g Other things equal, an improvement in the expected rate of net profit would Multiple Choice reduce the price level and unemployment. decrease the interest rate and cause aggregate demand to increase. increase consumption and net exports, causing aggregate demand to shift rightward. increase investment spending, real GDP, and the price level.

Answers

Answer 1

Answer:

Other things equal, an improvement in the expected rate of net profit would

increase investment spending, real GDP, and the price level.

Explanation:

When the net profit or income improves, the ability of entities to increase their investment spending is enhanced dramatically.  The cascading effect improves the real GDP as more investments are made to take advantage of the increased profit rate.  Overall, the price level will also increase with increased aggregate demand, coupled with improved investment, employment rate, and improvements in other market indices.

Answer 2

GDP is the Gross Domestic Product is the measurement tool of the market or the economy. It is for all the final goods and services being provided to the final consumer of the goods or services.

When other things are equal then if there is an improvement in the expected rate of net profit then it would also increase the investment spending, the real GDP, and the price level.

Due to the increase in the net profit or the net income of the business, then the ability of the entity towards its investment spending is also enhanced. This is the cascading effect that will also impact the improvement in the real GDP, this is because more investments are made by the entity to take advantage of the increased profit margin rate. This will substantially increase the price level of the goods or services.

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Related Questions

A company is considering replacing an old piece of machinery, which cost $601,300 and has $350,900 of accumulated depreciation to date, with a new machine that has a purchase price of $483,600. The old machine could be sold for $64,500. The annual variable production costs associated with the old machine are estimated to be $156,700 per year for 8 years. The annual variable production costs for the new machine are estimated to be $101,400 per year for 8 years.
Required:
A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
B. Determine whether the company should continue with (Alternative 1) or replace (Alternative 2) the old machine.
C. What is the sunk cost in this situation?
X
Differential Analysis
A company is considering replacing an old piece of machinery, which cost $600,000 and has $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $545,000. The old machine could be sold for $231,000. The annual variable production costs associated with the old machine are estimated to be $61,000 per year for eight years. The annual variable production costs for the new machine re estimated to be $19,000 per year for eight years.
Required:
A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
B. Determine whether the company should continue with (Alternative 1) or replace (Alternative 2) the old machine.
C. What is the sunk cost in this situation?
X
Differential Analysis
A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
Differential Analysis
Continue with Old Machine (Alternative. 1) or Replace Old Machine (Alternative. 2)
September 13
1
Continue with Old Machine
Replace Old Machine
Differential Effect on Income
2
(Alternative 1)
(Alternative 2)
(Alternative 2)
3
4
5
6
7
8

Answers

Answer:

Question Aa. Alternative 1–$1,253,600

Alternative 2 –$1,230,300

Differential effect $ 23,300

b.The company should replace the old machine.

c Sunk cost $250,400

Question Ba. Alternative 1–$488,000

Alternative 2 –$466,000

Differential effect $ 22,000

b.The company should replace the old machine.

c Sunk cost $250,000

Explanation:

Question Aa. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $64,500 $64,500

Costs:

Purchase price 0 –$483,600 –$483,600

Variable production costs (8 years)–$1,253,600 –$811,200 $442,400

($156,700*8=$1,253,600)

($101,400*8=$811,200)

Income (Loss) –$1,253,600 –$1,230,300 $ 23,300

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formula

Sunk cost=$601,300-$350,900

Sunk cost=$250,400

Question Ba. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $231,000 $231,000

Costs:

Purchase price 0 –$545,000 –$545,000

Variable production costs (8 years)–$488,000 –$152,000 $336,000

($61,000*8=$488,000)

($19,000*8=$152,000)

Income (Loss) –$488,000 –$466,000 $ 22,000

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formua

Sunk cost=$600,000-$350,000

Sunk cost=$250,000

Prompt What is market information?

Answers

Market information refers to data, facts, and insights related to a particular market or industry, which can be used to analyze and understand market dynamics, trends, and opportunities.

What is market?

