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Veseljchak [2.6K]
3 years ago
5

Whenever currency is deposited into a commercial bank, cash goes out of circulation and, as a result, the supply of money is red

uced.
1. True
2. False
Business
1 answer:
N76 [4]3 years ago
3 0

Answer:

The answer is false

Explanation:

The money supply is the total value of money available in an economy at a given point in time.

M1 is the money supply that is composed of physical currency and coin, demand deposits etc. Therefore, money deposited into a commercial

bank adds and does not reduce the money in circulation.

The answer to the question is false.

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Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contr
Anna11 [10]

Answer:

A. $36.55

B. 5116 units

C. 7114 units

Explanation:

Requirement 1: Weighted average contribution margin per unit

Lens A = $38 x 25% = $9.5

Lens B = $30 x 40% = $12

Lens C = $43 x 35% = $15.05

Total Contribution margin per unit = $36.55

Requirement 2: Breakeven if fixed cost is $187,000

Break even point (units) = Fixed cost / Contribution per unit

Break even point (units) = 187,000/36.55

Break even point (units) = 5116 units

Lens A = 5116 x 25% =  1279 units

Lens B = 5116 x 40% = 2046 units

Lens C = 5116 x 35% = 1791 units

Requirement 3: How many units to be sold to generate $73,000 profit

Required units = Fixed cost - required profit / contribution per unit

Required units = ($187,000-$73,000)/$36.55

Required units = 7114 units

Lens A = 7114 x 25% =  1779 units

Lens B = 7114 x 40% = 2846 units

Lens C = 7114 x 35% = 2489 units

6 0
3 years ago
If the ratio of currency to deposits (cr) increases, while the ratio of reserves to deposits (rr) is constant and the monetary b
blagie [28]

Answer:

C. the money supply decreases.

8 0
3 years ago
On January 2, 2020, Vaughn Manufacturing began construction of a new citrus processing plant. The automated plant was finished a
12345 [234]

Answer:

Vaughn Manufacturing

1. The weighted-average accumulated expenditures for 2017 were:

c. $1,200,000.

2. The interest capitalized for 2017 was:

b. $144,000

3. The weighted-average accumulated expenditures for 2018 by the end of the construction period were:  

= $2,546,000.

4. The interest capitalized for 2018 was:

= $267,000.

Explanation:

a) Data and Calculations:

Expenditures for the construction were as follows:

Date                                   Amount of     No. of months  Weighted Average

                                         expenditure                                 Expenditure

2020:

January 2, 2020                 $613,000         12/12                     $613,000

September 1, 2020            1,802,400          4/12                       600,800

December 31, 2020          1,802,400          0/12                        0

Total weighted-average expenditure for 2020 =                $1,213,800

Which is approximately = $1,200,000

Interest capitalized = $144,000 ($1,200,000 * 12%)

Capitalized expenditure by December 31, 2020 = $1,344,000 ($1,200,000 + $144,000)

Date                                   Amount of     No. of months  Weighted Average

                                         expenditure                                 Expenditure

2021:

January 1, 2021                 1,344,000        9/9                   $1,344,000

March 31, 2021                  1,802,400       6/9                      1,201,600

September 30, 2021        1,203,000        0/9                      0

Total weighted-average expenditure for 2020 =           $2,545,600

Which is approximately $2,546,000

Interest capitalized for 2018 = $267,330 ($2,546,000 * 10.5%)

Approximately $267,000

7 0
3 years ago
Dunavant Service Company views share repurchases as treasury stock. Dunavant purchased shares and then later sold the shares at
Alex

Answer:

The correct answer is Retained earnings: no effect; Paid-in capital: increase

Explanation:

The nominal value of a share establishes a limit price and no company can issue its shares at a lower price, although already issued, the price of the shares is subject to the market price. When capitalization of a corporation is required, it must be defined whether the capital will be obtained from current shareholders or new shareholders. If it is one of the existing ones, there are two options: either the cash contribution is received or the system of delivering dividends payable through shares is used, in which case, it should be clarified whether the shares delivered are preferential or privileged.

4 0
3 years ago
B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 60 perc
Romashka-Z-Leto [24]

Answer:

NPV = $13.9m

NPV = $11.05m (if conducts customer segment research)

Explanation:

DATA

Successfull probability = 60%

Unsuccessful probability = 40%

Initial selling = $19.1m

Unsuccessful present value  = $6.1 m

Research cost = $1.14m

Discount rate = 14%

Solution ( NPV If the firm goes to market immediately)

NPV = (Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)

NPV = (60% x $19.1m) + ( 40% x $6.1 m)

NPV = $11.46m + $2.44m

NPV = $13.9m

Solution (NPV if the firm conducts customer segment research)

NPV = ((Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)/1+discount rate ) - research cost

NPV = \frac{13.9m}{1+0.14} - 1.14

NPV = $12.19m - $1.14m

NPV = $11.05m

Note: We can calculate NPV if the firm conducts customer segment research by dividing NPV calculated above by (1+discount rate) and research cost is deducted from the whole.

4 0
3 years ago
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