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MaRussiya [10]
3 years ago
15

A company’s flexible budget for 16,000 units of production showed sales, $48,000; variable costs, $24,000; and fixed costs, $17,

000. The operating income expected if the company produces and sells 17,000 units is: Multiple Choice $ 7,000. $44,000. $5,000. $8,500. $22,000.
Business
1 answer:
IrinaVladis [17]3 years ago
8 0

Answer:

The correct answer is $8,500

Explanation:

Total sales $48,000 with 16,000 units

Variable cost $24,000

Fixed cost  $17,000

First we need to know the variable cost per unit.

$24,000(variable cost) / 16,000 (units sold) = $1.5 (variable cost per unit)

Then we need to know the price of each article

48,000 (total sales) / 16,000 (units)= $3 (sells price per unit)

Then we replace at the formula "production cost"

(units to sell "if the company produces and sells"  *  variable cost per unit) + fixed cost = Production cost <u>(for the units produced. if the units change, the production cost change too)</u>

$17,000(units to produce and sell)* 1.5 variable cost per unit =25,500/ 17,000(fixed cost) = $42,500 Production cost.

Finally the question says: "if the company produce and sells"

So we need to know the total amount in dollars that we receive for the products.

$3 (sells price per unit) * 17,000 (new units sold) = $51,000 money received  

Operating income if the company produces and sells 17,000

$51,000 (money received) - $42,500 (production cost for the 17,000 units) = $8,500

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Answer:

C. the price is below the equilibrium price

Explanation:

Remember, in the law of demand and supply the quantity supplied is dependent on the value of the price of a good.

In this case the price is below the equilibrium price; meaning demand would be higher than the supply which results in the shortage of the good and the company therefore raises the price of the good.

For example, the price of oranges decrease in the equilibrium price (from $10 to $5), resulting in an increase in the demand for oranges.

The increase in demand would lead to shortage, making farmers increase price wanting to supply more.

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3 years ago
XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank
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Answer and Explanation:

The answer is attached below

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2 years ago
If the supply of a product increases, then we would expect equilibrium pricea.to increase and equilibrium quantity to decrease.
azamat

Answer:

The correct answer is option d.

Explanation:

An increase in the supply of a product will cause the supply curve to shift to the right. This rightward shift will cause the demand curve and supply curve to intersect at a lower price.

This will cause the quantity demanded of the product to increase and the price of the product to decrease.

A decrease in the supply will cause the quantity demanded to decrease and price to increase.

The effect of supply increase is indicated through the given figure.

5 0
3 years ago
Today is your 20th birthday, and your parents just gave you $5,000 that you plan to use to open a stock brokerage account. You p
Alex Ar [27]

Answer:

You anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.

Explanation:

To calculate this, we use the formula for calculating the future value (FV) and FV of ordinary annuity as appropriate as given below:

FVd = D * (1 + r)^n ......................................................................... (1)

FVo = P * {[(1 + r)^n - 1] ÷ r} ...................... (2)

Where,

FVd = Future value of initial deposit or balance amount as the case may be = ?

FVo = FV of ordinary annuity starting from a particular year = ?

D = Initial deposit = $5,000

P = Annual deposit =s $500

r = Average annual return = 12%, or 0.12

n = number years = to be determined as necessary

a) FV in five years from now

n = 5 for FVd

n = 4 for FVo

Substituting the values into equations (1) and (2), we have:

FVd = $5,000 * (1 + 0.12)^5 = $8,812

FVo = $500 * {[(1 + 0.12)^4 - 1] ÷ 0.12} = $2,390

FV5 = Total FV five years from now = $8,812 + $2,390 = $11,201

FVB5 = Balance after $5,000 withdrawal  in year 5 = $11,201 - $5,000 = $6,201.

b) FV in 10 years from now

n = 10 - 5 = 5 for both FVd and FVo

Using equations (1) and (2), we have:

FV of FVB5 = $6,201 * (1 + 0.12)^5 = $10,928

FVo = $500 * {[(1 + 0.12)^5 - 1] ÷ 0.12} = $3,176

FV10 = Total FV 10 years from now = $10,928 + $3,176 = $14,104

FVB10 = Balance after $10,000 withdrawal  in year 10 = $14,104 - $10,000 = $4,104

c) FV in 45 years from now

n = 45 - 10 = 35 for both FVd and FVo

Using equations (1) and (2), we have:

FV of FVB10 = $4,104 * (1 + 0.12)^35 = $216,690

FVo = $500 * {[(1 + 0.12)^35 - 1] ÷ 0.12} = $215,832

FV45 = Total FV 45 years from now = $216,690 + $215,832 = $432,522

Conclusion

Therefore, you anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.

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3 years ago
Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the eco
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Answer:

1. Aggregate output demanded is $500 billion. True.

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Y = 40+0.9∗DI + 80 + 20

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Y = 50 + 0.9Y

0.1Y = 50

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2. Suppose the government decides to increase spending by $10 billion without raising taxes. Because the expenditure multiplier is 10. True.

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Marginal Propensity to Consume = 0.9 as per the Consumption function.

= 1/ ( 1 - 0.9)

= 10

2. b. this will increase the economy's aggregate output demanded by $100 billion. True.

Change in Aggregate output = Increase in government expenditure * expenditure multiplier

= 10 billion * 10

= $100 billion

3. ... In this case, the economy's aggregate output demanded is $500 billion . True.

Aggregate Demand (Y) = C + G + I

Y = 40+0.9∗DI + 80 + 20

Y = 40 + 0.9 ∗ (0.80∗Y) + 80 + 20

Y = 140 + 0.72Y

0.28Y = 140

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4. Given an income tax of 20%, the expenditure multiplier is approximately 3.6. True.

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= 0.9 * ( 0.80 * Y)

= 0.72Y.

Expenditure Multiplier = 1 / ( 1 - Marginal Propensity to Consume)

= 1/ ( 1 - 0.72)

= 3.57

= 3.6

4. b. Therefore, if the government decides to increase spending by $10 billion without raising tax rates, this would increase the economy's aggregate output demanded by approximately $36 billion. True.

Change in Aggregate output = Increase in government expenditure * expenditure multiplier

= 10 billion * 3.6

= $36 billion

5. A $10 billion increase in government purchases will have a larger effect on output under a fixed tax of $100 billion. True.

When the tax was fixed, an increase in Government purchases of $10 billion resulted in an increase in Aggregate output of $100 billion. When the Government switched to income taxes however, a $10 billion increase in Government spending led to a significantly lesser increase in Aggregate output of $36 billion.

4 0
3 years ago
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