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3 years ago

Suppose the following transactions occur during the current year:

Business

1 answer:

WITCHER [35]3 years ago

6 0

Answer:

Consumption - $2,700

Investment - $0

Government Purchases - $0

Imports - $1,600

Exports - $3,00

Net Exports - $1,400

Gross Domestic Product (GDP) - $4,100

Explanation:

1. Consumption.

Consumption is the amount of goods and services consumed in the economy in a given period by citizens themselves. Things such as beer and laptops fall under here.

The consumption for the above economy are the computer purchased as well as the beer.

Adding them up would be,

= 1,100 + (40* 40)

= 1,100 + 1,600

= $2,700

Consumption is $2,700

Investment refers to the amount of money that private citizens spend on either investments or on Capital projects such as buildings. There are none here so the answer is $0.

Government Purchases are straightforwardly the transactions that involved the Government paying for goods and services. There are no such transactions here either so the answer is $0.

Imports are goods and services purchased from a foreign company by a consumer in the local Economy. From the above scenario there is a purchase from a Dutch Distributor. This is an import.

Imports are therefore,

= $40 * 40 cases of beer.

= $1,600.

Exports are goods and services that are bought by a foreign company from the local Economy. From the above there is an Export of 200 transistors to Spain.

That means that the exports in the Economy total,

= 200 * $15

= $3,000

The Net Exports are calculated by Subtracting Imports from Exports.

= 3,000 - 1,600

= $1,400

The Gross Domestic Product is a very important Economic measure that calculates the amount of goods and services produced in an Economy within a given period which is usually a year. The goods must be finished goods as intermediate goods would results in an overestimation due to Double Counting.

The formula for the GDP calculation is,

= C + G + I + X - M

Where,

C is Consumption

G is Government Spending

I is Investment and

X - M is Net Imports

GDP = 2,700 + 0 + 0 + 1,400

GDP = $4,100

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Full question:

Bobby is speaking to his friend and says, "this musical is going to cost me $60 when I buy the ticket." His friend corrects him and says, "actually, this concert will cost you more than $60 since you have to miss work." His friend is referring to the _________________.

Select the correct answer below:

a)economies of scale

b)budget constraint

c)opportunity cost

d)opportunity set

Answer:

His friend is referring to the opportunity cost

Explanation:

Opportunity costs describe the gains a person, investor or company drops out on when picking one choice over another. The cost of practicing something is previously the cost of the highest-valued alternative use. Bottlenecks are frequently a condition of opportunity costs.

The method for determining an opportunity cost is solely the contrast within the expected returns of any option. Estimating opportunity costs can lead you to more effective decision-making. Opportunity cost examination also performs a crucial role in preparing a business's capital structure.

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3 years ago

Feldpausch Corporation has provided the following data from its activity-based costing system:

juin [17]

Answer:

Product margin per unit= $7.2

Explanation:

Giving the following information:

Activity Cost Pool Total Cost Total Activity

Assembly $ 1,137,360 84,000 machine-hours

Processing orders $ 28,479 1,100 orders

Inspection $ 97,155 1,270 inspection-hours

First, we need to calculate the estimated overhead rate for each activity cost pool:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembly= 1,137,360/84,000= $13.54 per machine hour

Processing= 28,479/1,100= $25.89 per order

Inspection= 97,155/1,270= $76.5 per inspection hour

We will calculate the total cost of production and then the unitary cost to determine the product margin:

Total cost= direct material + direct labor + allocated overhead

The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit.

Total cost= 40.30*470 + 42.22*470 + (660*13.54 + 50*25.89 + 40*76.5)= 52,075.3

Unitary cost= 52,075.3/470= 110.80

Product margin= selling price - unitary cost= 118 - 110.8= $7.2

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2 years ago

Q 8.14: The financial statements of the Imagine Company report net sales of $1,000,000 and accounts receivable of $700,000 and $

sesenic [268]

Answer:

2 times

Explanation:

The computation of accounts receivable turnover is shown below:-

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable

where,

Net credit sales is $1,000,000

And, the Average accounts receivable is

= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2

= ( $700,000 + $300,000) ÷ 2

= $500,000

Accounts receivable turnover = Net sales ÷ Average accounts receivable

= $1,000,000 ÷ $500,000

= 2 times

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3 years ago

Bade Midwifery's cost formula for its wages and salaries is $1,420 per month plus $246 per birth. For the month of October, the

saul85 [17]

Answer:

activity variance = $984 F

Explanation:

given data

wages and salaries = $1,420 per month

per birth = $246

planned for activity = 107 births

actual level of activity = 103 births

actual wages and salaries = $27,795

to find out

activity variance for wages and salaries

solution

we know wages and salaries cost for October is

wages and salaries Planning budget = 1420 + ( 107 × 246 )

wages and salaries Planning budget = $27742

and

Wages and salaries Flexible budget = 1420 + ( 103 × 246 )

Wages and salaries Flexible budget = $26758

activity variance = $27742 - $26758

activity variance = $984 F

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3 years ago

Robert treats coffee and creamer as perfect complements and has very specific requirements for the ratio of creamer to coffee. H

diamong [38]

Answer:

a. Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.

b. Zero packets of creamer is the substitution effect.

Explanation:

a. Suppose that Robert has $39.00 to spend on coffee and creamer. His optimal consumption bundle contains _______cups of coffee and _________

The consumption ratio can be stated as follows:

5 Creamer = 1 cup of coffee

Budget line has an equation can also be given as follows:

B = (Pm * Qm) + (Pf * Qf) ...................... (1)

Where;

B = Budget = The amount Robert has to spend on coffee and creamer = $39.00

Pm = Price of creamer = $0.25

Qm = Quantity of creamer = ?

Pf = Price of coffee = $3.00

Qf = Quantity of coffee = ?

39 = (0.25 * Qm) + (3 * Qf)

39 = 0.25Qm + 3Qf

Since "5 Creamer = 1 cup of coffee". This also implies thal 1 creamer = 1 / 5 cup of coffee. Therefore, we have;

39 = 0.25Qm + (3 * 1/5 * Qm)

39 = 0.25Qm + (3/5)Qm

39 = 0.25Qm + 0.60Qm

39 = 0.85Qm

Qm = 39 / 0.85

Qm = 45.88

Qf = 45 / 5 = 9.18

Therefore, Robert's optimal consumption bundle contains 9.18 cups of coffee and 45.88 packets of creamer.

b. Now, suppose that the price of creamer rises to $0.50 per packet. What is the substitution effect of this price change?

Since Robert treats coffee and creamer as perfect complements, this implies that there there is nothing like substitution effect under this condition.

Therefore, zero packets of creamer is the substitution effect.

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3 years ago