First three together in the first I think
Answer: Option C : $300; Negative $100
Linda's accounting profit = $300
Economic Profit= -$100
Explanation:
Total money generated = cost price x number of units = $100 x 10 = $1000
Profit = Total revenue generated - Cost of production = $1000 - $700 = $300
Linda's accounting profit = $300
Economic Profit = $300 - ($20 x 20hours)
Economic Profit= $300 - $400 = -$100
Answer:
The correct answer is B
Explanation:
Due to the implementation lag, recognition lag and legislative lag linked with the enacting fiscal policy, the policies focus on the smoothing the business cycle, which sometimes have the opposite effect.
The risk of the policies being the pro- cyclical instead of being advantageous in a time of recession diminishes or decline when the recessions are severe and long.
It is more likely the fiscal policies which could de implemented or executed and developed in time if it will take a long time for the economy to self- correct.
Answer:
0.012634
Explanation:
Mean return is the expected value, or mean, of all the likely returns of investments comprising a portfolio.
Mean return E(r) = (probability of a normal economy × return of a normal economy) + (probability of economy in recession × return of economy in recession )
Therefore, the mean return E(r) = (0.80 ×0.165) + (0.20 ×-0.116) = 0.1088
Variance = 0.80 (0.165 - 0.1088)^2 + 0.20 (-0.116 - 0.1088)^2 = 0.012634
The variance of the returns on this stock is 0.012634
<u>Solution and Explanation:</u>
The number of units that must be sold in order to achieve a target pretax income of $218,000
![$=$ [Fixed cost + Required pre-tax income]/Contribution Margin per unit](https://tex.z-dn.net/?f=%24%3D%24%20%5BFixed%20cost%20%2B%20Required%20pre-tax%20income%5D%2FContribution%20Margin%20per%20unit)
<u>Calculation of contribution Margin per unit </u> Selling price [$986000 divided by58000 units] $17.00
Less : Variable cost - Direct Materials = $2.77
- Direct Labor = $4.15
- Variable Factory overheads = $2.60
- Variable Marketing cost = $0.88
Contribution Margin per unit = $6.60 <u>
Total Fixed cost </u>
Fixed factory overhead = $104,000.00
Fixed marketing costs = $110,800.00
Total Fixed cost = $214,800.00 The number of units that must be sold in order to achieve a target pretax income of $218,000
![=[\$ 214800+\$ 218000] / \$ 6.60](https://tex.z-dn.net/?f=%3D%5B%5C%24%20214800%2B%5C%24%20218000%5D%20%2F%20%5C%24%206.60)
= 65576 units.
