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jek_recluse [69]
3 years ago
14

The fact that the equilibrium quantity of loanable funds may increase along with an increase in the real rate of interest A. ass

umes that demand for loanable funds increases with supply remaining unchanged. B. assumes that supply of loanable funds increases with demand remaining unchanged. C. contradicts the law of demand. D. assumes that demand for loanable funds decreases with supply remaining unchanged.
Business
1 answer:
joja [24]3 years ago
7 0

Answer:A. assumes that demand for loanable funds increases with supply remaining unchanged

Explanation:

Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption. ... One way to make an investment is to lend money to borrowers at a rate of interest.

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Joe's Hardware is adding a new product line that will require an investment of $ 1,512,000. Managers estimate that this investme
Sati [7]

Answer:

6.05 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow. For this purpose we use the net cash flows to calculate the payback.

Payback working is attached with this answer please find it.

7 0
3 years ago
Factory X manufactures steam cleaners for engines and has a high level of sales variability. The units sell for $3,200 each but
Scilla [17]

Answer:

a. Some examples of fixed costs are; Insurance, utility charges, and Rent.

b. Variable cost=$1,280

c. Fixed costs=$1,000,000

d. Break-even level of units=521 units

e. Break-even level of sales=$1,667,200

Explanation:

a.

Fixed costs are the expenses that do not change with the level of output, while the variable costs depend on the amount of output produced. The fixed costs typically stay the same with the production levels. The variable costs on the other hand change as the production changes.

Some examples of fixed costs in a typical manufacturing plant are;

1. Insurance

2. Utility charges

3. Rent

4. Property taxes

b.

The variable costs are the Material and labor costs, since a higher or a lower level of output will affect the quantity of materials and labor needed. Thus their costs change with the output.

Variable cost=material cost+labor costs=$1,280

c.

The fixed costs=$1,000,000 since they don't vary with the sales. Sales is a direct function of the output.

d. The break even point is the point at which the Revenue from sales equal the costs. This can be expressed as;

Revenue=price per unit×number of units sold

where;

price per unit=$3,200

number of units sold=n

replacing;

Revenue=3,200×n=3,200 n

Total cost=fixed cost+(cost per unit×number of units)

fixed cost=$1,000,000

cost per unit=$1,280

number of units=n

replacing;

Total costs=1,000,000+(1,280×n)=1,280 n+1,000,000

Since at break-even point, revenue equals cost;

3,200 n=1,280 n+1,000,000

3,200 n-1,280 n=1,000,000

1,920 n=1,000,000

n=1,000,000/1,920

n=520.83

n=521

Number of units is approximately 521 at break-even

Break-even level of units=521 units

e.

Break-even sales=price per unit×break-even level of units

where;

price per unit=$3,200

break-even level of units=521 units

replacing;

Break-even level of sales=3,200×521=$1,667,200

4 0
3 years ago
Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an insta
Mrrafil [7]

Answer:

January 2, 2020

Dr Accounts receivable 410,000

    Cr Sales revenue 370,000

    Cr Unearned revenue 40,000

Dr Cost of goods sold 300,000

    Cr Merchandise inventory 300,000

Accrual accounting states that revenues must be recognized during the periods that they actually occur (i.e. the earning process is completed). Since the installation process lasts 6 months, the unearned revenue will be recognized as the process is being completed.

4 0
3 years ago
The Tax Cuts and Jobs Act suspends all miscellaneous itemized deductions that are subject to the 2% floor under present law. For
olga55 [171]

Answer:

D. Medical expenses

Explanation:

The California tax law follows the new federal tax provision for the year 2018 for medical expenses. Only part of the medical expenses can be deducted which is allowed as per federal tax law, that is, 7.5% of the adjusted gross income.

8 0
2 years ago
Stuart Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The foll
Paha777 [63]

Answer:

Stuart Modems

a. The per-unit cost of making and selling 2,600 pagers is:

= $64.55

b. Assuming that Stuart could sell the pagers at a price of $50 each, it should still go with the plan to make and sell the pagers.  The variable cost for producing a pager is $38.60.  Each pager will make a unit contribution margin of $11.40, which will help to offset the facility-level costs since they will not be influenced by the production of the pagers.

Explanation:

a) Data and Calculations:

Production and sales volume = 2,600 pages

Unit-level manufacturing costs = $36

Total manufacturing costs = $93,600 ($36 * 2,600)

Sales commissions = $6,760 ($2.60 * 2,600)

Facility-level costs:

Depreciation on manufacturing equipment       ($76,000)

Rent on the manufacturing facility                     ($66,000)

Depreciation on the administrative equipment ($16,800)

Other fixed administrative expenses                ($79,950)

Total facility-level costs = $238,750

Overhead rate = $25.95 ($238,750/9,200)

Cost of making and selling 2,600 pagers:

Total manufacturing costs =           $93,600

Overhead costs ($25.95 * 2,600)    67,470

Sales commissions =                           6,760

Total cost of making and selling  $167,830

Unit cost = $64.55 ($167,830/2,600)

Variable cost of making and selling a unit of pager:

Unit-level manufacturing costs = $36.00

Sales commissions =                      $2.60

Total variable costs =                   $38.60

Revenue per unit =                      $50.00

Contribution per unit =                  $11.40

8 0
2 years ago
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