refer to scenario 35-2. suppose that the flosserland department of finance has run a public relations campaign claiming it will reduce inflation to 12.5% but that it actually leaves inflation at 25%. suppose that the public had expected that the department of finance would reduce inflation, but only to 20%. then a. unemployment falls, but it would have fallen more if people had been expecting 12.5% inflation. b. unemployment rises, but it would have risen more if people had been expecting 12.5% inflation. c. unemployment rises, but it would have risen more if people had been expecting 22% inflation. d. unemployment falls, but it would have fallen more if people had been expecting 22% inflation.

Answers

Answer 1

The result of the public relations campaign by the Flosserland Department of Finance, would be that a. unemployment falls, but it would have fallen more if people had been expecting 12.5% inflation.

How does inflation affect unemployment ?

When there is a high rate of inflation in an economy, people will not buy as many goods and services which means that companies will not be as profitable and will produce less goods and services . As a result, there would be less need for employees and labor and so the unemployment rate would rise.

Now, if the Flosserland Department of Finance claimed that they reduced inflation, this means that people will be more tempted to buy goods and servcies thereby leading to a fall in unemployment. However, if the nation of Flosserland did not think inflation had dropped by much, their spending will be less and unemployment will fall by less.

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Related Questions

A portfolio is invested 45 percent each in stock a and stock b, and 10 percent in stock c. The expected t-bill rate is 3. 2 percent. What is the expected risk premium on the portfolio?.

Answers

A portfolio is invested 45 percent each in Stock A and Stock B and 10 percent in Stock C. The expected risk premium on the portfolio if the expected T-bill rate is 3.2 percent, the expected risk premium is 96.8 percent

How to determine risk premium on the portfolio?

The risk premium formula is very not difficult, one needs to subtract the expected return on a given asset from the risk-free rate, which is quite the current interest rate paid on risk-free investments, like government bonds and Treasuries.

In order to calculate the risk premium, it is

Ra - Rf

expected risk premium = Ra - Rf

= 100 - 3.2

= 96.8%

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a manufacturer has decided to outsource and offshore a small electric motor that it currently manufactures itself. it has found an offshore supplier that charges $925,000 for a minimum order quantity of 5,000 motors. shipping costs for this quantity are $15,000. the buyer expects to place four orders per year to meet its annual need for 20,000 motors. annual carrying cost is 25% of unit price and import tariffs are 12% of unit price. the company expects to spend $12,500 per year on contracting and relationship maintenance. using an order quantity of 5,000 motors, what is the total annual cost of outsourcing and offshoring each motor? (round your answer to the nearest cent.)

Answers

The total annual cost of outsourcing and offshoring each motor is $257.08.

How is the total annual cost determined?

The total annual cost is the sum of the following cost elements:

Purchase costsShipping costsAnnual carrying costsImport tariffsContracting and relationship costs.

The yearly total cost per unit (average total cost) is the quotient of the total annual cost divided by the total yearly demand units.

Total cost for 5,000 motors = $925,000

Unit cost per motor = $185 ($925,000/5,000)

Number of orders per annum = 4

Total annual demand = 20,000 units

Purchase cost for 20,000 motors = $3,700,000 ($185 x 20,000)

Shipping costs for 20,000 motors =       60,000 ($15,000 x 4)

Annual carrying costs =                         925,000 ($3,700,000 x 25%)

Import tariffs =                                        444,000 ($3,700,000 x 12%)

Contracting and relationship costs         12,500

Total annual cost of outsourcing =   $5,141,500

The total annual cost per unit = $257.08 ($5,141,500 ÷ 20,000)

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what minimal areas of knowledge should a project professional have about a culture, before being assigned to work in another country?

Answers

Holidays-national and religious, business protocols, and family life is the minimal areas of knowledge should a project professional have about a culture, before being assigned to work in another country.

Traveling to a foreign country is perhaps of life's greatest honor. As humans, we are adequately fortunate to have the ability to cross boundaries and experience various societies for very little time and cash.

To foster a more receptive and mature feeling of the world and its billions of individuals, traveling is essential.

Whether you are simply visiting a foreign land or participating in a work exchange where you get to reside and work in a particular area, cultural contrasts can have an enormous effect on your time there.

It very well may be seemingly insignificant details, similar to what time supper is served or what is eaten for breakfast.

