In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The sales volume variance, in terms of operating income, for September (to the nearest dollar) was:

Answers

Answer 1

Answer:

The sales volume variance is $20,000 Unfavorable.

Explanation:

Particular : Actual ; Flexible Budget ; Variance

Sales : 240,000 ; 300,000 ; 60,000 U

Variable Cost : 200,000 ; 192,000 ; 8,000 U

Contribution Margin : 40,000 ; 108,000 ; 68,000 U

Fixed Cost : 25,000 ; 80,000 ; 55,000 U

Operating Income : 15,000 ; 28,000 ; 20,000U


Related Questions

The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000. Accounts receivable are currently $525,000 and are expected to increase by 9 percent if this project is accepted. What is the project's initial cash flow for net working capital

Answers

Answer:

$607,250 outflow

Explanation:

Net Working Capital is the amount of money needed to maintain operations on a day to day basis.

Net Working Capital = Current Assets - Current Liabilities

where,

Current Assets are calculated as :

Inventory                                                        $216,000

Accounts Receivable ($525,000 x 1.09)   $575,250

Total                                                                $788,250

and

Current Liabilities = $181,000

therefore,

Net Working Capital = $788,250 - $181,000 = $607,250

Conclusion

The project's initial cash flow for net working capital is $607,250 outflow.

Farm products which are perishable and seasonal nature are supplied by

Answers

Answer:

★  Farm products which are perishable and seasonal nature are supplied by many producers.

Explanation:

Hope you have a great day :)

Membo just paid a dividend of $4.6 per share. Dividends are expected to grow at 5%, 4%, and 3% for the next three years respectively. After that the dividends are expected to grow at a constant rate of 2% indefinitely. Stockholders require a return of 7 percent to invest in Membo’s common stock. Compute the value of Membo’s common stock today.

Answers

Answer:

P0 = $99.2830  rounded off to $99.28

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on g is the constant growth rate in dividends r is the discount rate or required rate of return

P0 = 4.6 * (1+0.05) / (1+0.07)  +  4.6 * (1+0.05) * (1+0.04) / (1+0.07)^2  +  

4.6 * (1+0.05) * (1+0.04) * (1+0.03) / (1+0.07)^3  +

[(4.6 * (1+0.05) * (1+0.04) * (1+0.03) * (1+0.02) / (0.07 - 0.02)) / (1+0.07)^3]

P0 = $99.2830  rounded off to $99.28

Assume that you have entered into a fixed for fixed currency swap agreement under which every 6 months you agree to pay 3% on a notional of 110M USD and receive 4% on a notional of 100M EUR. On the date you signed the contract the spot exchange rate is 1.1 USD/EUR. Six months later the spot exchange rate is 1.05 USD/EUR. Your actual payment net of what you receive at the first payment date equals to :__________

Answers

Answer: -0.55M USD

Explanation:

The payment made will be:

= 3%/2 × 110M USD

= 0.03/2 × 110M USD

= 1.65M USD

The amount received will be:

= 4%/2 × 100M EUR

= 2% × 100M EUR

= 0.02 × 100M EUR

= 2M EUR

Since exchange rate = 1.1 USD/EUR

2M EUR = 2 × 1.1 = 2.2M USD

Therefore, net payment will be:

= 1.65M - 2.2M

= - 0.55M USD

Taxes that are paid by individuals on all money earned, including investments, are

Answers

Answer:

Personal Income Taxes

Explanation:

As the name of the tax implies, personal income taxes are simply taxes that are paid by individuals. A personal income tax is a percentage of the total amount of income a person received during a period of time, often a year, through different means: salary, permanent investments, occasional investments, and so on.

In some countries, personal income taxes are not levied on investment income in order to promote investment.

