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2 years ago

Why is the GDP an important economic measurement?

Business

1 answer:

denis-greek [22]2 years ago

5 0

Answer:

GDP is important because it gives information about the size of the economy and how an economy is forming

Explanation:

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In the united states, say gasoline costs consumers about $2.50 per gallon. in italy, say it costs consumers about $6 per gallon.

Nata [24]

What are the answer choices?

7 0

2 years ago

Pine Street Inc. makes unfinished bookcases that it sells for $58.10. Production costs are $37.49 variable and $10.50 fixed. Bec

love history [14]

Answer:

Pine Street should sell finished bookcases because they have a higher contribution margin.

Explanation:

We compare the contribution margin of the two categories to find out whether Pine Street should sell unfinished or finished bookcases.

Pine Street Inc.

Unfinished bookcases

Contribution Margin

Sales Price $58.10

Less Production costs

Variable Costs $37.49

Fixed Costs $10.50 (47.99)

Contribution Margin $ 10.11

Pine Street should sell finished bookcases because they have a higher contribution margin. It is almost double of the unfinished book cases contribution margin.

Pine Street Inc.

Finished bookcases

CONTRIBUTION MARGIN

Sales Price $74.91

Less Production costs

Variable Costs $37.49 + $5.79 = $ 43.28

Fixed Costs $10.50 $ (53.78)

Contribution Margin $ 21.13

4 0

3 years ago

A business has a key person insurance policy. Who or what would be the beneficiary of the policy ? A. The children of the key pe

Masja [62]

Answer: the business

Explanation:

A P E X

6 0

3 years ago

Read 2 more answers

Mike and Karen were divorced. Their only marital property was a personal residence with a fair market value of $1.5 million and

Soloha48 [4]

Answer:

Mike's recognized gain from the transfer of the house to him is:

$175,000

Explanation:

a) Data and Calculations:

Marital property = $1,500,000

Cost of property = $575,000

Residual value = $925,000

Alimony to Karen = $750,000 ($150,000 * 5)

Balance (Mike's) = $175,000

$175,000 represents the excess of the fair market value of the marital property after deducting the cost of property and the alimony paid to Karen. A gain of $175,000 is recognized by Mike after the property sale.

7 0

3 years ago

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equ

taurus [48]

Answer:

8.15 %

Explanation:

Weighted Average Cost of Capital (WACC) is the business Cost of permanent sources of finance pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of Equity x Weight of Equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt

Remember to use the After tax cost of debt :

After tax cost of debt = Interest x ( 1 - tax rate)

= 6.50% x (1 - 0.40)

= 3.90 %

therefore,

WACC = 11.25% x 55% + 6.00% x 10% + 3.90 % x 35%

= 8.15 %

Thus,

Quigley's WACC is closest to 8.15 %.

3 0

3 years ago