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3 years ago

Why is it important to compute real GDP?

Business

1 answer:

levacccp [35]3 years ago

3 0

Answer:

C. To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next

Explanation:

Real GDP calculates the monetary value of all goods and services that a country produce within one year after adjusting it to inflation or deflation.

Knowing Real GDP often used as a measurement to find out the economic growth of a country. If the Real GDP is increased, it indicates that the people in that country become more productive and it is most likely that their disposable income is also increased.

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You purchased 2,200 shares of the New Fund at a price of $25 per share at the beginning of the year. You paid a front-end load o

Sati [7]

Answer:

rate of return 9.22%

Explanation:

15% return on fund value - 2.4% fund expenses = 12.6% net fund gain

then, the shares were purchased with a loan which required to paiy 3% of interest up-front

therefore, we didn't invest 100% of the loan but 97%

0.97 x .126 = 0,12222

now, we subtract the 3% paid of interest:

.1222-0.03 = .0922 = 9.22%

7 0

3 years ago

Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit $590 Variable cost p

Fofino [41]

Answer:

The company will need to sale 3,883 units to maintain its current operating income of 400,000

Explanation:

We will calculate the point at which the company mantains his current income in units at the new scenario:

$\frac{Fixed\:Cost + target \: income}{Contribution \:Margin} = Break\: Even\: Point_{units}$

<u>Where:</u>

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

625 - 190 = 435 each units contributes this amount to afford the fixed cost and make a gain.

Current income: contribution x units sold - fixed cost

(590-190) x 4,000 - 1,200,000 = 400,000

(1,200,000 + 89,000 + 400,000) / 435 = 3,882.75862 = 3,883 units

The company will need to sale 3,883 units to maintain its current operating income of 400,000

5 0

3 years ago

Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following

Natali [406]

Answer:

Big Tommy Corporation

Profit and Loss for the year ended December 31

Sales 404,000

Cost of Goods Sold 279,000

Gross Profit 125,000

<em>Operating Expenses:</em>

Salaries and Wages Expense 58,000

Office Expenses 16,000

Travel Expenses 1,000 75,000

Operating Income: 50,000

Non-Operating Expenses

Income Tax Expense 15,000 15,000

Net Income 35,000

Explanation:

Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses

Operating income is Profit generated from Primary activities of the company

Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.

7 0

3 years ago

Lindsey needs a car to get back and forth from her home in the city to her university, which are 4 miles apart. When shopping fo

Brilliant_brown [7]

Answer:

Impulse Buying

Explanation:

She isn't thinking about the long term effects of her purchase, like the repayments, but is instead thinking about her short term gain.

5 0

3 years ago

Holiday Laboratories Laboratories purchased a high speed industrial centrifuge at a cost of $420,000. Shipping costs totaled $15

blsea [12.9K]

Answer:

$455,000

Explanation:

Given that,

high speed industrial centrifuge at a cost = $420,000

Shipping costs = $15,000

Foundation work = $8,000

additional water line = $3,000

Labor and testing costs = $6,000

Materials used up in testing = $3,000

Total Costs to be capitalized:

= High-speed industrial centrifuge + Shipping costs + Foundation Work + Additional Water Line + Labor and testing costs + Materials used in testing

= $420,000 + $15,000 + $8,000 + $3,000 + $6,000 + $3,000

= $455,000

4 0

3 years ago