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GarryVolchara [31]
3 years ago
7

The old Soviet Union devoted enormous resources exclusively to increasing its physical capital​ stock, and yet eventually the in

crease in the​ country's real GDP came to an end. Based on the discussion in the​ chapter, explain why this was inevitable.
Business
1 answer:
GrogVix [38]3 years ago
5 0

Answer:

In the absence of technological​ innovation, massive capital investments yielded diminishing marginal returns.

Explanation:

The economy of the Soviet Union was a command economy where the government decided how resources would be allocated. The four factors of production are land, labor, capital and entrepreneurship. In a command economy, entrepreneurship is virtually nonexistent, so that leaves three factors: land, labor and capital.

The government allocated a lot of resources into increasing the capital factor, but capital factor will always yield diminishing marginal returns unless new technological innovations are developed. During many years, the Soviet Union was the technological leader of the world, but as time passed and with a complete absence of entrepreneurship, technological advances halted.

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Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following ana
Nookie1986 [14]

Answer:

a. The 2 contracts should be combined.

b. $123,000 for Contract A

$82,000 for Contract B

c. Revenue should be recognized when control of goods has transferred to the customer.

Explanation:

Part a:

Answer: Yes. The 2 contracts should be combined.

Reasoning:

5-step revenue recognition model indicates identification of contracts with customer in the first step, identification of performance obligations of the contract in the second step, transaction price determination in the third step, allocation of transaction price to the performance obligations to the fourth step and recognition of revenue as the performance obligations in the fifth step. Therefore, two contracts should be combined.

Part b:

Calculate the amount of revenue should P associate with each of the contracts.

There are two performance obligations:

Goods from contract A ($120,000 + ($5000 x 60%)) = $123000

Goods from contract B ($80,000 + ($5000 x 40%)) = $82000

Reasoning: It is given that the stand-alone prices for Contract A is $120,000 and Contract B is $80,000. Contract price of Contract A is $125,000. Thus, the additional $5,000 should be split between the 2 contracts. Hence, the performance obligations for goods from contract A is $123,000 and goods from contract B is $82,000.

Part C:

Revenue should be recognized when control of goods has transferred to the customer.

Reasoning:

Performance obligation is satisfied when transfer the good or service to the customer. Recognize revenue when the performance obligation is satisfied is the fifth step of the 5-step revenue recognition model. Hence, revenue should be recognized when control of goods has transferred to the customer.

7 0
3 years ago
A company's fixed operating costs are $420,000, its variable costs are $3.20 per unit, and the product's sales price is $4.65. W
Hatshy [7]

Answer: The volume of sales that will result in a break-even point is 289,655 units

Explanation: For any organization or company to break-even means its total costs is just the same as its total revenue. This means no profit, and no loss either. Or better still, profit/loss equals zero.

The equation to determine the profit or otherwise of an organization is given as Revenue minus Cost. That is, the sales figure should exceed the cost of production, and the excess would be the profit. If on the other hand the cost of production exceeds the sales figure, then the equation would result in a negative figure which simply means a loss has been recorded.

In the question above, the costs have been given as;

Fixed cost = 420000

Variable cost = 3.2y

Total cost = 420000 + 3.2y

Where y is the number of units produced.

Also the revenue has been given as 4.65y

That is, sales price multiplied by number of units produced/sold

The profit is given as revenue minus cost while the break-even point is given as revenue equals cost, that is;

420000 + 3.2y = 4.65y

Collect like terms and you have;

420000 = 4.65y - 3.2y

420000 = 1.45y

Divide both sides by 1.45

289655.172 = y

y ≈ 289,655

Therefore the sales volume that will result in a break even point is 289,655 units

7 0
3 years ago
Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc
Sonja [21]

The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

= 8.55%

Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

= 15.11%

Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.

Read more about Expected return

<em>brainly.com/question/25821437</em>

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3 0
2 years ago
Why is it important to write something in the subject line of emails? O A. Because most email programs won't send emails without
nordsb [41]

The correct answer is D.

If you don't include something in the subject line of an email the recipient might delete your message or send it to the spam folder. The whole purpose of a subject line is to include a compelling reason for the recipient to open the email and read it. If there is nothing in the subject line then the recipient will have no reason to open the email and might just automatically delete it of forward it to spam.

3 0
3 years ago
Read 2 more answers
The price level in the country is determined by ______ and _______.
Usimov [2.4K]
The answers are supply and demand.
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3 years ago
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