It could also be large things, similar to how ladies are treated or how truly religion is taken.

It's important to be expectant of cultural differences beforehand, so you don't encounter outrageous culture shock when you arrive at your destination.

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jian mei argues that philosophy led to the economic development in many of east asia's newly industrializing economies. she is likely referring to

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She is likely referring to the role of Confucianism in encouraging obedience, loyalty, and thrift.

Confucianism is an ancient Chinese belief system that focuses on the importance of personal ethics and morality. Whether it is just philosophy or religion is being debated.

The concepts of autonomy, charity, harmlessness, respect for justice, and the moral values ​​of these four prima facie principles of his, were clearly identified in Confucius' ethics.

In fact, Confucianism was built on ancient religious foundations to establish the social values, institutions, and transcendental ideals of traditional Chinese society. Confucianism is characterized as system of social and the ethical philosophy rather than a religion.

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a company reported cost of goods sold of $1,240,200 for the year. during the year, inventory increased from a $270,000 beginning balance to a $324,000 ending balance, and accounts payable increased from a $84,600 beginning balance to a $99,000 ending balance. how much cash was paid for merchandise purchased during the year?

Answers

The Cash Paid for Merchandise Purchased is$1,141,200.

Calculate the Cost of Goods Available for Sale

Cost of Goods Available for Sale = Beginning Inventory + Purchases = $270,000 + X

Calculate the Ending Inventory

Ending Inventory = Beginning Inventory + Purchases - Cost of Goods Sold = $270,000 + X - $1,240,200

Calculate the Purchases

Purchases = Ending Inventory + Cost of Goods Sold - Beginning Inventory = $324,000 + $1,240,200 - $270,000

Calculate the Cash Paid for Merchandise Purchased

Cash Paid for Merchandise Purchased = Purchases - Accounts Payable = X - $99,000

Cash Paid for Merchandise Purchased = $1,141,200

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your portfolio is comprised of 22 percent of stock x, 32 percent of stock y, and 46 percent of stock z. stock x has a beta of 1.04, stock y has a beta of .96, and stock z has a beta of 1.24. what is the beta of your portfolio?

Answers

Your portfolio comprises 22 percent of Stock X, 32 percent of Stock Y, and 46 percent of Stock Z. Stock X has a beta of 1.04, Stock Y has a beta of.96, and Stock Z has a beta of 1.24. 1.106, is the beta of your portfolio. Thus, option (e) is correct.

The weighted beta of each individual stock in the portfolio must be determined in order to compute the portfolio's overall beta.

Given that the portfolio consists of stocks with betas of 1.04 for Stock X, 0.96 for Stock Y, and 1.24 for Stock Z, we can get the portfolio beta as follows:

Portfolio beta = (0.22 × 1.04) + (0.32 × 0.96) + (0.46 × 1.24)

Portfolio beta = 0.2288 + 0.3072 + 0.5696

Portfolio beta = 1.1056

As a result, the significance of the 1.106, is the beta of your portfolio are the aforementioned. Therefore, option (e) is correct.

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Your question is incomplete, but most probably the full question was.

Your portfolio comprises 22 percent of Stock X, 32 percent of Stock Y, and 46 percent of Stock Z. Stock X has a beta of 1.04, Stock Y has a beta of.96, and Stock Z has a beta of 1.24. What is the beta of your portfolio?

Multiple Choice

1.163

1.092

1.127

1.178

1.106

when the federal reserve board slashed interest rates and committed trillions of dollars to prevent the failure of major financial institutions, this was known as the .

Answers

The Fed has maintained interest rates low over the last decade while deploying billions of dollars in stimulus and expanding its regulatory control.

The Federal Reserve is America's most powerful economic organization. It is in charge of monetary policy and financial system regulation.

It accomplishes this through controlling interest rates, affecting the quantity of money in the economy, and, in recent years, purchasing trillions of dollars in assets to support financial markets.

The COVID-19 epidemic and the fallout from Russia's invasion of Ukraine have caused worrying inflation, prompting the Fed to boost interest rates dramatically in 2022.

How has the Fed’s regulatory role evolved:

Throughout the 1990s, the Fed's regulatory authority grew steadily. After a 1999 law permitted the merging of securities, insurance, and banking organizations, and enabled banks to mix retail and investment activities, the banking business in the United States transformed substantially. The Glass-Steagall Act of 1933 had previously divided these two roles. The revisions also made the Fed responsible for guaranteeing the stability of banks by implementing regulations such as minimum capital requirements, consumer protections, antitrust laws, and anti-money laundering policies.

