<u>Solution and Explanation:</u>
A 30bn$ tax cut will mean that there is 35bn$ of added take home pay available to all the wage earners.
This would simply mean that 14% of 30bn $ = 4.2bn$ would be added to the national savings and the rest 86% of 35bn$ = 25.8bn$ would be additional spending. This would inturn generate 25.8bn$ of added income (since someone's expenditure is someone else's income);
So out of this 25.8bn$ 14% will be saved and 86% will be respent; and this chain will continue;
So total added consumption expenditure due to the 30bn $ tax cut =
(Rounded off)
This is the total additional spending (consumption in an economy because of the stimulus provided by the tax cut of 30bn$);
The total impact on the economy over long run = 184bn$ of additional expenditure
Answer:
If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300
Explanation:
currently Blue Ridge's costs are:
variable costs = $69,000
fixed costs = $69,000
total $138,000
total cost per unit = $138,000 / 45,000 units = $3.0667 per unit
if Blue Ridge decide to outsource the production of the parts:
variable costs = 45,000 x $4 = $180,000
decrease in fixed costs = $69,000 x -30% = -$20,700
total costs = $159,300
If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300
Answer:
B) False
Explanation:
Consumers always regard employees as the company's agents. So whenever they do something wrong, their bad behavior is directly associated with the company that they work for. So any bad deed form the employees will be seen as a company's bad deed.
This will hurt both employees and employers, since no employer will want to keep an employee that acts improperly, and at the same time the employer's business will also suffer.
Answer:
the amount of depreciation for Year 1 is $3,948
Explanation:
Step 1 : Determine Cost of Equipment
<em>Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.</em>
Purchase Price $31,000
Installation and testing $2,800
Total Cost $ 33,800
Step 2 : Determine the depletion rate
Depletion rate = (Cost - Salvage Value) ÷ Estimated Production
= ($ 33,800 - $5,600) ÷ 100,000 units
= 0.282
Step 3 : Determine the Depreciation Expense
Depreciation Expense = Depletion rate x Units Produced
= 0.282 x 14,000 units
= $3,948
Conclusion
the amount of depreciation for Year 1 is $3,948