ThingOne Company has the following information available for the past year. They use machine hours to allocate overhead. Actual total overhead$80,510 Actual fixed overhead$32,000 Actual machine hours11,000 Standard hours for the units produced10,600 Standard variable overhead rate$4.60 What is the variable overhead efficiency variance

Answers

Answer:

the variable overhead efficiency variance is $1,840 unfavorable

Explanation:

The computation of the variable overhead efficiency variance is shown below:

= Standard variable overhead rate × (standard hours - actual hours)

= $4.60 × (10,600 - 11,000)

= $1,840 unfavorable

Hence, the variable overhead efficiency variance is $1,840 unfavorable

As the standard hours would be less than the actual hours so it would be unfavorable variance

The December 31, 2021, post-closing trial balance for Strong Corporation is presented below:
Accounts Debit Credit
Cash $ 23,400
Accounts receivable 23,200
Prepaid insurance 4,300
Supplies 160,000
Long-Term Investments 57,000
Land 46,000
Buildings 278,000
Accumulated depreciation 83,000
Accounts payable 37,200
Notes payable, due 2022 62,000
Interest payable 11,000
Notes payable, due 2031 121,000
Common stock 210,000
Retained earnings 67,700
Totals $ 591,900 $ 591,900

Answers

Question Completion:

Prepare a classified balance sheet as of December 31, 2021.

Answer:

Strong Corporation

STRONG CORPORATION

Classified Balance Sheet

As of December 31, 2021

Assets

Current Assets:

Cash                                    $ 23,400

Accounts receivable              23,200

Prepaid insurance                    4,300

Supplies                                160,000     $210,900

Total current assets                                

Long-Term Investments                          $57,000

Long-term assets:

Land                                       46,000

Buildings                278,000

Acc. depreciation    83,000 195,000   $241,000

Total assets                                          $508,900

Liabilities and Equity

Current liabilities:

Accounts payable                37,200

Notes payable, due 2022  62,000

Interest payable                   11,000     $110,200

Long-term liabilities:

Notes payable, due 2031                   $121,000

Equity:

Common stock                210,000

Retained earnings            67,700    $277,700

Total liabilities and equity               $508,900

Explanation:

a) Data and Analysis:

STRONG CORPORATION

Post-closing Trial Balance

December 31, 2021

Accounts                           Debit        Credit

Cash                              $ 23,400

Accounts receivable        23,200

Prepaid insurance              4,300

Supplies                          160,000

Long-Term Investments  57,000

Land                                 46,000

Buildings                        278,000

Accumulated depreciation              $83,000

Accounts payable                              37,200

Notes payable, due 2022                62,000

Interest payable                                 11,000

Notes payable, due 2031                121,000

Common stock                               210,000

Retained earnings                           67,700

Totals                        $ 591,900 $ 591,900

b) The balance sheet is a summary of the financial position or assets, liabilities, and equity of Strong Corporation as at December 31, 2021.

If a price ceiling is imposed at $15 per unit when the equilibrium market price is $12, there will be:

Answers

Answer:

the tiny thing dont work

What is the proper order to eliminate debt?

Answers

Mathematically, the most effective way to eliminate debt is to follow the avalanche method, in which you list your debts from highest to lowest by interest rate. Pay the minimum balance on each, then dedicate as much extra as you can each month to the one with the highest interest rate.

g Mad Mex just paid a dividend of $4.00. Next year they anticipate paying a dividend of $6 and then a dividend of $7 in the subsequent year. After that point, the company plans to grow dividends by at a constant 5% growth rate forever. Your required rate of return for the stock is 10%. What is the market value of the stock

Answers

Answer:

The market value of the stock is $132.73.

Explanation:

D0 = Dividend just paid = $4

D1 = Anticipated next year dividend or Year 1 dividend = $6

D2 = Dividend of in the subsequent year or Year 2 = $7

D3 = Year 3 dividend = D2 * (100% + Dividend growth rate forever) = $7 * (100% + 5%) = $7.35

Sum of present values of D1 and D2 = (D1 / (100% + required rate of return)^1) + (D2 / (100% + required rate of return)^2) = ($6 / (100% + 10%)^1) + ($7 / (100% + 10%)^2) = $11.2396694214876

Stock price in year 2 = D3 / (Required rate of return - Dividend growth rate forever) = $7.35 / (10% - 5%) = $147

Present value of Stock price in year 2 = Stock price in year 2 / (100% + required rate of return)^2 = $147 / (100% + 10%)^2 = $121.487603305785

Market value of the stock = Present value of Stock price in year 2 + Sum of present values of D1 and D2 = $121.487603305785 + $11.2396694214876 = $132.73

Therefore, the market value of the stock is $132.73.

