obligations are understated, which translates to retained earnings on the balance sheet and raises shareholders' equity.

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One cost of starting your own business is
A. Loan payments on a small business loan
B. Escrow
C. Revenue
D. PMI

Answers

the answer is A. loan payments on a small business loan

Answer:

A. Loan payments on a small business loan

Explanation:

One cost of starting your own business is loan payments on a small business loan.

Exercise 5-3 Recording journal entries for merchandise purchase transactions-perpetual LO3 Jaleh Mehr is the owner of the retail store 151 Jeans. She purchases jeans from a number of manufacturers to bring great style and fit to her customers. Prepare journal entries for March 2020 to record the following transactions. Assume a perpetual inventory system. Mar. 2 Purchased jeans from Paige Denim under the following terms: $4,200 invoice price, 2/15, n/68, FOB shipping point. 3 Paid $350 for shipping charges on the purchase of March 2. 4 Returned to Paige Denim unacceptable merchandise that had an invoice price of $400. 17 Sent a cheque to Paige Denim for the March 2 purchase, net of the returned merchandise and applicable discount. 18 Purchased jeans from ) Brand under the following terms: $9,600 invoice price, 2/10, n/30, FOB destination. 21 After brief negotiations, received from Brand a $2,100 allowance on the purchase of March 18 28 Sent a cheque to J Brand paying for the March 18 purchase, net of the discount and the allowance

Answers

In March 2020, journal entries transaction are made for purchases, returns, shipping charges, and allowances, while payments are recorded separately.

Mar. 2: Purchased jeans from Paige Denim for $4,200 (FOB shipping point). No journal entry required at this point.

Mar. 3: Paid $350 for shipping charges on the March 2 purchase. Journal entry: Debit "Inventory" for $350 and Credit "Cash" for $350.

Mar. 4: Returned unacceptable merchandise to Paige Denim, worth $400. Journal entry: Debit "Accounts Payable" for $400 and Credit "Inventory" for $400.

Mar. 17: Sent a cheque to Paige Denim, net of returned merchandise and applicable discount. No journal entry required at this point.

Mar. 18: Purchased jeans from J Brand for $9,600 (FOB destination). No journal entry required at this point.

Mar. 21: Received a $2,100 allowance from J Brand for the March 18 purchase. Journal entry: Debit "Accounts Payable" for $2,100 and Credit "Inventory" for $2,100.

Mar. 28: Sent a cheque to J Brand, net of discount and allowance. No journal entry required at this point.

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foundational 11-11 (static) 11. how many pounds of raw material are needed to make one unit of each of the two products?

Answers

The pounds of raw material per unit is computed as follows:

                                                                                                 Alpha                        Beta

Direct material cost per unit (a)                                                   $30                           $18

Cost per pound of direct materials (b)                                           $6                             $6

Pounds of direct materials per unit (a) ÷ (b)                                  5                               3

material is a substance or combination of substances that constitute an object. substances can be pure or impure, dwelling or non-living remember. substances may be categorized on the premise in their physical and chemical properties, or on their geological foundation or biological feature. materials technological know-how is the have a look at of substances, their properties and their packages. raw substances can be processed in extraordinary ways to influence their houses, by using purification, shaping or the advent of other materials. New substances may be produced from uncooked materials by means of synthesis. In industry, substances are inputs to manufacturing techniques to supply merchandise or greater complex substances.

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what budget philosophy eliminates the use of fiscal policy to stabilize the economy?

Answers

The budget philosophy that eliminates the use of fiscal policy to stabilize the economy is the non-interventionist or laissez-faire budget philosophy.

The non-interventionist budget philosophy is rooted in the belief that government intervention in the economy should be minimal, and that market forces should be allowed to operate freely without interference. This philosophy opposes the use of fiscal policy, which involves government spending and taxation measures, as a means to stabilize the economy.

Proponents of the non-interventionist approach argue that the market is self-regulating and will naturally correct any imbalances or fluctuations in the economy. They believe that government intervention through fiscal policy can create inefficiencies, distortions, and unintended consequences that hinder long-term economic growth. Instead, they advocate for limited government involvement, emphasizing free markets, individual freedom, and minimal regulation.

However, critics of this budget philosophy argue that relying solely on market forces can lead to economic instability and inequality. They contend that during economic downturns or recessions, fiscal policy measures such as increased government spending or tax cuts can stimulate demand, create jobs, and support economic recovery. They argue that a complete hands-off approach to fiscal policy may leave the economy vulnerable to prolonged recessions or inadequate responses to economic crises.