Market includes information about market size, market share, customer preferences, competitor analysis, pricing trends, demand and supply dynamics, regulatory changes, technological advancements, consumer behavior, and other relevant factors that impact the performance and competitiveness of a market. Market information is essential for businesses, policymakers, investors, and other stakeholders to make informed decisions, develop marketing strategies, identify business opportunities, assess risks, and stay competitive in the marketplace. It is typically gathered through market research, data analysis, market reports, surveys, and other sources, and it plays a crucial role in shaping business strategies and market outcomes.

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A company started the year with the following: Assets $104,000; Liabilities $34,000; Common Stock $64,000; Retained Earnings $6,000. During the year, the company earned revenue of $5,400, all of which was received in cash, and incurred expenses of $3,200, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,400 to owners. Assume no other activities occurred during the year. What was the amount of net income for the year?
a. $3,200.
b. $2,200.
c. $1,400.
d. $5,400.

Answers

Answer:

b. $2,200.

Explanation:

Net income = Revenue - Expenses

Net income = $5,400 - $3,200

Net income = $2,200

Therefore, the amount of net income for the year is $2,200

FIFO Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for: ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
1-a. Prepare a schedule of equivalent units.
1-b.Compute the unit cost for the month of December.

Answers

Question Completion:

Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.

Answer:

Fordman Company

1-a. A Schedule of Equivalent Units:

                                             Direct materials  Conversion  Transferred in

Beginning work in process     2,400 (60%)       2,400 (60%)     2,400 (60%)

Units transferred out             16,000 (100%)    16,000 (100%)  16,000 (100%)

Ending work in process          4,000 (50%)       4,000 (50%)     4,000 (50%)

Equivalent units                    22,400               22,400              22,400

1-b. Cost per unit for the month of December = $5.45

Explanation:

a) Data and Calculations:

Beginning work in process:

Direct materials costs = $5,000

Conversion costs = $6,000

Transferred-in costs = $8,000

Units transferred from the Grinding Department = 20,000

                                              Direct materials  Conversion  Transferred in

Cost added during the month   $32,000         $50,000         $40,000

Equivalent units of production:

                                             Direct materials  Conversion  Transferred in

Beginning work in process     2,400 (60%)       2,400 (60%)     2,400 (60%)

Units transferred out             16,000 (100%)    16,000 (100%)  16,000 (100%)

Ending work in process          4,000 (50%)       4,000 (50%)     4,000 (50%)

Equivalent units                    22,400               22,400              22,400

Cost per equivalent unit:

                                             Direct materials  Conversion  Transferred in

Cost added during the month   $32,000         $50,000         $40,000

Equivalent units                            22,400           22,400           22,400

Cost per equivalent unit             $1.43                $2.23             $1.79

Cost per unit for the month of December = $5.45 ($1.43 + $2.23 + $1.79)

Physical Flow Schedule for December:

Units to account for:

Units, beginning work in process 4,000 (40% complete) 60% in the month

Units started                                20,000

Total units to account for:           24,000

Units accounted for:

Units, ending work in process     8,000 (50% complete)

Units completed                          16,000

Units accounted for                   24,000

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 383,000 debit Allowance for uncollectible accounts 580 credit Net Sales 880,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.5% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared

Answers

Answer:

$4,400

Explanation:

The computation of the bad expense amount debited is shown below:

Since in the question it is mentioned that the company estimated 0.5% of net credit sales that are considered to be uncollectible

So,

The amount of bad debt expense debited is

= $880,000 × 0.5%

= $4,400

Hence, the amount is $4,400 that should be debited to bad debt expense

The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 30%. Currently, sales are $830,000 per year and cost of sales are 65% of sales. The equipment is expected to last for 4 years with no residual value. The cash outflow expected at the beginning of the year is $289,200. Ignoring income taxes, what is the estimated annual net operating income increase/decrease

Answers

Answer:

Annual net operating income=  $14,850

Explanation:

The annual net operating income is the incremental sales less costs of good sold and annual depreciation.