The following events apply to Guiltf Seafood for the 2018 fiscal year:

a. The company started when it acquired $39,000 cash by issuing common stock.
b. Purchased a new cooktop that cost $15,400 cash.
c. Earned $23,900 in cash revenue.
d. Paid $14,000 cash for salaries expense.
e. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,200. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.

Required:
Record the above transactions in a horizontal statements model.

Answers

Answer:

Cash + Equipment - Accumulated depreciation = Common stock + Retained = $46,460

Explanation:

Note: See the attached excel file for the horizontal statements model.

In the attached excel file, we have:

Accumulated depreciation = (Cost of cooktop or equipment - Estimated salvage value) / Expected useful life = ($39,000 - $3,200) / 5 = $2,440

From the attached excel file, the accounting equation can be proved from the balances as follows:

Cash + Equipment - Accumulated depreciation = $33,500 + 15,400 - $2,440 = $46,460

Common stock + Retained = $39,000 + $7,460 = $46,460

Therefore, we have:

Cash + Equipment - Accumulated depreciation = Common stock + Retained = $46,460

Consider a series of end-of-period CFs spanning 2040-2050, which increase by a fixed amount each period. The amount of the first CF in the series is $149 and the increment is $76. The nominal interest rate is 1.3%; compounding occurs 5 times per year. What is the equivalent value of this series at the beginning of 2040

Answers

Answer:

The equivalent value of the series=$ 10,536.61

Explanation:

An annuity is a series of equal payment or receipt occurring for certain number of period.  

The series of cash flows of $149 and the increase $76 occurring for 10 years are example of ordinary annuity.

So we can workout their present value using the formula stated below:

This is done as follows:

The Present Value of annuity = A × (1- (1+r)^(-n))/r

Present value of  series of fixed amount  cashflow

A- periodic cash flow-149, r- semi annual rate of interest - 1.3/5= 0.26%  

n- number of period- (10×5) = 50.

Present value = 149× (1-1.0026^(-50)/0.0026=6,977.57

Present value of the increment series of cashflow

A- periodic cash flow-76, r- semi annual rate of interest - 1.3/5= 0.26%  

n- number of period- (10×5) = 50.

Present value = 76× (1-1.0026^(-50)/0.0026=3,559.03

The equivalent value of the series = Present value of the fixed amount + present value of the increment= 6,977.57 + 3,559.03= 10536.61

The equivalent value of the series=$ 10,536.61

The failure rate for each component of a 2-component series system is assumed to be one failure per 1,000 hours of operation, and the switch reliability of replacing a failed component with a spare one is 1.0. Given that there is a spare component, a. Calculate the reliability of the system for a period of 1,000 hours assuming no other failure is possible. b. Determine the approximate MTBF of the system. c. What is the system MTBF without the spare component

Answers

Answer:

a. The reliability of the system for a period of 1,000 hours, assuming no other failure is possible is:

= 99.9%.

b. The approximate MTBF (Mean Time Between Failures) without the spare component is:

1,000 hours.

Explanation:

a) Data and Calculations;

Failure rate of each component of a 2-component series system = 1/1,000 = 0.001

Therefore, the reliability rate = 1 - 0.001 = 0.999 = 99.9%

The switch reliability of replacing a failed component with a spare one = 1.0

The system's reliability = Mean Time Between Failure (MTBF) minus the Mean Time to Repair (MTTR)

= 1,000 - 1.0 = 999 hours out of 1,000

b)The equipment's Mean time between failures (MTBF) is the average time it takes the equipment or system to suffer a breakdown.  Engineers, vendors, and system analysts use the MTBF metric to measure an equipment's performance, safety, and design reliability.

Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $130,500, allowance for doubtful accounts of $925 (credit) and sales of $1,055,000. If uncollectible accounts are estimated to be 7% of accounts receivable, what is the amount of the bad debts expense adjusting entry

Answers

Answer:

the amount of bad debt expense for the adjusting entry is $8,210

Explanation:

The computation of the amount of bad debt expense for the adjusting entry is shown below:

= Unadjusted trial balance × estimated percentage - credit balance of allowance for doubtful accounts

= $130,500 × 7% - $925

= $9,135 - $925

= $8,210

Hence, the amount of bad debt expense for the adjusting entry is $8,210

Juan works for you in the Customer Service Department. He hates answering incoming customer calls and prefers to respond to customer emails. Juan is scheduled to answer the phones today and insists that you let him switch with Shawna, who is assigned to e-mail duty. Although you have refused to allow Juan to switch schedules in the past, you agree to do so today. What is your style for handling this conflict

Answers

Answer:

Accommodating Style

Explanation:

It is correct to say that the style of accommodation was chosen to deal with the conflict exposed in the question above. This style understands that a party agrees to meet a person's needs for the sake of the relationship.

Accommodation in conflict resolution can be effective when the final result will not be as impacted by what you want to accept, as in the case of the question, since the change in the roles of Juan and Shawna will not affect the final result.

Select the correct answer. How does insurance protect a policyholder against financial loss? A. by allowing the policyholder to make premium payments B. by allowing the policyholder to make a claim for reimbursement C. by allowing the policyholder to avoid maintenance costs for the insured items D. by allowing the policyholder to pay for all the losses

Answers

Answer:

by allowing the policyholder to make premium payments

Explanation:

Answer:

B. by allowing the policyholder to make a claim for reimbursement

Explanation:

Took the test on plato 100% right

WiseGuy Capital mutual fund has $200 million in assets and 10 million shares at the start of the year and with $250 million in assets and 11 million shares at the end of the year. During the year investors have received income distributions of $2 per share and capital gain distributions of $.25 per share. Assuming that the fund carries no debt, does not charge any load, and the total expense ratio is 2%, what is the rate of return on the fund

Answers

Answer:

The return rate on the fund is "23.75%".

Explanation:

The given values are:

In the starting of the year,

Mutual fund assets,

= $200

Share,

= 10 million

In the end of the year,

Income distribution,

= $2 per share

Capital gain distribution,

= $.25 per share

Total expense ration,

= 2%

Now,

The initial NAV will be:

=  [tex]\frac{200mn}{10mn}[/tex]

=  [tex]20[/tex]$

The final NAV will be:

=  [tex]250-\frac{250\times 0.01}{11}[/tex]

=  [tex]22.5[/tex]

hence,

The return will be:

=  [tex]\frac{Change \ in \ NAV+Div+Capital \ gain \ distribution}{Initial \ NAV}[/tex]

On substituting the values, we get

=  [tex]\frac{22.5-20+2+0.25}{20}[/tex]

=  [tex]\frac{4.75}{20}[/tex]

=  [tex]0.2375[/tex]

i.e.,

=  [tex]23.75[/tex]%

Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of $375,000 that can be sold for $300,000, less a 4% sales commission. Alternatively, Plymouth Company can lease the equipment for four years for a total of $320,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Plymouth Company on the equipment would total $40,000 over the four-year lease.
A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.
B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?

Answers

Answer:

A. We have:

Profit from Lease Equipment (Alternative 1) = $280,000

Profit from Sell Equipment (Alternative 2) = $288,000

Differential Effects = Net gain from selling = $8,000

B. Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.

Explanation:

A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

Note: See the attached excel file for the differential analysis.

In the attached excel file, the following calculation is made:

Cost of Sell Equipment (Alternative 2) = Sales commission = Revenue * Sales commission percentage = $300,000 * 4% = $12,000

From attached excel file, we have:

Profit from Lease Equipment (Alternative 1) = $280,000

Profit from Sell Equipment (Alternative 2) = $288,000

Differential Effects = Net gain from selling = $8,000

B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?

Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.