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all corrections for posting errors should be made in a way that leaves no question as to the correct amount.
A. True
B. false

Answers

This statement is True because All adjustments for posting mistakes must be performed in a way that makes it clear what the proper amount is every time.

Is money a number or amount?

Money and time are two categories of items that may be used in a variety of ways. One may speak of a sum of money, a collection of dollar notes, or a span of time, a collection of hours: The dollar notes in the jar have reduced, as well as the overall amount of currency in the jar.

Exactly what is value for money?

The practical, efficient, and economical use of resources is what is meant by value for money. To achieve this, relevant expenses and advantages must be evaluated, along with risks, non-price features, and/or total price of ownership as necessary.

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janice is in the market for a new smartphone when she sees an ad online touting the new features of the latest samsung model. she had not thought about buying a samsung and doesn’t know how much it costs, but the ad made her want to research this type of smartphone further. what feature of advertising does her response exemplify?

Answers

Janice's response exemplifies the impersonality feature of advertising because she wants to learn more about the Samsung model she saw in an online ad.

Advertising is any form of paid promotional activity carried out by an individual or organization to inform the target market about a product or service or to compel them to take certain actions, particularly by an identified sponsor.

Advertising is a form of paid persuasive communication. Advertising plays an important role in the success of marketing campaigns and the achievement of a company's marketing goals. Advertising is a mass communication medium because it attempts to reach a large number of people at once. It aims to provide adequate information to the target market or readers, listeners, and viewers about the various aspects of the business and its products and services features, as well as other related matters.

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a(n) is the best level of quality achievement in one company that others seek to match or exceed. group of answer choices target value benchmark attribute variable

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is the highest quality achievement possible in one organisation, which other businesses try to duplicate or surpass.

What does a benchmark mean?

Benchmark, also spelled benchmark, is a term used to describe something that acts as a yardstick or benchmark for comparison. a stock which performance serves as a baseline for comparing the performance of other stocks: a point of comparison.

What makes it a benchmark?

The term "benchmark," "bench mark," or "survey benchmark" refers to the lateral marks that surveyors chiselled into stone buildings so that an angle-iron could be inserted to create a "bench" for a levelling rod. This allowed levelling rods to be precisely re - positioned in the same location in the future.

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in comparing bonds with notes, bonds are typically issued to a single lender while notes are issued to many lenders.a. trueb. false

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In comparing bonds with notes, bonds are typically issued to a single lender while notes are issued to many lenders, this statement is false.

What do bonds and notes mean?

Debt comes in the form of both bonds and notes. In both scenarios, a business takes money from another party and is required to repay it over time along with interest. Depending on the bond or note due, the precise mechanism utilized to determine when and how much principle and interest is returned might differ significantly.

What distinguishes bonds from notes?

Securities regulations are primarily responsible for the distinction between bonds and notes payable. Unlike notes payable, which are not always regarded as securities, bonds are always regarded as securities and are governed as such. For instance, the Securities Act expressly excludes short-term notes, commercial paper, and mortgage notes from the definition of securities.

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what supports general business processes and does not require any specific software customization to meet the organization’s needs?

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Off-the-shelf application software supports general business processes and does not require any specific software customization to meet the organization’s needs.

Any software solution that was created for the general market and is often commercial is referred to as being "off-the-shelf." It is a ready-made item that you are free to purchase, but it wasn't developed with your requirements in mind.

Many of the software programmes you use on a daily basis may be categorized as "off-the-shelf." Because you buy them, or in the case of iTunes, download them for free, and use them in the same manner that everyone else does, Office 365, Salesforce, and iTunes are all regarded as off-the-shelf products.

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tahlia is interested in exporting. she is accompanying representatives of the u.s. department of commerce to london where she will meet with qualified agents, distributors, and customers to help her make contacts and explore export opportunities in london. tahlia is participating in

Answers

It seems that Tahlia is participating in a "matchmaker" program organized by the U.S. Department of Commerce, based on the information provided.

This program connects U.S. businesses with potential agents, distributors, and customers in foreign markets to help them explore export opportunities and make connections that can support their international expansion. While the "best prospects" search, the SCORE program, and import-export expos may also be related to international trade and exporting, they are not specifically mentioned in the given information, so it is unclear if Tahlia is participating in these programs as well.

