Answer:
$71,000
Explanation:
The computation of operating income is shown below:-
Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)
= (43,000 × $3.80) + ($68,000 × (100% - 30%))
= (43,000 × $3.80) + ($68,000 × 70%)
= $163,400 + $47,600
= $211,000
Loss in Income if part is bought = Total costs if company bought - Total costs originally
= $211,000 - $140,000
= $71,000
Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.
Answer:
c. $9.50 each.
Explanation:
For computing the selling price, first we have to compute the total price of three cakes which is shown below:
The sale value of three cakes would be
= $3 per cake × 3 cakes
= $9
And, the producer surplus is $19.50
So, the total price of cake equals to
= $9 + $19.50
= $28.50
And, the number of cake is 3
So, the selling price would be
= $28.50 ÷ 3 cakes
= $9.50 each
Answer:
Option (B) is correct.
Explanation:
1 pound = $1.60
1 pound = $1.50
So, there is a depreciation in the value of pound relative to the dollar and appreciation in the value of dollar relative to the pound.
Now, suppose a resident of united states purchase some quantity of goods(say, 20 shirts) from the seller in United kingdom.
Price of each shirt = 2 pounds
Hence,
Before the change in exchange rate, then the buyer have to pay in dollars:
= 20 × (2 × $1.60)
= 20 × 3.2
= $64
After the change in exchange rate, then the buyer have to pay in dollars:
= 20 × (2 × $1.50)
= 20 × 3
= $60
Hence, the amount paid by the resident of united states reduced because of the fall in exchange rate. Now, they have to pay less for the same amount of commodities. This shows that there is an appreciation in the currency of US relative to UK.
Answer:
D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.
Explanation:
Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.
Answer:
This is false.
Explanation:
Diversification is An investment strategy that includes a mixture of a wide variety of investments from different categories within a portfolio.
A well diversified portfolio does not need 3 to 5 stocks from different categories instead A well-diversified portfolio needs about 20-25 stocks from various categories.