Answer:
Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared.
a. True
Explanation:
The incidence of the FICA tax refers to the extent to which an individual employee or the employing organization suffers from the imposition of the FICA tax. In the final analysis, the incidence may not be borne by the organization but consumers of its goods and services, depending on the elasticity of demand. Employers and employees usually split the FICA tax equally. The FICA (Federal Insurance Contribution Act) refers to the federally mandated tax for Social Security and Medicare.
Answer:
Effect on income= $2,500 increase
Explanation:
Giving the following information:
Contribution margin= $44
The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 200*44 - 6,300
Effect on income= $2,500 increase
Answer:
Monthly deposit= $164.24
Explanation:
Giving the following information:
Future value= $1,000,000
Interest rate= 0.118/12= 0.00983
Number of periods= 35*12= 420 months
<u>To calculate the monthly deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,000,000*0.00983) / [(1.00983^420) - 1]
A= $164.24
Answer:
<em>a. True</em>
Explanation:
Yes! the given statement is <em>very true</em>, because as we know that all the level of a nation's rate of interest has an influence on the BOP ( generally known as Balance Of Payments ) financial account, and also relatively low real interest rates are generally encouraged.
An outflow of funds are been pursued at a higher interest rates in an another nation's currency as well.
Answer:
France has comparative advantage in production of wine
Austria has comparative advantage in production of rye.
4 bushels of rye for each bottle of wine
1 bottle of wine for each bushel.
b. 4 bushel of rye per bottle of wine.
Explanation:
France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.