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when alison dies, the assets will be considered part of her estate. what kind of trust did alison most likely create?

Answers

Revocable living trust was established by Alison. In this kind of trust, Alison has the authority to modify the trust's provisions and to dissolve it altogether.

How Do Trusts Work?

Similar to a person or company, a trust is a legal entity with unique rights that are separate from one another. A party known as a trustor grants another party, the trustee, the authority to hold title to and administer assets for the benefit of a third party, the beneficiary, through the creation of a trust.

Which kind of trust is built while we're alive and which kind is built after we pass away?

An intervolves trust is one that is established while the beneficiary is still living, whereas a trust that is established after the beneficiary has passed away is a testamentary trust.

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What is real account and nominal account?

Answers

Real accounts begin the next fiscal year with their ending balances, as opposed to nominal accounts, which begin with zero balances. Real accounts are also known as permanent accounts, whereas nominal accounts are also known as temporary accounts.

The accounts listed on the income statement are known as nominal accounts. These accounts show income and expenses. Service income, sales revenue, salary expense, utility expense, supply expense, and interest expense are a few examples of temporary accounts. Actual accounts are contained in the balance sheet. Real accounts represent the assets, liabilities, shareholder equity, and capital. Among other things, real accounts include assets including cash, machinery, loans, banks, investments, real estate, and equity. Gains, losses, and expenses are tied to and associated with nominal accounts. Examples include a purchase account, sales account, salary account, commission account, etc. A nominal account produces profit or loss, which is then transferred to the capital account.

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Answer: Real accounts are the cumulative balance over time accounts. While Nominal accounts are accounts only affected within a period.

Explanation:

which of the following statements about stock options is true? multiple choice question. companies save money by offering stock options, but employees always lose money with stock options. the recipient has the right to set the price of the stock. the recipient is given the right to purchase stock at a predetermined price sometime in the future. if the recipient agrees to stock options as part of a compensation package, the recipient is obligated to buy stock in the future.

Answers

It is true that stock grants the recipient the right to buy shares at a specified price in the future.

Which of the following sums up a choice the best?

It is the paid-for right—but not the duty—to purchase or sell a particular number of shares of stock at a particular price and for a particular amount of time.

How do options impact the price of stocks?

It is more likely for the price of a call option to increase and the price of a put option to decrease as the price of a stock increases. The price of calls and puts will generally decrease if the stock price decreases, and vice versa.

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question content areawhen no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds. true false

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Area when no-par not unusual common stock with a said cost is issued for coins, the not unusualplace inventory account is credited for an quantity identical to the coins proceeds.  false.

Common stock is a shape of company fairness ownership, a kind of security. The phrases vote casting proportion and regular proportion also are used often outdoor of the United States. They are referred to as fairness stocks or regular stocks withinside the UK and different Commonwealth realms. Common stock is a shape of companyfairnessownership, a kind ofsecurity. The phrasesvote casting proportionandregular proportionalso are used often outdoor of theUnited States.

The proprietors of  Common stock not do now no longer very own any precise belongings of the company, which belong to all of the shareholders in not unusualplace. A agency might also additionally problem each regular and choice stocks, wherein case the choice shareholders have precedence to acquire dividends. In the occasion of liquidation, regular shareholders acquire any ultimate price range after bondholders, creditors (such as employees), and choice shareholders are paid. When the liquidation occurs through bankruptcy, the regular shareholders normally acquire nothing.

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a homeowner would like to operate a business in the home, but is in an area zoned for residential use only. what should the homeowner do?

Answers

The homeowner Seek a conditional use permit from the zoning board.

What is Conditional use permit?

A zoning exemption known as a conditional use permit enables you to utilize your property in ways that are not permitted. It can serve as an alternative to rezoning requests and enable you to utilize your property in a distinctive manner in cases when rezoning is not an option.

Make sure you satisfy the requirements in the county where you own property before submitting an application for a CUP. For instance, Los Angeles County mandates conformity with the neighborhood's master plan. Additionally, if available, they evaluate for suitability, adequate access, and public services.

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true or false: in a localization strategy, decision-making is centralized at headquarters because firms are not pressured for local responsiveness. true false question. true false

Answers

A false assertion in a localization plan is that decision-making is centralized at the corporate level since businesses are not under any pressure to be responsive locally.