Direct material budget. Inglenook Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of Chablis in 2015. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2015.

Answers

Answer:

2,530,000 bottles

Explanation:

Regarding the above information, we will compute the number of bottles to be purchased in 2015 as seen below

Purchase in units = Usage + Desired ending material inventory units - Beginning inventory units

Purchase in units = 2,500,000 + 80,000 - 50,000

Purchase in units = 2,530,000

Therefore, the number of bottles to be purchases in 2015 is 2,530,000

How would you change bankruptcy law?

Answers

The provisions of Section 706(a) of the Bankruptcy Code permit debtors to convert a Chapter 7 case into a Chapter 13 case. However, the debtor cannot convert if the Chapter 7 case previously was converted from a case filed under a different chapter on request of a creditor, the trustee, or the bankruptcy court.

To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 13% discount. During May, employees purchased 15,000 shares at a time when the market price of the shares on the New York Stock Exchange was $13 per share. KL will record compensation expense associated with the May purchases of:

Answers

Answer:

$25,350

Explanation:

Calculation to determine what KL will record compensation expense associated with the May purchases of

Compensation expense =[(15,000 shares

x $13 per share)*13%]

Compensation expense =$195,000 x 13%

Compensation expense =$25,350

Therefore KL will record compensation expense associated with the May purchases of $25,350

Macmillan Toys Inc. is located in the nation of Ruffino near the nation of East Fenwick. Macmillan Toys is considering expanding into Rusalka. Both countries have similar consumer incomes and knowledge bases and share a common language. Also, the transportation networks between the countries are strong. Even so, the two nations have a long-standing dispute concerning the control of an area of land along their common border. Currently, Ruffino rules this land.

What would most likely prevent Macmillan Toys from expanding into Rusalka?

Answers

Answer: Political Distance

Explanation:

Political distance refers to a difference in opinion and policies as well as relations that countries have amongst themselves. In this scenario, this is the most likely bone of contention that would prevent Macmillan Toys from expanding into Rusalka.

This is because land disputes fall under political distance and can get very serious. So serious in fact that nations have gone to war over such disputes with the latest being Azerbaijan and Armenia. Macmillan Toys may therefore find it difficult to expand into the country due to this land dispute.

You may file a complaint with OSHA if you believe a violation of any of the following situations exist in your workplace.
Safe conditions
Job Hazard Analysis
Imminent Danger
• No Hazards

Answers

Answer: Imminent Danger

Explanation:

A complaint with OSHA can be filed with the existence of the following workplace situation C. Imminent Danger.

What is OSHA?

OSHA stands for the federal government's regulatory agency known as the Occupational Safety and Health Administration.  OSHA is one of the agencies of the United States Department of Labor.  It has powers to inspect, examine workplaces, and impose sanctions.

Thus, employees can file complaints with OSHA when there is an imminent danger, but they do not need to do so where safe conditions, job hazard analysis, and no hazards exist.

Learn more about filing OSHA complaints here: https://brainly.com/question/10078747

This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020. Refer to Flower Power. If the company uses the double-declining-balance depreciation method, what amount is the depreciation expense for 2020

Answers

Answer:

Annual depreaciation 2020= $2,400

Explanation:

Giving the following information:

Purchase price= $12,000

Salvage value= $2,000

Useful life= 5 years

To calculate the depreciation expense under the double-declining balance, we need to use the following formula:

Annual depreciation= 2*[(book value)/estimated life (years)]

2019:

Annual depreaciation= 2*[(12,000 - 2,000) / 5]

Annual depreaciation= 4,000

2020:

Annual depreaciation= 2*[(10,000 - 4,000) / 5]

Annual depreaciation= $2,400

Income Statement; Net Loss The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 20Y7, the end of the fiscal year: Depreciation Expense $16,900 Insurance Expense 8,280 Miscellaneous Expense 6,590 Rent Expense 68,300 Service Revenue 324,500 Supplies Expense 4,060 Utilities Expense 26,030 Wages Expense 255,200 Prepare an income statement. Acorn Health Services Co. Income Statement For the Year Ended January 31, 20Y7

Answers

Answer:

See below

Explanation:

Acorn Health Services Co.

