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Paladinen [302]
3 years ago
5

Suppose a gold miner finds a gold nugget and sells the nugget to a mining company for $600. The mining company melts down the go

ld, purifies it, and sells it to a jewelry maker for $1,000. The jewelry maker fashions the gold into a necklace that it sells to a department store for $1,600. Finally, the department store sells the necklace to a customer for $2,200.
Required:

How much has GDP increased as a result of these transactions?
Business
1 answer:
KIM [24]3 years ago
8 0

Answer:

GDP grew by $2,200

Explanation:

G<em>ross domestic product (GDP) which is the total market value of all the final goods and services produced in a country over a given period of time. The GDP can be calculated using the value added approach.</em>

Here the GPD figure is ascertained by summing the amount of additional value created by each factor of production at each stage of the production process of the final product.

<em>Only the values added are summed, the cost of the inputs or intermediate goods are not included</em>

<em>In this question, the final value of $2200 represents the amount by which the GDP has increased in the period. This also can be verified using the value-added approach as follows</em>

                                                   Value added($)

Gold miner   -                                   600

Mining company : 1000 -600 =      400

Jewerlry maker  :1600 - 1000 =      600

Departmental store :2200 -1600 = <u>600</u>

Total value added                           <u>2,200</u>

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The price of borrowing money is reflected in the interest rate on a credit card. We utilize the annual percentage rate for this (APR). On the majority of credit cards, you can avoid paying interest on purchases if you pay your balance in full each month by the due date.

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4 0
1 year ago
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7 0
3 years ago
On June 30, 2011, Cole Inc., exchanged 3,000 shares of Stone Corp. $30 par value common stock for a patent owned by Gore Co. The
11Alexandr11 [23.1K]

Answer:

$135000

Explanation:

Cole should record the patent at $135000. The intangible asset is recorded at the price at which it was purchased. Net carrying value of $160000 in the books of seller is not useful.

At the time of purchase of intangible asset, the fair value of stone stock exchanged was $45.

So the patent cost is =

3000 shares × $45 per share = $135000.

Cole should record the patent at this value.

8 0
3 years ago
12-3. (Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 300,000 units next year. Fixed cos
aev [14]

Answer:

Selling price= $5.08

Explanation:

Giving the following information:

Number of units= 300,000

Fixed costs= $350,000

Desired profit= $250,000

Variable cost rate= 0.65

<u>First, we need to calculate the unitary contribution margin using the break-even point formula:</u>

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

300,000 = (350,000 + 250,000) /  contribution margin per unit

300,000 contribution margin per unit = 600,000

contribution margin per unit= 600,000/300,000

contribution margin per unit= $2

<u>If the variable cost rate is 0.65, then:</u>

Unitary varaible cost= 2/0.65= $3.08

Selling price= contribution margin per unit - unitary varaible cost

Selling price= 2 - (-3.08)

Selling price= $5.08

5 0
2 years ago
Parido Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning
Ivan

Answer:

Allocated MOH= $26,372

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total fixed overhead= 48,200

Total variable overhead= (1.9*8,000) + (3*2,000)= $21,200

Predetermined manufacturing overhead rate= (48,200 + 21,200) / 10,000

Predetermined manufacturing overhead rate= $6.94 per machine hour

<u>Now, we can allocate overhead to Job H:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 6.94*(2,600 + 1,200)

Allocated MOH= $26,372

8 0
3 years ago
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