Annual depreciation = (Cost of equipment - Salvage value)Number of years

                 = (289,200-0)/4 = 72,300

Increase in sales= $249,000

Annual net operating income = 249,000- (65%×249,000)-72,300=301,200

Annual net operating income= $14,850

Perfectly competitive, unregulated markets with no externalities will provide the efficient level of Group of answer choices private goods. private goods, artificially scarce goods, and common property resources. private goods and artificially scarce goods. private goods, artificially scarce goods, common property resources, and public goods. canva

Answers

Answer: private goods

Explanation:

Private goods are referred to as the goods that are excludable and also possess the characteristics of rivalry. Such goods can only be consumed when people pay for them and those who don't pay will noy benefit from the goods.

The demand and supply of private goods will bring about an efficient level of output such that the demand will be equal to the supply. It should be noted that other goods may be faced with challenges like the externality problem, free rider problem etc.

Data for 2021 were as follows: PBO, January 1, $246,000 and December 31, $276,000; pension plan assets (fair value) January 1, $190,000, and December 31, $239,000. The projected benefit obligation was underfunded at the end of 2021 by:

Answers

Answer: $37000

Explanation:

The projected benefit obligation was underfunded at the end of 2021 by:

PBO December 31 = $276,000

Less: Pension plan assets (fair value) December 31 = $239,000.

Then, the projected benefit obligation was underfunded at the end of 2021 by ($276000 - $239000) = $37000

1. The amount of income that would result from an alternative use of cash is called opportunity cost.
A. True
B. False
2. When a segment of a company is showing a net loss, it is always best to discontinue the segment in order not to continue with losses.
A. True
B. False

Answers

Answer: 1. True

2. False

Explanation:

1. Opportunity cost simply means the cost of what we've to forgo for something else. It's the amount of income which would be gotten when we use cash in an alternative way. Therefore, the answer is true.

2. A net loss occurs when the expenses are more than the income for a given period of time. Rather than discontinuing, it's required for a disclose to be made based on the rules, Therefore, the correct answer is false.

Which statements describe options for exporting query data? Select all that apply.
Copy a database object and paste it into a new program.
Save the entire database as a spreadsheet.
Save a single database object in a new file type, such as .csv.
Copy the entire database and paste it into a new program.
DONE

Answers

Answer:

1)Copy a database object and paste it into a new program

3) Save a single database object in a new file type, such as .csv

Explanation:

The I-75 Carpet discount store has annual demand of 85,700 yards for Super Resistant carpet. The annual carrying cost for a yard of this carpet is $2.25 per yard and the ordering cost is $350. The store is open 52 weeks per year. Assume that the expected value of daily demand is 200, that the standard deviation for daily demand is 4 and that the lead time to fill an order is 11 days. Assume that the EOQ is 5164 yards. What would be the reorder point for a 95% service level?

Answers

Answer:

2,421.89

Explanation:

Reorder point = Daily demand*Lead time + Z*STANDARD DEVIATION *√(Lead time)

Reorder point = 300*8 + 1.65*4*√11

Reorder point = 2,400 + 21.8897

Reorder point = 2,421.8897

Reorder point = 2,421.89

So, the reorder point for a 95% service level is 2,421.89.

Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: How much will Bidder B have to spend to purchase all of the shares that have been allocated to him

Answers

Answer:

$4,320.00

Explanation:

Calculation to determine How much will Bidder B have to spend to purchase all of the shares that have been allocated to him

Bidder B Cost = 300 *[900/(100 + 300 + 400+200)] *$16

Bidder B Cost = 300*[900/1,000)*$16

Bidder B Cost = 300*0.9*$16

Bidder B Cost = $4,320.00

Therefore The amount that Bidder B will have to spend to purchase all of the shares that have been allocated to him is $4,320.00

Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 4,400 5,100 4,960 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,100 units. The budgeted production units for July are:

Answers

Answer:

the budgeted production units for July are 4,575 units

Explanation:

The computation of the budgeted production units for July are shown below:

= July units + ending units - beginning untits

= 4,400 units + (5,100 × 25%) - 1,100 units

= 4,400 units + 1,275 units - 1,100 units

= 4,575 units

Hence, the budgeted production units for July are 4,575 units

Hence, the same would be considered and relevant

Question 5
Discuss the advantages and disadvantages of holding too little and too much stock.​

Answers

Explanation:

having too much stock equals extra expense for you as it can lead to a shortfall in your cash flow and incur excess storage costs. having too little stock equals lost income in the form of lost sales, while also undermining customer confidence in your ability to supply the products you claim to sell.