In summary, the non-interventionist or laissez-faire budget philosophy opposes the use of fiscal policy to stabilize the economy and advocates for minimal government involvement in economic affairs. While proponents believe in the self-correcting nature of markets, critics argue that judicious fiscal policy measures can play a role in addressing economic challenges and promoting stability.

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Which journal entry would be made by an accountant for a business for a $1,000 purchase of inventory on 1-August?
A. Inventory Cr 1,000
B. Inventory Dr 1,000
C. Cash Dr 1,000
D. Cash Cr 1,000

Answers

Journal entry would be made by an accountant for a business for a $1,000 purchase of inventory on 1-August Inventory Dr 1,000. Option B

What is a journal entry?

Generally, The act of maintaining or creating records of any transactions, whether economic or non-commercial in nature, is referred to as an entry in a journal.

An accounting journal is a record kept by an organization that details the transactions that have taken place and display the debit and credit balances. The entry in the journal may include multiple recordings, each of which may be either a debit or a credit depending on the circumstance.

Each entry in the journal provides information that is pertinent to a single transaction made by a company.

This information includes the date, the amount that will be credited and debited, a short description of the transaction, and the accounts that will be impacted.

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Fixed costs divided by weighted average contribution margin per unit equals 10) ______
A) contribution margin ratio. B) breakeven sales in dollars.
C) margin of safety ratio. D) breakeven sales in units.

Answers

D. Breakeven sales in units.The formula provided is used to calculate the breakeven point in units, which is the number of units a business needs to sell to cover all of its costs and expenses.

The fixed costs are divided by the weighted average contribution margin per unit to determine how many units need to be sold to cover those costs.

The contribution margin ratio is calculated by dividing the total contribution margin by the total sales revenue, expressed as a percentage.

The breakeven sales in dollars is calculated by dividing the fixed costs by the contribution margin ratio.

The margin of safety ratio is the difference between the actual or projected sales and the breakeven sales, expressed as a percentage of the actual or projected sales.

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jessica is looking to grow in her career as a personal trainer. which employment option would offer her the best chance to provide mentorship to fitness professionals, use managerial skills, and respond directly to member needs when necessary?

Answers

The position of fitness manager would give her the finest opportunity to mentor, managerial skills other fitness experts.

How can Karim market his background as a professional athlete the best?

Karim's professional athletic background enables him to develop a unique selling proposition (USP) that enables club members to work out with a former professional athlete.

Which stage of change sees the highest average levels of self-efficacy according to NASM?

Again, the students in the maintenance stage demonstrated the highest levels of self-efficacy in particular circumstances. Thankfully, pupils who had relapsed still scored higher than those who had moved on to the action and contemplation stages.

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Which of the following is NOT a type of mobile ad extension?
A) Sitelink extension
B) Download extension
C) Call extension
D) App extension

Answers

Option D) App extension is NOT a type of mobile ad extension is Correct. An app extension is a software component that allows an app to access certain features of the device, such as the device's storage or hardware.

App extensions are typically used to provide additional functionality to an app, such as the ability to access the camera or microphone. Mobile ad extensions, on the other hand, are additional pieces of information that can be added to a mobile ad to provide more context to the user and improve the chances of the ad being clicked.

Some common types of mobile ad extensions include:

Sitelink extension: allows the user to click on a link to a specific page within the app or website

Call extension: allows the user to click on a button to call the business directly

App extension: allows the user to download the app directly from the ad.

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economic development that meets the needs of the present without compromising the needs of future generations is called:_____.

Answers

Sustainable development is defined as economic growth that satisfies present needs without jeopardizing those of future generations.

What does economic sustainable development mean?

"Sustainable development," a method of economic planning, attempts to foster economic growth while preserving the environment's quality for future generations. Sustainable development techniques help a nation adapt its growth to the issues brought on by climate change, safeguarding essential natural resources for both the present and the future.

Give three reasons why sustainable development is important for the economy.

utilizing the resources at hand wisely and attempting to keep the ecological balance. 2.To prevent degradation of the environment and focusing emphasis on conserving the environment. 3. To stop the overuse of resources.

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Levels of agriculture? ​

Answers

Answer:

Helloooo

the steps are :-

Soil preparationmanuringirrigationweedingharvestingstoring

Explanation:

thanks hope it helps

This assignment consist on the development of an Education Plan for the HIM Department.

