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3 years ago

Match each economic scenario with the correct economic term.

Business

1 answer:

kkurt [141]3 years ago

6 0

Answer:

The answer is:

1 - Underutilization

2 - Efficiency

3 - Unattainability

Explanation:

Efficiency in economics means a situation in which all resources are optimally distributed to serve each entity in the best way while minimizing waste and inefficiency.

Underutilization in economics is also a a situation in which lesser resources are being utilized than the economy is capable of utilizing.

Unattainability is a situation in which what one to accomplish or achieve is not possible.

1 - Underutilization

2 - Efficiency

3 - Unattainability

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You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The current price quote is 1,405.5. The co

Inessa [10]

Answer:

d. -$4,300.00

Explanation:

Calculation for What is your current profit or loss on this investment

Using this formula

Current profit or loss = Contract size*(Current price quote-Quoted price )

Let plug in the formula

Current profit or loss = 100 *($1,405.5-$1,448.5)

Current profit or loss = 100 *-$43

Current loss = -$4,300.00

Therefore your current loss on this investment will be -$4,300.00

6 0

3 years ago

Rowan Co. purchases 200 common shares (40%) of JBI Corp. as a long-term investment for $600,000 cash on July 1. JBI Corp. paid $

aleksley [76]

Answer:

1. Jul-01

Dr Investment in JBI Corp $ 600,000

Cr Cash $ 600,000

2. Nov-01

Dr Cash $ 5,000

Cr Investment in JBI Corp $ 5,000

3. Dec-31

Dr Investment in JBI Corp $ 100,000

Cr Investment revenue $ 100,000

Explanation:

1. Preparation of Rowan's entries to record the purchase of JBI shares

Jul-01

Dr Investment in JBI Corp $ 600,000

Cr Cash $ 600,000

[To record investment in common shares of JBI Corporation]

2. Preparation of Rowan's entries to record the receipt of its share of JBI dividends

Nov-01

Dr Cash [12,500*40%] $ 5,000

Cr Investment in JBI Corp $ 5,000

[To record receipt of dividends]

3. Preparation of Rowan's entries to record the December 31 year-end adjustment for its share of JBI net income

Dec-31

Dr Investment in JBI Corp [$250,000*40%] $ 100,000

Cr Investment revenue $ 100,000

[To record share of net income for the year]

4 0

3 years ago

Assume you are the new Product Manager in our Amazon Prime business and are in charge of Pricing. The VP would like to lower the

vaieri [72.5K]

Answer:

Provided in Explanation

Explanation:

This is a very general question however I’ll try to answer it to the best of my knowledge.

If I use my own assumptions then these will be the Projections:

Selling Price $79.99 Selling Price $69.99

Cost of Sales/unit $40.00 Cost of Sales/unit $40.00

Expenses/unit $15.00 Expenses/unit $15.00

Demand @ $79.99 1000 Demand @ $69.99 1200

Sales $79,990.00 Sales $83,988.00

Cost of Sales $40,000.00 Cost of Sales $48,000.00

Expenses $15,000.00 Expenses $18,000.00

Profit $24,990.00 Profit $17,988.00

The final decision however relies on the Price Elasticity of the Product. If the Product is Price elastic then lowering the Price will lead to a significant rise in Demand. However if the Product is Price inelastic then lowering the Price will not lead to a significant rise in Demand and thus profit margins will be lowered. If the Product is Price inelastic then it is better to increase prices in order to gain more profits. In the case of Unit Elasticity the change in Demand will be at the same proportion as price change so it won’t be of any use to change the Price.

3 0

3 years ago

The Alston Inn is managed by Inns, Inc. The management contract requires 6 percent of total revenue to be transferred to the rep

Scrat [10]

Answer:

1.) Inn's annual total revenue = $7,300,000

2.) Inn's annual net operating income = $1,095,000

3.) Inn's debt service coverage ratio for the year = 9.13

Explanation:

The room revenue is first calculated as follows:

Room revenue = Number of guestrooms * ADR * Percentage of occupancy * 365 days = 200 * $100 * 70% * 365 = $5,110,000

We can now proceed as follows:

1.) Determine the Inn's annual total revenue.

Annual total revenue = Room revenue / Paid occupancy percentage = $5,110,000 / 70% = $7,300,000

2.) Determine the Inn's annual net operating income

Annual net operating income = Total revenue * 15% = $7,300,000 * 15% = $1,095,000

3.) Determine the Inn's debt service coverage ratio for the year.

Debt service coverage ratio = Net operating income / Annual debt service = $1,095,000 / ($10,000 * 12) = 9.13

5 0

3 years ago

Dr. Peabody recorded $6,820 in services provided to clients who make monthly payments. Which of the following statements is corr

11111nata11111 [884]

Answer:

D. Accounts receivable is debited $6,820; the dental revenues account is credited $6,820.

Explanation:

The two accounts that are affected here are accounts receivables ( Assets) and the revenue account ( affects capital). The accounts receivable will increase as payment is expected at the end month. Since receivable are assets, an increase in receives is recorded as a debit of the account receivable account. $ 6,820 will be debited on the accounts receivables.

The services rendered increases the revenue to Dr. Peabody. Revenue is considered a capital account because it increases the owner's equity. An increase in a capital account is credited. Dr. Peabody will credit the dental revenue account with $6,820.

3 0

3 years ago