What kind of decision is normally made centrally at the headquarters of a company?

The headquarters of the company often serve as the focal point for decisions about the entire business strategy, significant financial commitments, financial goals, and legal matters. Senior managers make the majority of decisions in a centralized decision-making environment.

Centralized decision-making – what is it?

The term "centralization" refers to a situation in which a select few people at the top of the organizational structure hold the power to make decisions.

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The digby company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. employee training costs $20 per hour. how much would their training costs per employee be to the nearest dollar?

Answers

The total training cost per employee in nearest dollar is $1000 if the training cost of an employee per hour is $20.

Data provided by Digby company

Number of training hours = 50

Cost of training per hour = $20

To find the total cost of training, we should multiply the number of training hours with the cost of training per hour.

According to given situation, the calculation of the cost of training per employee is given by

Total cost of training for an employee = Number of training hours × Cost of training per hour

= 50 × $20

= $1000

The given question is incomplete, the complete question is:

"The digby company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. employee training costs $20 per hour. how much would their training costs per employee be to the nearest dollar if the number of training hours is 50?"

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which statement concerning the net present value (npv) of an investment or a financing project is correct?

Answers

If the net present value ( NPV ) is positive, any project should be approved; if it is negative, it should be denied.

Net present value (NPV) is the difference between the current value of cash inflows and cash outflows over time. Net present value is used in capital budgeting and investing.

Net present value (NPV), which takes into account time value of money, can be utilized when comparing the rates of return of various projects or comparing a predicted rate of return with the hurdle rate required to accept an investment.

A project's hurdle rate could be the discount rate, which is based on a company's cost of capital and represents the time value of money in the net present value formula. Regardless of how the discount rate is calculated, a project with a negative net present value will not add value because the expected rate of return will be lower than it.

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henry ford is credited with revolutionizing industrial manufacturing with the introduction of —

Answers

Henry ford is credited with revolutionizing industrial manufacturing with the introduction of moving assembly line.

What role did Henry Ford have in the Industrial Revolution?

Ford transformed the factory environment by inventing the assembly-line system, which greatly increased production efficiency. Instead of workers traveling about the factory to work on the pieces, the factory was designed so that workers remained stationary as the car proceeded down an assembly line. While he did not invent the automobile, he did pioneer a new method of producing a huge number of automobiles. The moving assembly line was a method of production. The conveyer belt was the most typical characteristic of this assembly line. Other sectors, including slaughterhouses, were using the belts. By perceiving common laborers as consumers, Henry Ford transformed manufacturing. This fostered mass production, which made things like automobiles more inexpensive.

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Answer:

moving assembly line :)

Explanation:

the major disadvantage of a sole proprietorship is the fact that the owner of the establishment has:

Answers

Liability: One of the main drawbacks of being a sole proprietor is that you will be personally responsible for all business obligations.

Liability: One of the main drawbacks of being a sole proprietor is that you will be personally responsible for all business obligations. There is no separation between the owner's and the business's assets.

If the assets of the business are insufficient to cover the debts of the business, personal liability permits creditors of the business to pursue your personal assets. In a similar vein, in order to pay off your personal debts, your creditors have the right to seize your company's assets.

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Which trait of a leader helps prevent jumping to conclusions and making mistakes based on misinformation?

Answers

Creativity trait of a leader helps prevent jumping to conclusions and making mistakes based on misinformation.

What is misinformation?

Inaccurate or deceptive information is called misinformation. [1] It is distinct from misinformation, which is wilfully false. Rumors are inaccurate and frequently unverified information that cannot be ascribed to a specific source, and they can be either true or untrue. Even if later denied, false information can nevertheless affect how people respond and remember. Due to their emotional ties to what they are reading or listening to, people may be more likely to believe false information. Social media's function has made information easily accessible to us at all times and has allowed for the simultaneous connection of huge groups of people and their information. Technology advancements have had an impact on how we convey information and how false information is spread.

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if the natural rate of unemployment is 4.7 percent and the actual rate of unemployment is 5.5 percent, then by definition there is a. cyclical unemployment amounting to 0.8 percent of the labor force. b. frictional unemployment amounting to 0.8 percent of the labor force. c. structural unemployment amounting to 0.8 percent of the labor force. d. search unemployment amounting to 0.8 percent of the labor force.

