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3 years ago

Total planned real expenditures measured along the aggregate demand curve are made up of

1 answer:

3 0

Total planned real expenditures measured along the aggregate demand curve are made up of consumption spending, investment spending, government spending, and net export spending.

To add, components of aggregate expenditure are defined as the total amount that firms and households plan to spend on goods and services at each level of income.

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The degree of financial leverage for ABC Inc. is 2.5, and the degree of financial leverage for XYZ Corporation is 1.5. According

trapecia [35]

Answer:

a. ABC Inc.

Explanation:

The degree of financial leverage is expressed by the following formula,

= $\frac{EBIT}{EBT}$

The ratio represents the relationship between net operating profits and profits after financial fixed costs.

Higher the degree of financial leverage, higher will be the financial risk.

In the given case, ABC Inc.'s degree of financial leverage is higher which suggests that ABC has employed more of debt in it's financial structure owing to which higher fixed cost obligations in the form of interest payments have been created.

Thus, ABC Inc. will have a greater financial risk.

7 0

4 years ago

"Mark Williams has suggested the continuance of premium pricing for Rich Roast Coffee. Explain the strategic role of premium pri

Eddi Din [679]

Answer:

The strategic role of premium pricing is to create the perception that the products is superior to other competing products.

Explanation:

A premium pricing sets the price of a product higher than competing products. This strategy will automatically make the product stand out.

The economic circumstances that would encourage this pricing strategy include high demand for this particular product as well as a larger addressable market for it.

Generally speaking, increasing the price will also create better customer service, PR and clout. That will create an emotional connection with potential customers.

Creating and maintaining a premium brand with a steady and increasing premium patronage is the goal as suggested by Mark Williams for Roast Coffee.

3 0

3 years ago

The following data concerns a proposed equipment purchase: Cost $144,000 Salvage value $4,000 Estimated useful life 4 years Annu

Digiron [165]

Answer:

d.$74,000

Explanation:

The annual average investment is given by the average of the initial investment (144,000) and the scrap value (salvage value = 4,000)

The average investment amount is:

$AAI = \frac{144,000+4,000}{2}\\ AAAI = \$74,000$

The annual average investment amount used to calculate the accounting rate of return is: d.$74,000

6 0

3 years ago

2. Three years ago, Shawheen deposited $5,000 in a savings account. Today, the account is worth

AnnyKZ [126]

The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.

The initial deposit might have a higher purchasing power because of inflation.

When money is deposited in a savings account, the amount of money earns interest.

The value of the interest rate can be determined using this formula: interest earned / (time x amount deposited)

Interest earned = $$5,306.04 - $5,000 = $306.04

Interest rate = $306.04 / (3 x $5000) = 2.04%

Inflation is the persistent rise in the general price levels. Inflation reduces the purchasing power of money.

To learn more about inflation, please check: brainly.com/question/18072639

4 0

2 years ago

At its inception, Peacock Company purchased land for $50,000 and a building for $220,000. After exactly 4 years, it transferred

Viktor [21]

Answer:

Selvick company should record the building at $220,000 and accumulation depreciation of $44,000

Explanation:

The computation of deprecation is shown below:

Depreciation = (Original cost - salvage value) ÷ useful life

where,

Original cost is $220,000

Salvage value is 0

And, the useful life is 20 years

Now put these values to the above formula

So, the answer would be equal to

= $220,000 - 0 ÷ 20

= $11,000

And, the accumulated depreciation would be

= Depreciation × number of years

= $11,000 × 4

= $44,000

we ignored other information which is given in the question, as we have to compute the depreciation through Straight line method.

Hence, Selvick company should record the building at $220,000 and accumulation depreciation of $44,000

7 0

3 years ago