For the development of the Education Plan for the HIM Department follows these steps:

1. Prepare a survey form to collect the educational needs of the HIM employees.

2. Each student on the class will complete this survey form as if it were an employee of the HIM Department, who has identified a need issue in their work area.

3. Of the topics (educational needs) indicated in the survey form, each student will select one topic (educational need) of priority interest, this topic should be used in the development of the Partial Education Plan for the HIM Department in order to address this educational need.

This partial education plan should include the following content elements:

A. The Topic selected (explain why you select this educational need as a priority).

B. Two (2) Objectives for the topic.

C. One (1) Educational activity for the topic.

D. Scheduled date for the educational Activity

E. Duration of the educational activity

F. Resource to use in the educational activity

G. Participating group

H. Evaluation Instrument.

Answers

The plan should include the topic, objectives, educational activity, scheduled date, duration, resources, participating group, and evaluation instrument.

To develop an Education Plan for the HIM Department, the first step is to prepare a survey form to collect the educational needs of the HIM employees. Each student in the class will complete the survey form, assuming the role of an HIM employee who has identified a need in their work area. From the topics indicated in the survey form, each student will select one topic of priority interest.

The partial education plan should include the following content elements for the selected topic:

A. The topic should be explained, along with the reasons for selecting it as a priority educational need.

B. Two objectives for the topic should be identified, specifying what is intended to be achieved through the education.

C. One educational activity should be designed to address the selected topic.

D. A scheduled date should be set for the educational activity.

E. The duration of the educational activity should be determined.

F. The resources to be used in the educational activity should be identified.

G. The participating group should be defined, specifying the employees who will be involved.

H. An evaluation instrument should be developed to assess the effectiveness of the educational activity in meeting the identified educational need.

By following these steps and including the necessary content elements, a comprehensive Education Plan can be developed to address the educational needs of the HIM Department effectively.

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have seen ystuckey on brainly

Answers

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The Free enterprise system is:

A: Supply & Demand
B: Designed to protect consumers' best interests
C. Requires both sides of the story
D. Free of competition

Answers

Answer:

Free enterprise is the freedom of individuals and businesses to regulation. It enables individuals and businesses to create, produce, are able and willing, enterprising people produce goods and services for produce and sell goods and services. In this system, no one forces people they believe to be best for them.

a firm maximizes its profits when responses a price equals marginal revenue.price equals marginal revenue. b price equals marginal cost.price equals marginal cost. c total revenue equals total cost.total revenue equals total cost. d marginal cost equals total cost.

Answers

A firm maximizes its profits when the price equals the marginal cost. The correct answer is B.

Marginal cost is the additional cost incurred by producing one more unit of a good or service. Marginal revenue, on the other hand, is the additional revenue earned by selling one more unit of a good or service.

When a firm sets its price equal to its marginal cost, it ensures that it is not losing money on each unit produced and sold.

At the same time, it is also maximizing its profits by producing and selling the quantity of goods that generates the highest possible revenue.

This is because any additional unit sold beyond this point would cost more to produce than the revenue it would generate, resulting in lower profits.

Conversely, if a firm sets its price above the marginal cost, it may earn a higher profit per unit sold, but it may not sell as many units, resulting in lower overall revenue and profits.

On the other hand, if a firm sets its price below the marginal cost, it may sell more units, but it will not be covering all its costs, leading to a loss.

Hence,  B is the right answer.

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XYZ Enterprise allows a 2 percent discount on any invoice it sends out that is paid within 30 days. In the past, 20 percent of its invoices have been paid within 30 days. If it sends out 12 invoices on 31st March, and if the payment of these invoices is independent, calculate the probability that (a) All receive a discount. (b) The number receiving a discount is less than the expected number receiving a discount.

Answers

The probability that all 12 invoices receive a discount is approximately X%.

To calculate the probability, we can use the binomial distribution formula. Let's denote success as an invoice receiving a discount and failure as an invoice not receiving a discount. The probability of success (p) is 0.20 (since 20% of invoices are paid within 30 days), and the probability of failure (q) is 1 - p = 0.80.Using the binomial distribution formula: P(X = k) = C(n, k) * p^k * q^(n-k). where n is the total number of trials (12 invoices) and k is the number of successful trials (12 invoices receiving a discount), we can calculate the probability of all 12 invoices receiving a discount:

P(X = 12) = C(12, 12) * 0.20^12 * 0.80^(12-12). (b) The probability that the number of invoices receiving a discount is less than the expected number is approximately Y%.The expected number of invoices receiving a discount can be calculated by multiplying the total number of invoices (12) by the probability of success (0.20):Expected number = 12 * 0.20.To calculate the probability that the number of invoices receiving a discount is less than the expected number, we need to sum the probabilities of all possible outcomes from 0 to the expected number (exclusive).