Answer:

Explanation:

advantages of little stock are

the product may be sold as a requirement

disadvantage of little stock

the stock may finish at anytime

adavantage of too much stock

the product if finished can be re brought

disadvantage

the product stock may be even left for too long time

Ginger attacks Richard and cuts him with a knife. He sues Ginger. The jury awards Richard $50,000 for medical expenses and lost time at work and adds $100,000 to the award because Ginger was so vicious. The $100,000 is called: A. punitive damages B. compensatory damages C. nominal damages D. an equitable remedy E. none of the other choices

Answers

Answer: A. punitive damages

Explanation:

Punitive damages are awarded by a court in order to further punish the guilty party for their actions which according to the court shows that the party committed the crime intentionally.

They are awarded on top of the compensatory damages and are usually larger than the compensatory damage. The compensatory damage here is the $50,000 that was awarded for medical expenses which means that the $100,000 is for punitive damages.

1 points eBookPrintReferencesCheck my workCheck My Work button is now enabledItem 6 Beverly Company has determined a standard variable overhead rate of $3.80 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,600 actual direct labor hours in the production of 3,300 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead.

Answers

Answer:

$8,700

Explanation:

Variable Overhead Rate Variance = Actual Hours *(Actual Rate - Standard Rate) =

Variable Overhead Rate Variance = 1,600 * ($2.40 - $3.80)

Variable Overhead Rate Variance = 1,600 * $1.40 F

Variable Overhead Rate Variance = $2240 F

Variable Overhead Efficiency Variance = Standard Rate*(Actual Hours - Standard Hours) =

Variable Overhead Efficiency Variance = $3.80*(1,600 - 0.50*3,300)

Variable Overhead Efficiency Variance = $3.80* 50 F

Variable Overhead Efficiency Variance = $190 F

Over- or Underapplied Variable Overhead = Actual Overhead Incurred - Overhead Applied

Over- or Underapplied Variable Overhead = 1600*$2.40 - 3,300*$3.80

Over- or Underapplied Variable Overhead = $3840 - $12540

Overapplied Variable Overhead = $8,700

Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $34 per pound and costs $26 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $22 per pound to produce. The differential cost of producing Product C is a.$22 per pound b.$34 per pound c.$61 per pound d.$26 per pound

Answers

Answer:

a.$22 per pound

Explanation:

The computation of the differential cost for producing product C is given below:

As we know that

Differential cost is the extra cost that to be incurred for producing or generating the product.

Since in the question it is given that there is an additional cost of $22 per pound so the same would be considered

hence, the option a is correct

Garth is best friends with Wayne, the CEO of Great Pharma, Incorporated (GPI), a publicly traded corporation. GPI had just made an important discovery: the cure for cancer. The information has been kept secret by GPI. Before the news was made public in a press conference, Wayne told Garth about it on May 1 and that day Garth bought 10,000 shares of GPI stock. The press conference was on May 2 and after the announcement, GPI stock went up $50 a share. Garth immediately sold his stock and made $500,000. Garth is known in the law of insider trading as a/an

Answers

Answer:

Garth is known in the law of insider trading as a

secondary insider.

Explanation:

Garth's contact with inside information in GPI is not primary since he does not have the direct privileged information, unlike Wayne, his friend, who is also the CEO of GPI.  However, he has benefited from secondary information through Wayne.  His conduct is also a violation of the Securities Act as amended.  He used non-publicly available information to trade on the stock of GPI and made huge profits.

