Answer:
During a period of inflation, Mast’s ending inventory and income tax payable will be higher using LIFO than FIFO.
Explanation:
In a period of inflation the closing inventory will be higher because of increase in price. In LIFO the oldest unit is sold first and the last purchased remains in the inventory. So Closing inventory is higher which decrease the Cost of goods sold and Increase in profit and ultimately Increase in Taxes as well. In FIFO the Newest unit is sold first and the oldest unit purchased remains in the inventory. So closing inventory is lower which increase the Cost of goods sold and decrease in profit and ultimately decrease in Taxes as well.
Answer:
23.0%
Explanation:
According to the problem, computation of given data are as follows,
Initial cost of equipment = $1,000,000
Net income after tax = $230,000
So, we can calculate the accounting rate of return by using following formula,
Accounting rate of return = Net income after tax ÷ Initial cost of equipment
By putting the value, we get
Accounting rate of return = $230,000 ÷ $1,000,000
= 0.23 or 23%
Hence, accounting rate for the given data is 23%.
The optimal quantity of pizza slices for John to buy is 5 slices.
<h3>How to calculate the quantity?</h3>
From the information given in the diagram, it can be seen that the marginal utility from the consumption of the 6th slice is zero.
In this case, the optimal quantity of pizza slices for John to buy is 5 slices.
When John buys 8 slices, the total utility will be:
= 20 + 12 + 10 + 6 + 2 + 0 - 2 - 6
= 42 utils.
When John’s parents do not allow him to use any savings, his optimal consumption bundle of pizza and funnel cakes is $20.
At John’s optimal consumption bundle, the total utility that he will gain will be:
= (20 + 12) + (50 + 40 + 32 + 20)
= 32 + 142
= 174 utils
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Answer:
a. short-run aggregate supply left.
Explanation:
<u>Aggregate Supply</u> is the total quantity of goods & services, all the sellers in economy are planning to sell, in an economy during a period of time. Short Run Aggregate Supply is upward sloping, as supply is directly related to price level.
If there is future <u>pessimism </u>in economy; due to corporate scandal, international tensions, and loss of confidence in policymakers. Then, producers will be apprehensive about their products sale, will also feel price vulnerable. This would imply that the short run aggregate supply would decrease, the SRAS curve would shift leftwards.
The cash flow (payment or receipt) made for a given period or set of periods. The present value, PV, of a series of cash flows is the present value, at time 0, of the sum of the present values of all cash flows, CF. We start with the formula for PV of a future value ( FV) single lump sum at time n and interest rate.
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