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andreev551 [17]
2 years ago
13

The manufacturer of Brand A automobile tires claims that its tire can save 120 gallons of fuel over 60 comma 000 miles of​ drivi

ng, as compared to a popular competitor​ (Brand B). If gasoline costs ​$3.00 per​ gallon, how much per mile driven does this tire save the customer​ (Brand A versus Brand​ B)?
Business
1 answer:
ivolga24 [154]2 years ago
5 0

Answer:

By choosing tire A, the consumer will save $0.006 USD ($0.6 cents) per mile.

Information:

  • Saving: 120 gl over 60,000 miles
  • Gasoline: $3/gl

Explanation:

Total saving in 60,000 miles = 120gl * $3/gl = $360

Total saving in 1 mile = $360/60,000 = $0,006

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When agent Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that:__________
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Answer:

Advertising a similar property can and does create interest in their property

Explanation:

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When interest in a type of property is created it generates interest that will lead to more sales.

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3 years ago
The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
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Answer:

12.75 %

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Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

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4 0
2 years ago
Consider an economy with a corn producer, some consumers, and a government. In a given year, the corn producer grows 30 million
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a. <u>GDP using product approach</u>

There are no intermediate goods inputs. Corn producer grows 30 million bushels of corn and each bushel of corn worth is $5.

GDP = 30 million * $5

GDP = $150 million

<u>GDP using expenditure approach</u>

i) Consumers buy 20 million bushels of corn

Consumption = 20 million * 5

Consumption (C) = $100 million

ii) Corn producer adds 5 million bushels to inventory

Investment = 5 million * $5

Investment (I) = $25 million

iii) Government buys 5 million bushels of corn  

Government spending = 5 million * $5

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Profit income = $70 million

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b. Private disposable income = GDP + Net factor payments + Government transfers + Interest on the government debt - Total taxes

Private disposable income = $150 million + 0 + $5 million + $10 million - $30 million

Private disposable income = $135 million

 

Private savings = Private disposable income - Consumption

Private savings = $135 million - $100 million

Private savings = $35 million

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Government savings = $30 million - $5 million - $10 million - $5 million

Government savings = $10 million

National savings = Private savings + Government savings

National savings = $35 million + $10 million

National savings = $45 million

Government budget surplus = Government savings = $10 million

Government deficit = (-) $10 million

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