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Nuetrik [128]
3 years ago
11

Jake manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash. On payday, he immediately g

oes out and buys as many goods as he can for himself for the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of _______. a. menu costs
b. shoe-leather costsc. unit-of-account costsd. inflation.
Business
1 answer:
poizon [28]3 years ago
7 0

Answer:

The given condition is an example of:

A. Menu costs

Explanation:

In the given question mentioning data is that

Jake is been managing a grocery store in any country which is experiencing high rate of inflation. He is mentioned to be paid in cash.

On his very payday he went outside immediately and bought as many goods as he could for himself as he was going to get his pay today and was needing those items.

So, he thought of buying all the items he is needing as for the next two weeks  in order of prevention of the money in his wallet from losing value due to high inflation rates.

And at last what he couldn't spend on buying for all that amount he converted that amount into most stable foreign currency for being used as a steep fee.

So all this were an example of :

A. Menu costs

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Answer:

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In this question, we are asked to calculate the after tax return to the corporation and the after tax return to the investor.

What is meant by after tax return is simply the profit made after we subtract the amount of taxes. It is simply revenue less the amount of tax paid.

We calculate the values as follows:

For the corporation;

The after tax return can be calculated by the following mathematical expression;

After tax return to Corporation = 0.06 - (0.06 * 0.3) * 0.34 = 0.0538 = 5.38/100 which is same as 5.38%.

After tax return to the individual investor = 0.06(1-0.15) = 0.06 * 0.85 = 0.051 or just 5.1%

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