When a company uses a different company to produce all or part of the product, this is known as.

Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 i

Schach [20]

Answer:

The firm earns revenues of $360,000 per year. To receive a normal profit, the firm described above would have to earn additional revenue of $90,000

Explanation:

As per the information provided in the question, the current profit/loss after deducting all expenditure from income is as follows:

Particular Amount ($)

Revenue 360,000

Less: Wages and Salaries (200,000)

Less: Materials (75,000)

Less: New Equipment (30,000)

Less: Rented Property (20,000)

Less: Interest Costs (35,000)

Profit/Loss 0

As confirmed from the calculation above currently no profit is being earned even after the owner/manager not receiving income from the firm. Therefore, the firm should generate additional revenue of $90,000 in order to earn normal profit.

8 0

3 years ago

AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $527,000 cash, and YZ contri

Vaselesa [24]

Answer:

a. AB and YX are both general partners.

AB's basis in the partnership's interests = $527,000 + ($263,500/2) = $658,750

YZ's basis in the partnership's interests = $457,000 + ($263,500/2) = $588,750

Each partner share 50% interest in the recourse debt.

b. AB is a general partner, and YZ is a limited partner.

AB's basis in the partnership's interests = $527,000 + $263,500 = $790,500

YZ's basis in the partnership's interests = $457,000

Only AB has a share in the recourse debt, since YZ is a limited partner it has no recourse debt share.

5 0

3 years ago

g The international Fisher effect: Group of answer choices is an example of absolute PPP focuses on changes over time in the rel

blsea [12.9K]

The international Fisher effect is the difference in nominal interest rates across countries reflecting the difference in expected rates of inflation in those countries.

<h3>What does the Fisher effect show?</h3>

It shows that the nominal rate of interest in a nation usually follows the inflation rate because an inflation-adjusted rate needs to be formed.

This then leads to a change in exchange rates between countries because the difference in nominal rates shows the difference in inflation which is what devalues or appreciates a currency.

Find out more on the fisher effect at brainly.com/question/16036767.

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7 0

2 years ago

You are on the team of executives at Star Bank. You have been meeting as a team to discuss the future of the bank, including big

Komok [63]

Strategic planning is the type of planning used by team of Star bank.

<h3>What is strategic planning?</h3>

Strategic planning is a type of planning that is channeled towards a purpose.

Companies make use of strategic planning to help focus on a particular goal or aim

Therefore, Strategic planning is the type of planning used by team of Star bank.

Learn more on strategic planning below

brainly.com/question/17924318

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7 0

2 years ago

Steve sells his home to Srivani and ends up with a producer surplus of $100,000. Srivani has a consumer surplus of $1,000 from t

amid [387]

Answer:

Both parties experience surplus, but there is inequity because Steve has a much larger producer surplus

Explanation:

The options to this question wasn't provided. Here are the options : Both parties experience surplus, but there is inequity because Steve has a much larger producer surplus. Both parties experience surplus, so the transaction was equitable. Only Steve benefits from the sale. Srivani will not be happy with her purchase.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Producer surplus is the difference between the price of a good and the least amount the seller is willing to sell his good.

While both parties earn a surplus, the producer surplus exceeds the consumer surplus . Therefore, the seller benefited more from the trade than the consumer.

I hope my answer helps you

3 0

3 years ago