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Is the statement “the first day on a job is always easy” true?

Answers

Im gonna slap the person who told you that, Answer:

Pffttt ofc not its always hard the first day.

Good Explanation:

Your first day on the job can be intimidating, anxiety-inducing, nerve-wracking, and hopefully, you do good you know cause its a pain in the ####. So Don't underestimate any job buddy,

The answer is false btw.

On January 1, the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720.

Answers

Complete Question:

On January 1, the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720

Journalize the first interest payment and the amortization of the related bond discount using the Straight line method

Answer:

Kindly check Explanation

Explanation:

Given the following :

Face value of bond issued = $1,450,000

Cash received on Issuance = $1,408,720

Number of Interest payment on bond = 5 × 2 = 10(semiannual)

Therefore, discount on bond :

$(1,450,000 - 1,408,720) = $41,280

Spreading or amortizing diacou t on bond over the bond duration (use te straight line method)

Discount / period

$41,280 / 10 = $4,128

Interest expense a/c Dr $40,378

To discount on bond payable a/c Cr $4128

To cash a/c $36,250

Jerry has just received an inheritance of $25,000, and he would like to use it to help him with his retirement. Because Jerry is 25 years old, he figures that the $25,000 can be invested for 40 years before he will need to use it for retirement. Jerry wants to know what interest rate would be necessary for the $25,000 to grow to provide an amount so that he can have a monthly income of $4,000 earned from simple interest only. Assume that Jerry is able to invest in real estate and can earn a 12% annual return on his investment.

Answers

Jerry would need an interest rate of approximately 4.25% for his $25,000 to grow to provide a monthly income of $4,000 earned from simple interest only over a 40-year period.

To determine the interest rate required for Jerry's $25,000 to grow and provide a monthly income of $4,000 earned from simple interest only, we can use the following steps:

1. Calculate the total amount needed for the desired monthly income:

  Monthly income = $4,000

  Annual income = Monthly income * 12 = $4,000 * 12 = $48,000

  Total amount needed = Annual income * Number of years = $48,000 * 40 = $1,920,000

2. Calculate the interest rate required for the initial $25,000 to grow to the total amount needed:

  Total amount needed = Initial amount * (1 + Interest rate)^Number of years

  $1,920,000 = $25,000 * (1 + Interest rate)^40

3. Solve for the interest rate:

  (1 + Interest rate)^40 = $1,920,000 / $25,000

  (1 + Interest rate)^40 = 76.8

  Take the 40th root of both sides: (1 + Interest rate) = (76.8)^(1/40)

  Interest rate = (76.8)^(1/40) - 1

Interest rate = 10.42%

Using a financial calculator or spreadsheet, we can calculate the interest rate to be approximately 4.25%.

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When agent Hal shows a home he should never:
Ask questions of the prospects' children.
Start in the room with the best features.
Allow indoor pets to leave their designated area.
Leave everything as it was when he entered.

Answers

When agent Hal shows a home he should never Allow indoor pets to leave their designated area. Option (c) is correct.

What do you mean by Prospects?

Prospectus is the likelihood or potentiality that something will occur.

A real estate agent who holds a license facilitates transactions between buyers and sellers and represents them in court. Agents typically receive payment in the form of commission, which is a percentage of the sale price of the home. Depending on their state and brokerage, agents receive a different percentage.

As a result, Option (c) is correct. When agent Hal shows a home he should never Allow indoor pets to leave their designated area.

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An individual has recently been fired from her job at a cellphone manufacturing plant. Her
job consisted of testing cellphone components for defects, but the job has become automated by
the company's purchase of industrial robots. She would like to find new work, but she will need to
undergo significant training before she has the skill set that employers are looking for. What type
of unemployment is this individual experiencing? (1 point)
cyclical unemployment
frictional unemployment
O structural unemployment
O natural unemployment
Next

An individual has recently been fired from her job at a cellphone manufacturing plant. Herjob consisted

Answers

Answer:

Structural  Unemployment

Explanation:

took  the  qc

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