Answers

According to the definition, cyclical unemployment amounting to 0.8 percent of the labor force. Thus, option A is correct.

What is cyclical unemployment?

Cyclical unemployment is the component of total unemployment caused directly by economic ups and downs. Typically, unemployment rises during recessions and falls during economic booms.

The natural unemployment rate is 4.7 percent and the actual unemployment rate is 5.5 percent, Thus, Cyclical unemployment  is computed by using the following formula:-

Cyclical unemployment = actual rate of unemployment - natural rate of      unemployment        

= 5.5 - 4.7

= 0.8

Therefore, it can be concluded that 0.8 percent of the work force is unemployed due to cyclical factors. Hence, option A is correct.

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An advantage of franchising, from the franchisors point of view, is that franchising helps a venture grow because the franchisees provide the majority of the capital.
a. True
b. False

Answers

Answer:t

Explanation:

Which three countries are among the leaders in world trade for manufactured products and commodities?
a. Mexico
b. United States
c. China
d. Japan
e. India

Answers

The three countries that are leaders in world trade are the United States, China and Japan

The United States, China, and Japan are the world's largest economies and are major players in global trade. These countries are known for their production and export of various manufactured products including consumer goods, industrial equipment, and raw materials. The United States is known for its advanced manufacturing sector and its ability to produce a range of high-quality goods, including automobiles, electronics, and machinery. The United States is also a major producer and exporter of agricultural products, as well as energy resources, like oil and natural gas.

China is the world's second-largest economy and is known for its extensive manufacturing industry, producing textiles, clothing, electronics, and machinery. China is also a major exporter of raw materials, like coal, and iron ore, and is a leading producer of agricultural products.

Japan is the world's third-largest economy and a major global trade power. It is known for its advanced manufacturing industry, producing automobiles, electronics, and machinery. Japan is also a major exporter of raw materials, like oil and natural gas, and it is a leading producer of rice and seafood.

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What type of bank account that money that you put in the bank and do not spend except for emergencies?

Answers

Savings accounts can be used to save money that you want to set up for the future, for unexpected expenses, or to pay for expensive items like a new car or a vacation. Your money will earn interest in a savings account.

A savings bank account is a type of deposit account that can be held by a bank, building society, or other financial institution. You can make one-time or monthly deposits into your savings account, and you will earn interest on the remaining balance. There are several types of accounts, and some have limitations on deposits and withdrawals. You can open a savings account and deposit funds into it at a bank or credit union. The bank will then add interest to your balance. You can continue to add money to your savings using one or more of the following strategies, depending on the bank: ATM check or cash deposits.

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employers who provide health insurance to their employees must ensure that the employees’ health information is not disclosed to unauthorized parties.

Answers

Employers who offer health insurance to their workers are required to take precautions to prevent the disclosure of the workers' health information to unauthorized parties. is a true assertion.

What is the insurance?

A risk management tool is insurance. When you buy insurance, you get protection against unanticipated financial losses. If something unfavorable occurs, the insurance provider compensates you or a different person of your choosing. If there is an accident and you don't have insurance, you could be responsible for all costs.

An employee must be paid by their employer and subject to payroll taxes in order to be eligible for group health insurance. Independent contractors, retirees, and seasonal or temporary workers are among those who are typically ineligible for group insurance.

Therefore, Employers who offer health insurance to their workers are required to take precautions

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bates company plans to add a new item to its line of consumer product offerings. two possible products are under consideration. each unit of product a costs $6 to produce and has a contribution margin of $3, while each unit of product b costs $12 and has a contribution margin of $4. what is the differential revenue for this decision? multiple choice $7 $1 $6 $9

Answers

The differential Revenue for the aforementioned company's decision would be $7. Option A is correct.

What is the differential Revenue?

The difference in sales generated by two distinct courses of action is referred to as differential revenue. The notion is widely utilized while deciding between two (or more) company ventures.

Computation of Differential Revenue:

Deal = Cost + Contribution Margin, then

Selling cost of Product A = $6+ $3= $9

Selling cost of Product B = $12+ $4 = $16

Then, the Differential Revenue would be calculated as:

Differential Revenue = Selling cost of item B – Selling cost of Product A

Differential Revenue = $16 – $9

Differential Revenue = $7

Therefore, the differential revenue for the decision of the given company would be $7. Option A is correct.

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