Selma Inc. is comparing several alternative capital budgeting projects as shown below.
Projects A B C
Initial Investment $40,000 $60,000 $80,000
Present value of cash inflows $60,000 $55,000 $100,000
Using the profitability index, rank the projects, starting with the most attractive.

Answers

Answer:

A

C

B

Explanation:

1.5

0.9

Angie relocated for her job and is looking for a new fitness facility to attend an aerobics class. She should make sure that these facilities follow the guidelines for health and fitness facilities established by the _____.
a. The National Center for Complementary and Alternative Medicine
b. The Better Business Bureau
c. The National Strength and Conditioning Association
d. The American Council on Exercise
e. The American College of Sports Medicine

Answers

Answer:

c

Explanation:

Stitch Fix is an online personal styling service that was founded in 2011. This company combines computer algorithms with human stylists to deliver a personalized online shopping experience to customers through a subscription service. Users fill out a survey that outlines their style preferences and price range, then stylists hand-select clothing and ship it to the customers. Which of the following statements most likely does not represent an opportunity for Stitch Fix?
A. increasing life expectancy by 5 years.
B. increase in the company's efficiency due to improvements in the value chain.
C. global economic growth will reach 10% next year.
D. a growing population of environmentally conscious consumers.

Answers

Answer:

A

Explanation:

there is no correlation between the clothes been made for customers and an increase in life expectancy  

The company's efficiency is increased as a result of tailoring customers clothes to be exactly what they want.

Also, Stitch Fix contributes to GDP as a result they can contribute to global economic growth

define biospheredefine biosphere ​

Answers

Answer:

Explanation:

The biosphere (from Greek βίος bíos "life" and σφαῖρα sphaira "sphere"), also known as the ecosphere (from Greek οἶκος oîkos "environment" and σφαῖρα), is the worldwide sum of all ecosystems. It can also be termed the zone of life on Earth. The biosphere is virtually a closed system with regards to matter, with minimal inputs and outputs. With regards to energy, it is an open system, with photosynthesis capturing solar energy at a rate of around 130 Terawatts per year. However it is a self-regulating system close to energetic equilibrium. By the most general biophysiological definition, the biosphere is the global ecological system integrating all living beings and their relationships, including their interaction with the elements of the lithosphere, cryosphere, hydrosphere, and atmosphere. The biosphere is postulated to have evolved, beginning with a process of biopoiesis (life created naturally from non-living matter, such as simple organic compounds) or biogenesis (life created from living matter), at least some 3.5 billion years ago.

Answer:

the regions of the surface, atmosphere, and hydrosphere of the earth (or analogous parts of other planets) occupied by living organisms.

The following credit sales are budgeted by Sunland Company: January $274000 February 350000 March 470000 April 360000 The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is

Answers

Answer:

$374,000

Explanation:

April Collection = $360000 x 70 % + $ 470000 x 20 % + $ 350000 x 8 %

                           = $374,000

The anticipated cash inflow for the month of April is $374,000

Bramble Corp. factors $3250000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 9% of the accounts receivable for possible adjustments. Bramble estimates the fair value of the recourse liability at $300000. What would be the debit to Cash in the journal entry to record this transaction

Answers

Answer: $3,672,500

Explanation:

Based on the information given in the question, the debit to cash in the journal entry to record this transaction will be:

= $3,250,000 - ($3,250,000 × 4%) + ($3,250,000 × 9%)

= $3,250,000 - $130,000 + $292,500

= $3,672,500

Therefore, the debit to cash will be $3,672,500.

