Answer:
d. overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items
Explanation:
The CPI tends to overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items
Answer:
Option A (an economic recession in the U.S) would be the correct choice.
Explanation:
- A recession seems to be an economic and financial term of knowledge and skills to a substantial reduction in the total financial outlook of the specified location.
- Usually, as expressed by GDP throughout combination with monthly metrics such as an uptick in unemployment, this one has been recognized as two successive quarters of economic downturn.
Some other three options aren't connected to the example described. But the response above is the right one.
Answer:
a. Beck Inc. = 5.00 and Bryant Inc. = 2.50
b. Beck Inc. = $100,000 and 100% : Bryant Inc. = $150,000 and 50 %
c. True.
Explanation:
Degree of Operating Leverage shows, the times Earnings Before Interest and Tax (EBIT) would change as a result of a change in Sales contribution.
Degree of Operating Leverage = Contribution ÷ EBIT
Thus,
Beck Inc = $500,000 ÷ $100,000
= 5.00
Bryant Inc. = $750,000 ÷ $300,000
= 2.50
<em>If Sales increased by 20% the effects on Incomes would be :</em>
Beck Inc = 20% × 5.00
= 100%
= $100,000 × 100%
= $100,000
Bryant Inc.= 20% × 2.50
= 50 %
= $300,000 × 50 %
= $150,000
Answer:
Results are below.
Explanation:
<u>To calculate the future value, we need to use the following formula:</u>
FV= PV*(1+i)^n
a) i= 0.04 annually compounded
n= 5
PV= $625
FV= 625*(1.04^5)
FV= $760.41
b) i= 0.04/2 = 0.02 semiannually compounded
n= 5*2= 10
PV= $625
FV= 625*(1.02^10)
FV= $761.87
c) i= 0.04/4 = 0.01 quarterly compounded
n= 5*4= 20
PV= $625
FV= 625*(1.01^20)
FV= $762.62
d) i= 0.04/12 = 0.0033 monthly compounded
n= 5*12= 60
PV= $625
FV= 625*(1.003333^60)
FV= $763.11
Answer: Brand position.
Brand position can be explained as the position or standing of the brand as compared to other companies or its peers. It shows the level of the brand and its credibility. Brand positioning is creating the image of brand in the mind of the consumers.
