Answer:
$350 million
Explanation:
the formula for calculating GDP is consumption + investment + government spending + net exports, since apparently this is a closed economy with no exports or imports, the formula should be:
GDP = C + I + G
- GDP = $1,330 million
- C = $700 million
- I = $280 million
G = $1,330 - $700 - $280 = $350 million
Answer: B. Decrease
Explanation:
Return on investment refers to the ratio between the net income and investment. It should be noted that a high return on investment implies that the investment's gains compare favourably to the cost.
In this scenario, since a large amount of raw material was bought in advance and stored in the manufacturing plant inventory, this will lead to an increase in the cost of production which therefore will reduce the return in investment.
Therefore, the correct option is B.
Answer and Explanation:
Since the following information is mentioned in the question
The purchase cost is $902,000
Accumulated depreciation is $842,000
The proceeds from the sale of plant asset is $89,800
So based on the above information, the sale of the plant asset would be shown in the investing activities of the cash flow statement in a positive amount
Hence it would be reported under the investing activities section
Answer:
$13400
Explanation:
<u>Workings</u>
Unit of of production
Direct materials - 3.10
Direct labor - 7.70
Variable manufacturing overhead - 8.2
Supervisor's salary - 3.6
Depreciation - 2.00
Allocated general overhead 7.20
Total cost - 31.8
Cost per year = 31.8*14000
445,200
Cost of buying = 25.50
Allocated general overhead - 7.20
Total cost =32.7
Annual cost 32.7*14000 = 457800
Annual opportunity cost of internal production = 26,000
The overall advantage of buying = 26000 - (457800-445200)
= 13,400
