Answer:
The price mechanism allows the consumer to gain sovereignty in the market. They have 'spending votes' in the market, which enables them to choose what is bought and sold. Generally, the free market allows for an efficient allocation of resources.
Explanation:
ANSWER: Surplus by $1,152
EXPLANATION: Traci had a budget of $770 for fixed expense and $530 for living expenses per month which adds up to $1,300 expenses per month. Since she has no annual expense, her yearly total expense would be $15,600.
Traci earns $16,752 so by subtracting her expense from income, we get $16,752 - $15,600 = $1,152
Answer:
Credit common stock by 20,000
Credit additional paid in capital by 20,000
Explanation:
The par value of the share are $10 per share the number of shares are 2000 so initially we will credit common stock by (2000*10) = 20,000
Then we will credit the additional paid in capital by (11-10)*(2,000) =2000 as it is the additional money that we are getting on the par value.
Answer:
5%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
The interest rate implicit in the agreement can be determined by finding the internal rate of return.
Cash flow in year 0 = $-196,401
Cash flow each year from year 1 to 7 = $33,942
IRR = 5%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
See answer below
Explanation:
1. Degree of operating leverage
Selling price $126,000
Variable cost $50,400
Contribution margin $75,600
Fixed cost $23,000
Net operating income $52,600
Degree of operating leverage = Contribution margin / operating income = $75,600 / $52,600
= 1.44