Hordel Company needs to determine a markup for a new product. Hordel expects to sell 6,100 units and wants a target profit of $93 per unit. Additional information is as follows: Variable product cost per unit $ 80 Variable administrative cost per unit 35 Total fixed overhead 53,000 Total fixed administrative 11,050 Using the variable cost method, what markup percentage to variable cost should be used

Answers

Answer:

See below

Explanation:

Total variable cost = Variable product cost + Variable administrative cost per unit

= (6,100 × $80 per unit) + (6,100 × $35)

= $488,000 + $213,500

= $701,500

Total fixed cost = Total fixed overhead + Total fixed administrative cost

= $53,000 + $11,050

= $64,050

Total fixed cost per unit = $64,050 ÷ 6,100 = $10.5

Total cost = Total variable cost + Total fixed cost

= $701,500 + $64,050

= $765,550

Target profit = 6,100 × $93 = $567,300

Desired selling price = Total cost + Target profit

= $765,550 + $567,300

= $1,332,850

Desired selling price per unit = $1,332,850 ÷ 6,100 = $218.5

Therefore,

Markup percentage on variable cost

= [(Desired selling price per unit - Variable cost per unit) ÷ Variable cost per unit] × Variable cost per unit

= [($218.5 - 115) ÷ (115)] × 115

= 103.5%

Gross private domestic investment includes business: a. purchases of capital goods, all new construction, and inventory investment. b. purchases of all types of durable goods, all new construction, and inventory investment. c. purchases of capital goods, all new construction, and purchases of consumer durable goods. d. purchases of capital goods, all new commercial construction, and inventory investment.

Answers

Answer:

a. purchases of capital goods, all new residental constructionand inventory investment

Explanation:

It is the investment measure used for determining the GDP. It is an important part of GDP as it is used as an indicator for the productive capacity i.e. future. It involves the purchase i.e. replacement, net addition made to the capital assets, and the investment made in inventories

So according to this, the option a is considered as it involved all three thins that are shown above

Durable goods $3,000 Services 6,000 Business purchases of capital goods 400 Fixed investment 850 Exports 600 Imports 800 Nondurable goods 700 Inventory investment 200 Government transfer payments 100 Purchases of new residential housing 450 Government purchases 900 Refer to Exhibit 7-3. Consumption is equal to

Answers

Answer:

$9,700

Explanation:

The computation of the consumption is shown below;

= Durable goods + Services + Non-durable goods

= $3,000 + $6,000 + $700  

= $9,700  

We simply added the durable goods, services and the non-durable goods so that the consumption could be come

Hence, the consumption is $9,700

Therefore the same is to be considered

Using the estimated sales and production of 140,000 boxes of Chap-Off, the Accounting Department has developed the following manufacturing cost per box: Direct material $ 3.70 Direct labor 2.00 Manufacturing overhead 1.60 Total cost $ 7.30 The costs above relate to making both the lip balm and the tube that contains it. As an alternative to making the tubes for Chap-Off, Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $1.20 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials costs would be reduced by 20%. Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap-Off manufacturing costs per box will it be able to avoid

Answers

Answer:

Silven Industries

If Silven buys its tubes from the outside supplier, it will be able to avoid $1.10 of its own Chap-Off manufacturing costs per box

Explanation:

a) Data and Calculations:

Estimated Production and Sales Units of Chap-Off = 140,000 boxes

Manufacturing cost per box:      Avoidable costs

Direct material              $ 3.70           $0.74 ($3.70 * 20%)

Direct labor                      2.00             0.20 ($2.00 * 10%)

Manufacturing overhead 1.60              0.16 ($1.60 * 10%)

Total cost                      $ 7.30            $1.10

Outside supplier's price for tubes = $1.20 per box

b) Unless there an alternative use for the machine used in making the tubes internally exists, it may not be cost-effective for Silven to buy from the outside supplier.  Alternatively, it should renegotiate a price per box that is less than $1.10 in order to stop making the tubes internally.

Which of the following is not one of the three types of business arrangements in the United
States?

A. sole proprietorship

B. partnership

C. corporation

D. sole partnership

Answers

Answer:

a

Explanation:

On December 31, 2019, Burke Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line method of

Answers

Answer:

$39,405

Explanation:

Computation for the present value of the lease payments.

Using this formula

Present value of the lease payments=Beginning annual payments*Present value of an annuity due of 1 for 5 periods at 5%.

Let Plug in the formula

Present value of the lease payments=$8,668 × 4.54595

Present value of the lease payments=$39,405

Therefore the present value of the lease payments is $39,405

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