Ask question

Ask question

All categories

3 years ago

12

If a firm bakes cookies and sells them for $1,000 while spending $100 on sugar, $150 on chocolate, $50 on other supplies, $300 o

n wages and $400 on rent, what is its value added?

1 answer:

Fantom [35]3 years ago

8 0

The value added is 0, because if we added the value they spend on sugar and the other supplies and etc. it will be $1,000

You might be interested in

Diz Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Swiss francs. These two currencies are highly

VikaD [51]

Answer:

Yanta Co. has a higher exposure to exchange rate risk than Diz Co.

The reason is that Yanta Co. does not have net inflows of euros. Instead, its euro transactions yield net outflows.

It will always be in need of euros to settle its foreign debts or obligations, unlike Diz Co. with foreign assets.

Explanation:

a) Data and Analysis:

Diz Co. has net cash inflows of euros and net cash inflows of swiss francs

Yanta Co. has net cash outflows of euros and net cash inflows of swiss francs

b) Exposure to exchange rate risk or currency risk is the financial risk arising from fluctuations in the value of the US dollars against the Euro or Swiss Francs in which Diz Co. has some foreign assets while Yanta Co. has foreign obligations.

5 0

3 years ago

Ben is employed as a carpenter and his wife, Marilyn, is a self-employed consultant. Besides Ben’s salary, Ben and Marilyn own a

Alona [7]

Answer:

B. The cost of utilities is deductible for AGI

Explanation:

The entire cost of the utilities would be for AGI deduction assuming no personal use of the condo. The employer portion of Marilyn's self-employment tax would be deductible as well.

Adjusted gross income (AGI) is a measure of income calculated from your gross income and used to determine how much of your income is taxable. It is the starting point for calculating a filer's tax bill in the United States and, among other things, is the basis for many deductions and credits. When filing your taxes online—as about 80% of filers do—the software you use will calculate your AGI for you.

3 0

3 years ago

If the Ricardian equivalence theorem LOADING... is not relevant, then an income-tax-rate cut A. will result in a multiple time

LenKa [72]

Answer:

The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.

Explanation:

Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.

This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.

If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.

The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.

6 0

3 years ago

0.5 points eBookPrintReferences Check my work Check My Work button is now enabledItem 3Item 3 0.5 points Agee Storage issued 37

trapecia [35]

Answer:

Decline in Agee's total paid up capital is $14,000,000

Explanation:

<u>Computation of decline in Paid-Up capital</u>

Particulars Amount

Cash paid for first repurchase $10,000,000

(1 million shares*$10)

Value of first purchase $12,000,000

(1 million * $12 <u> </u>

Benefit on first repurchase $2,000,000

Cash paid for second repurchase = $16,000,000

(1 million shares * $16)

Value of second repurchase $12,000,000

(1 million * $12) <u> </u>

Reduction in Total paid-in-capital <u>$14,000,000</u> ($2 million + $12 million)

8 0

3 years ago

You and several friends are stranded on a desert island. the group decides to gather coconuts. being afraid of heights, the grou

klasskru [66]

Capital is a way of having land and labor to be involved for production. In the given scenario above, the catapult and rock would be a capital since it is needed to be made by people in order to gain something or it is used for production.

3 0

3 years ago

Read 2 more answers