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4 years ago

What are the costs associated with inflation?

Business

2 answers:

earnstyle [38]4 years ago

8 0

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vesna_86 [32]4 years ago

3 0

Answer:

The Costs of Inflation. The costs of inflation include menu costs, shoe leather costs, loss of purchasing power, and the redistribution of wealth.here are many costs associated with inflation; the volatility and uncertainty can lead to lower levels of investment and lower economic growth.

Explanation:

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Presented below are the components in Gates Company’s income statement. Determine the missing amounts. Sales Revenue Cost of Goo

Mumz [18]

Answer:

(a) $52,300; $9,200

(b) $33,600; $10,000

Explanation:

(a) Sales Revenue = $82,400

Cost of Goods Sold = ?

Gross Profit = $30,100

Operating Expenses = ?

Net Income = $20,900

Gross profit = Sales revenue - Cost of goods sold

$30,100 = $82,400 - Cost of goods sold

Cost of goods sold = $82,400 - $30,100

= $52,300

Net income = Gross margin - Operating expenses

Operating expenses = Gross margin - Net income

= $30,100 - $20,900

= $9,200

(b) Sales Revenue = $110,600

Cost of Goods Sold = $77,000

Gross Profit = ?

Operating Expenses = ?

Net Income = $23,600

Gross profit = Sales revenue - Cost of goods sold

= $110,600 - $77,000

= $33,600

Operating expenses = Gross margin - Net income

= $33,600 - $23,600

= $10,000

Cost of Goods Sold = $75,100

Gross Profit = $87,200

Operating Expenses = $47,700

Net Income = ?

Gross profit = Sales revenue - Cost of goods sold

Sales revenue = Gross profit + Cost of goods sold

= $87,200 + $75,100

= $162,300

Net income = Gross margin - Operating expenses

= $87,200 - $47,700

= $39,500

4 0

4 years ago

In a small, closed economy, national income (GDP) is $ 400.00 million for the current quarter. Individuals have spent $ 150.00 m

Mashcka [7]

Answer:

The amount spent in this economy in the said quarter is $100,000,000.00

Explanation:

However, in closed economies what it simply means is that there are no exports and imports.

Investment (I) = business investment plus residential investment plus inventory investment. Government Purchases (G) = general government consumption plus general government investment. Net Exports (NE) = exports minus imports plus net tourism.

∴ to calculate the amount of money spent on this closed economy, I will use the Expenditure Approach formula for GDP and make Investment the subject of the formula which is

GDP formula is used which states that total output/GDP (Y) is equal to Consumption (C) + Investment (I) + Government Spending (G) + Net exports (NX). Where net exports is exports (X) minus imports (M): NX = X – M.

Where:

GDP (Y) = C + I + G + (X-M)

Where:

GDP (Y) = $400,000,000.00

C = $150,000,000.00

I = 0

G = $150,000,000.00

(X-M) = 0

GDP (Y) = C + I + G + (X-M) =

$400,000,000.00 = $150,000,000.00 + (I) + 150,000,000.00 + (X-M)

Making (I) the subject of the Formula

GDP- C -G = I

∴ $400,000,000.00 - $150,000,000.00 - $150,000,000.00 = I

∴ $400,000,000.00 - $300,000,000.00

= $100,000,000.00

The amount spent in this economy in the said quarter

= $100,000,000.00.

Note: I did not add the Tax because I used the Expenditure approach method which does not include the tax values while the Income Approach method does include it but excludes Export and Import values.

6 0

3 years ago

The mythical Three Floyds Brewery in Munster, Indiana makes a beer called Zombie Dust, which it sells in large bottles to pubs a

chubhunter [2.5K]

Answer:

Setup cost (S) = 1800

Holding cost (H) = 2.5

Annual demand (D) = 20000

Daily demand (d) = Annual demand / Number of working days = 20000 bottles/250 = 80 bottles daily

Daily production (p) = 400

a. Given production quantity Q = 10000

Holding cost = 1/2*[(p-d)/p]*QH

Holding cost = ((400-80)/(2*400))*10000 *2.5= 10000

Ordering cost = (D/Q)S = (20000/10000)*1800 = 3600

Total Cost = Annual holding cost + Annual ordering Cost = 10000 + 3600 = 13600

b. Economic production Quantity (EPQ) = Q

Q = √2DS/H √p/p-d

Q = √2*20000*1800/2.5 √400 / 400-80

Q = 6000 bottles

Holding cost = 1/2*[(p-d)/p]*QH

Holding cost = ((400-80)/(2*400))*6000 *2.5= 6000

Ordering cost = (D/Q)S = (20000/6000)*1800 = 6000

Total Cost = Annual Holding cost + Annual ordering cost = 6000 + 6000 = 12000

C. Cost difference between the current production schedule and the EPQ = 13600 - 12000 = 1600

4 0

3 years ago

For the Somerset Furniture Company described in Case Problem 10.1 in Chapter 10, determine the product lead time by developing a

m_a_m_a [10]

Answer:

Possible transportation modes are discussed below in detail.

Explanation:

• Purchase Request: 12 - 25 days

• Process buy request abroad: 10 - 20 days.

• Manufacturing process: 60 days

• Transport from plant to port: 1-14 days

• Paperwork: 5 - 10 days

• Wait for the container: 1 - 7 days*

• Load compartments: 3 - 6 days

• Ship days: 28 days

• Custom clearance: 7 – 14 days

• Warehouse transportation: 1-3 days

Delivery time is around 136 minimum days and 191 maximum days. Likewise, the average delivery time is 163 days. Companies such as international trade specialist, trade logistics companies and Internet exchanges can help the company to reduce the delivery time by facilitating the trade channels. These intermediate channels can help to attain objectives in timely manner.

5 0

3 years ago

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area

notsponge [240]

Answer:

$50,094.8

Explanation:

Flexible Budget are budget prepared by taking the actual activity level achieved at standard cost/price. WHILE

q is taken as the actual level of activity which is 240 diving hours.

Puget Sound Divers

Flexible Budget For the Month Ended May 31

Revenue ($440.00 ×240) $105,600

Expenses:

Wages and salaries ($11,800 + $128.00×240) $42,520

Supplies ($3.00 ×240) $720

Equipment rental ($2,100 + $22.00 ×240) $7,380

Insurance ($4,000) $4,000

Miscellaneous ($530 + $1.48×240) $885.2

Total expense $55,505.2

Net operating income ($105,600- $55,505.2) $ 50,094.8

Net operating income =Revenue - Total expenses

3 0

3 years ago

Read 2 more answers