Answer:
Degree of operating leverage = 7.8
Explanation:
given data
sales = 2,080 units
per unit price = $50
Variable expenses = 25%
total fixed expenses = $68,000
solution
we get here Degree of operating leverage that is express as
Degree of operating leverage = Sales - variable cost ÷ (sales - variable cost - fixed cost) .......................1
here
Sales = 2080 × 50 = 104000
and
Variable cost = 104000 × 25% = 26000
so now put value in equation 1 we get
Degree of operating leverage = 
Degree of operating leverage = 7.8
Answer:
Find the answers in the excel file attached.
Explanation:
The impact of the accounting equation has been shown as well.
Answer:
Imports is 50.
Current account balance is -30.
Total savings is 30.
After tax reduction total savings is 10.
Explanation:
GNP is given as 100.
The consumption expenditure is 70.
The investment expenditure is 40.
The government spending is 20.
The exports are given as 20.
GNP = C + I + G + EX - IM
100 = 70 + 40 + 20 + 20 - IM
100 = 150 - IM
IM = 50
The current account balance is the difference between exports and imports.
Current account balance
= EX - IM
= 20 - 50
= -30
Total savings in the economy is the difference between disposable income and consumption.
Total savings
= Y - C
= 100 - 70
= 30
In case government reduces taxes, the private saving will increase while the public saving will decrease.
Private saving
= Y - T - C
= 100 - 10 - 70
=20
Public saving
= T - G
= 10-20
= -10
Total saving
= Private saving + Public saving
= 20 + (-10)
= 20 - 10
= 10
Answer:
The required annual installment payment is $4067.25.
Explanation:
annual installment = (20000×6%)/(1 - (1 + 6%)^6)
= $4067.25
Therefore, the required annual installment payment is $4067.25.
The answer is: b. Markets motivate individual actors to make economic decisions.
In a capitalist economy, the government has very little influence to intervene in the economy. The market is solely controlled by the power of supply and demand. When a lot of people demanded a certain type of products, people who will gain the most profit would be those who are bale to make economic decisions to fulfill the demand in the market.
