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LUCKY_DIMON [66]
3 years ago
5

Smoltz Motors has plants around the country that specialize in specific models of cars. Smoltz has determined that lower demand

has led the firm’s inventory of SUVs to be too high. Smoltz wants to stop production for its SUVs and focus on its sedans.
This example describes a real option to ______ .
Business
1 answer:
Grace [21]3 years ago
8 0

Answer:

The correct answer is:  abandonment option.

Explanation:

An abandonment option comes into place when a company withdraws from an obligation because it is not being profitable anymore. It is a clause that allows one party in a given contract to stop being part of it before the term initially established is fulfilled.

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Assume that the money demand function is (M/P)d = 2,200 – 200r, where r is the interest rate in percent. The money supply M is 2
liubo4ka [24]

Answer: The nominal money supply should set at 1,600.

Explanation:

Given that,

Money demand function: (M/P)d = 2,200 – 200r

r - Interest rate

Money supply (M) = 2,000

Price level (P) = 2

If the fed wants to set the interest rate at 7% then,

Money supply = money demand

(\frac{M}{P})^{s} = (\frac{M}{P})^{d}

\frac{M}{P} = 2,200 – 200r

P = 2 and r = 7%

\frac{M}{2} = 2,200 – 200 × 7

                            M = 800 × 2

                            M = 1,600

The nominal money supply should set at 1,600.

6 0
3 years ago
A company purchased $2,300 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $450 worth of merchandise. On
Aleksandr [31]

Answer:

Dr Accounts payable 1850

Cr Merchandise inventory $37

Cr Cash $1813

Explanation:

Preparation of the journal entry to record the payment on July 12 Using the gross method,

JOURNAL ENTRY

Jul-12

Dr Accounts payable ($2300-450) 1850

Cr Merchandise inventory ($1850*2%) $37

Cr Cash $1813

($1850-$37)

(Being entry recorded for payment to supplier)

7 0
2 years ago
Which of the following does not represent an asset of a company?
mariarad [96]

Answer:

4. Amounts owed to suppliers

Explanation:

We know that

Balance sheet comprises of assets, liabilities and the stockholder equity

The assets could be classified into current asset, fixed asset, and the intangible assets

While the liabilities are also classified into current liabilities and the long term liabilities  

The account receivable, equipment, supplies have come on the asset side of the balance sheet whereas the account payable or amount owed to suppliers have come on the liabilities side of the balance sheet

So, the most appropriate option is 4.

3 0
3 years ago
How can discussions,projects,campaigns and events support victims of xenophobia​
charle [14.2K]

Answer: They can raise awareness

Explanation:

Xenophobic victims have been through a lot of discrimination, hatred, physical abuse in most scenario. What most of them need in most cases are encouragement, opportunities to help them better.

Any project, campaign and event done would also raise awareness to those discriminating against them to understand that there is no need for that, most times some of this programs are for raising the awareness and when these awareness are raised they help the sanity of the environment where this xenophobic activities happen previously.

8 0
3 years ago
A company sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $780,000. The same variab
nikitadnepr [17]

Answer:

6,000 units

Explanation:

We know that

Break even point in units = (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

The selling price would be

= $500 - $500 × 4%

= $500 - $20

= $480

And, the Variable expense per unit is $350

So, the contribution margin per unit would be

= $480 - $350

= $130

So, the break even point in  unit should be

= $780,000 ÷ $130 per units

= 6,000 units

3 0
3 years ago
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