Income statement for the year ended, January 31st

Service revenue $234,500

Expenses:

Depreciation expense

$16,900

Insurance expense

$8,280

Miscellaneous expense

$6,590

Rent expense

$68,300

Supplies expense

$4,060

Utilities expense

$26,030

Wages expense

$255,200

Total expense ($385,360)

Net income (loss) $150,860

You won the lottery when the jackpot was $3,300,000 (annual payments of $165,000 paid for 20 years). Your choice is to take the annual payments for 20 years or take the lump sum payout today. The lottery administration uses a 4% interest rate. What is the value of the lump sum payout

Answers

Answer:

Lump sum= $2,242,403.85

Explanation:

First, we need to calculate the future value of the annual payments using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {165,000*[(1.04^20) - 1]} / 0.04

FV= $4,913,382.97

Now, the lump sum is the present value of the annual payments:

PV= FV / (1 + i)^n

PV= 4,913,382.97 / (1.04^20)

PV= $2,242,403.85

Tax Increment Financing zones encourage economic development by Group of answer choices reducing or eliminating state or local taxes paid by businesses locating in the zone. reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone. cutting the interest rate on private debt issued on business investment increments in the zone. providing financing to help pay additional taxes when business expands in an impacted area. All of the above. None of the above.

Answers

Answer:

Tax Increment Financing zones encourage economic development by

reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone.

Explanation:

A Tax Increment Financing (TIF) zone is an economic development tool that reserves the property taxes within the zone for a period of time.  Thereafter, the accumulated taxes are used to finance approved infrastructure and development improvement projects in the TIF zone through developer refunds.  As an economic tool, a TIF zone encourages continued development of an area by attracting investors to the location.

Which best explains why banks consider interest on loans to be important?

Answers

Answer:

what are the options as answers?

Explanation:

Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.24. The average fixed expense per month is $1,600. An average of 2,100 cups are sold each month. What is the CM Ratio for Coffee Klatch?

Answers

Answer:

The contribution margin ratio for Coffee Klatch is 83%.

Explanation:

Given that Coffee Klatch is an espresso stand in a downtown office building, and the average selling price of a cup of coffee is $ 1.49 and the average variable expense per cup is $ 0.24, and the average fixed expense per month is $ 1,600, to determine what is the CM Ratio for Coffee Klatch if an average of 2,100 cups are sold each month, the following calculation must be performed:

Contribution margin ratio: (sales - variable costs) / sales

((2,100 x 1.49) - (2,100 x 0.24)) / (2,100 x 1.49) = X

(3.129 - 504) / 3.129 = X

2.625 / 3.129 = X

0.83 = X

Thus, the contribution margin ratio for Coffee Klatch is 83%.

Bummerland finds itself in a recession caused, as assumed in class, a sticky nominal (money) wage (W) which is too high to clear the labor market.
Bummerland has a Treasury and a "Federal Reserve" (called the Bummerb¬ank). At a meeting of officials of both agen¬cies, various antirecess¬ionary policies are considered. The economic staffs of both agencies are seriously split on issues such as how interest sensitive investment is and how interest sensitive the demand for money is. However, they are in agreement that the marginal propensity to consume (b) is .75 and the marginal propensity to hold cash (k) is .2. Bummerland has banks, but the reserve requirement is 100%, so they don't create money.
Debate has narrowed to four prospective policies. Your as¬signment is: (1) illustrate these policies using IS,LM diagrams; (2) compare as completely as possible ( if you can't, you must explain what additional information would be required ) the effects of these policies on Y*, r, I*, the real wage, and unemployment. Class format is strongly encour¬aged.
Here are the four policies: (1) a $50 billion increase in the money supply by means of open market opera¬tions; (2) a $50 billion increase in the money supply to be introduced by reducing tax collections; (3) a $50 billion increase in the money supply to be introduced through government spending; (4) a $50 billion increase in unemployment benefits paid for with a tax increase.

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is this a book if so send me a link

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