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Zolol [24]
3 years ago
5

In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazine

s. In 2006, a sandwich cost $4 and a magazine cost $2. In 2007, a sandwich cost $5. The base year is 2006. if the consumer price index in 2007 was 125, then how much did the magazine cost in 2007?
Business
1 answer:
rusak2 [61]3 years ago
5 0

Answer:

$2.5

Explanation:

Given:

Sandwich Cost in 2006 (P0) = $4

Magazine Cost in 2006 (p0) = $2

Sandwich Cost in 2007 (P1) = $5

Magazine Cost in 20067 (p1) = ?

Consumer Price Index in 2007 = 125

Computation:

Consumer Price Index = (Current year price / Base year Price)100

125= (p1 / $2) x 100

1.25 = p1 / $2

1.25 x $2 = p1

$2.50 = p1

$2.50 = Magazine Cost In 2007

Therefore, cost of magazine in 2007 is $2.50

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Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margi
GrogVix [38]

Answer:

a.38%

b. No because the margin is above the requirement at 38%

c.-150%

Explanation:

a.

1000 shares*$40 per share = 40000

margin requirement is 50% so equity = 20000

1 year later price increase to 50

$1000 shares*$50 per share = 50000

dividend = $2*1000 = 2000

margin = 20000/52000 = 38%

b.

No because the margin is above the requirement at 38%

c.

Price of 1000 stock year 1 at 50$/share = 50000

40000 – 50000 = -10000

Rate of return = (-10000 -20000)/20000 = -150%

3 0
3 years ago
Wells Fargo & Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it rep
andreev551 [17]

Answer:

<u>EQUITY AND LIABILITIES</u>

<u>EQUITY</u>

Retained earnings                    $ 41,563

Preferred stock                          $ 8,485

Common stock - Issued             $ 8,743

Treasury stock                           $ 2,450

Share Premium                        $ 52,878

Total Equity                                $114,119

Explanation:

The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.

<u />

8 0
3 years ago
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Overland Corporation took
suter [353]

Answer:

See attached file

Explanation:

8 0
2 years ago
Determine the market potential for a product that has 20 million prospective buyers who purchase an average of 2 per year and pr
Gnoma [55]

4,000,000 units should be sold a company

<u>Explanation:</u>

<u>Calculating the sales in units:</u>

It has been given that the toal market demand is $20 million, average quantity purchased by buyer per year is 2 units, price average is $50, and the desired share of the market is 10%.

Q=n * q * p

Where:

Q = Total market demand,

N = number of buyers in the market, q = average quantity purchased by the buyer per year,

P = price of average unit

$\mathrm{Q}=20,000,000$ buyers $* 2$ per unit per buyer $* \$ 50$ per unit

= $2,000,000,000

Market share = $(20,000,000 \text { buyers } * 2 \text { units per buyer }) * 0.1$

= 4,000,000 units

Hence, the company should sell 4 million units to achieve 10 percent market share.

6 0
2 years ago
Consider a corrupt provincial government in which each housing inspector examines two newly built structures each week. All the
patriot [66]

Answer:

$104,000

Explanation:

The computation is  shown below:

= Bribe cost per each housing inspector × number of weeks in a year × number of newly built structures each week

= $1,000 × 52 weeks × 2

= $104,000

We simply multiply the three components i.e Bribe cost per each housing inspector, number of weeks in a year, and the number of newly built structures each week so that the accurate value can come.

4 0
3 years ago
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