Answer:
80
Explanation:
As for the required reserve balance the information is provided as follows:
Total amount deposited by Jose = $400
Provided the reserve balance = 20%
Therefore, reserve balance from this payment = $400 
20% = $80.
As it is not specified clearly, that this $400 is inclusive or exclusive of the reserve balance, it is assumed that reserve will be created out of such balance.
Therefore, reserve maintained from this $400 = $80 and the rest $400 - $80 = $320 will be usable freely, without any restrictions.
Answer:
b. direct materials of $49,662, direct labor of $65,451, utilities of $10,121, and supervisor salaries of $14,900
Explanation:
The Supervisor's Salary is a fixed cost.
Therefore, a flexible budget for 13,900 units of production would show:
- Direct materials of $49,662,
- Direct labor of $65,451,
- Utilities of $10,121
- Supervisor salaries of $14,900
Answer:
United States continue to have quotas because it increases the price of imported Sugar and thereby reducing the quantity demanded.
Explanation:
To start with, quotas is a restriction imposed by a government. Quotas limits the quantity of a good that can be imported into a country during a specific period of time. In this question, an import license specifies the quantity of Sugar that be brought into (imported) the USA.
United States continue to have these quotas because import quotas reduces the supply of imported goods (Sugar), thereby, preventing an uncontrolled importation of Sugar. This raises the price of imported Sugar against the price of locally produced Sugar which is lower in price. Intuitively, consumers will go for lower price (locally produced Sugar) which satisfies the law of demand for normal goods.
Therefore, it helps the domestic producers to stay in the competition.
Answer:
b. Firm A engaged in predatory pricing.
Explanation:
Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.
Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.
Based on this information only, an argument can be made that Firm A engaged in predatory pricing.
Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.
Answer: The exchange rate pass through is 41.7 = 6.666666667%÷16%
Explanation:
Currently, from last year to the current year, there has been a 16% increase change in the exchange rate and a 6.667% change in the price. The exchange rate pass through is 41.7 = 6.666666667%÷16%
For every increase in 1% of the exchange rate, there has been a 41.7% increase in the current price of the DVD player.
