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3 years ago

Which factor is the least affected by interest rate changes?

Business

1 answer:

ehidna [41]3 years ago

8 0

Answer:

Option C. GNP

Explanation:

The business cost and the price of the product is of-course get affected by the increase or decrease in the interest rate. So both of these options are the answer to the question.

The GNP measures the value of the products and services that is owned by the country's residents which also includes the production output in warehouse, individual product holdings, etc. for the year. So GNP is least affected by the interest rate changes.

Though the value of the major investments in the foreign country can not be affected easily. Other factors that also effect the earnings from the abroad are profitability, dividend policy, taxes, etc that affects the earnings from the foreign countries. However the small investments would definitely be affected by the investments made in the foreign stock exchange with the change in the interest rate in the home country. So this change in the interest rate would definitely affect the earnings coming from abroad as the investment in foreign countries has been lessened. So can have considerable affect on the earnings coming from abroad.

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Consider a large number of countries around the world. There is a positive correlation between the number of cell phones per per

Elena-2011 [213]

Answer:

Option B is correct one.

Explanation:

No, the positive correlation just shows that richer countries have both more nintendos and higher life expectancies it makes no sense to calculate correlation between these two variables.

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3 years ago

Hotel companies are increasingly opting for ________ because considerably less capital is tied up in managing as compared to own

Goshia [24]

The answer is "management companies".
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4 0

3 years ago

Read 2 more answers

Assume that you borrowed money from your grandmother to attend college. Your deal with her is that you will pay her $1,000 per y

Fudgin [204]

Answer:

PV= $7,721.73

Explanation:

Giving the following information:

Your deal with her is that you will pay her $1,000 per year for the next ten years with the first payment occurring at the end of this year. If your discount rate is 5%.

To calculate the present value we need to use the following formula:

NPV= ∑[Cf/(1+i)^n]

For example:

Year 4= 1,000/1.05^4 822.70

Year 8= 1,000/1.05^8= 676.84

NPV= $7,721.73

3 0

3 years ago

(A) Prepare an individual income tax return.George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 20

tatuchka [14]

Answer:

Explanation:

prepare from 1040 to disclose Income and respective Tax

FORM 1040

Amount ($)

Salary Received 80,000

Business Income- Wn1) 2,789

Total Income 82,789

Less - Itemized wise Deduction-Wn2 21,405

Total Income 61,384

Standard deduction 11,900

Total Taxable Income 49,484

tax

From 0-$17400 10% 1,740

From $17400-$70700 15% 4,813

Total Tax Liability 6,553

Schedule A

wn2

Real Estate Tax 2,500

Interest on Mortgage 4,500

Gifts to Charity 3,500

Unreimbursed Job Expeses(FORM 2106) 10,905

Total Itemized wise Deduction 21,405

wn1

Income from rubbery toy boat 15,000

Less cost

Cost of suppies 5000

Business phone call 3500

Cost of suppies 500

Total 9000

Total Business Income 6,000

Less- FORM 8829 Expeses 3211

Business Income- 2,789

FORM 2106

Car expenses 9990

Travelling Expense 665

Meal Expenses 5500

Total 10655 5500

Less Reimbursement 5000

Total 10655 500

Expenses Allowed 10655 250

Total 10905

FORM 8829

25% is used for Business

Income from buisness 6000

Mortgage Interest' -1125

Reat estate tax -625

Utility Bills -500

Depreciation -961

Total Business Income 2789

Calculate depreciation

Lesser of fair market value or adjusted cost 1,70,000

Less - value of Land -20,000

Total 1,50,000

Basis of building 37,500

rate of depreciation 2.56%

960

3 0

3 years ago

anufacturing's cost accountant has provided you with the following information for January operations. Direct materials $ 31 per

ipn [44]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Direct materials $ 31 per unit

Fixed manufacturing overhead costs $ 225,000

Sales price $ 205 per unit

Variable manufacturing overhead $20 per unit

Direct labor $ 34 per unit

Fixed marketing and administrative costs $ 200,000

Units produced and sold 6,000

Variable marketing and administrative costs $ 8

A) Total variable cost per unit= direct material + direct labor + variable overhead + variable marketing and administrative

Total variable cost per unit= 31 + 34 + 20 + 8= $93

B) Variable manufacturing cost= direct material + direct labor + variable overhead= 31 + 34 + 20= $85

C) Total absorption cost per unit= direct material + direct labor + total overhead= 31 + 34 + (225,000/6,000 + 20)= $122.5

D) Total unitary cost= total cost/ Q

Total unitary cost= total variable cost + (fixed overhead + Fixed marketing and administrative costs) /Q= 93 + (225,000 + 200,000)/6,000= $163.83

E) Profit margin= selling price - total unitary cost= 205 - 163.83= $41.17

F) Gross margin= selling price - unitary cost(absorption)

Gross margin= 205 - 122.5= $82.5

G) Contribution margin per unit= selling price - unitary variable cost

CM per unit= 205 - 85= $120

8 0

4 years ago