Answer:
Manson will incur a loss of $10,300 by buying the part.
Explanation:
Purchases = 10,300 * $6 = $61,800
Variable cost = 10,300 * $5 = $51,500
Fixed cost = 10,300 * $3 = $30,900
Analysis:
<u>Details Make ($) Buy ($) Net ($)
</u>
Purchase 0 61,800 61,800
Variable 51,500 0 51,500
Fixed 30,900 30,900 <u> 0 </u>
Loss <u> 10,300 </u>
Therefore, Manson will incur a loss of $10,300 by buying the part.
This phenomenon best illustrates how a progressive income-tax system serves as an automatic stabilizer for the economy.
<h3>What is an automatic stabilizer?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . Examples include progressive tax and transfer payments. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
In an expansion, progressive tax increases the tax paid and this reduces disposable income. In a recession, tax paid is reduced and this increases disposable income
Here are the options:
increases crowding out in the economy
decreases real interest rates in the economy
offsets the timing problem for fiscal policy
Serves as an automatic stabiler for the economy
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Answer:
center of gravity.
Explanation:
The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's center of gravity.
Generally, the center of gravity of a company is usually the point at which it started business. The center of gravity of a company defines its strengths, success, achievement and dominant operations.
For any successful business, there is always a center of gravity. This is the point or stage where all of the strategic decisions, greatest expertise, risks management and capabilities lie.
<em>Hence, should there be an error, disagreement or disarray at the center of gravity, then the company is headed for losses and bankruptcy. </em>
Answer:
First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.
= Annuity * Present value interest factor of annuity due, 5 years, 7%.
= 37,400 * 4.3872
= $164,081
Date Account Details Debit Credit
Dec. 31, 2019 Lease Receivable $164,081
Cost of goods sold $104,800
Sales $164,081
Inventory $104,800
Date Account Details Debit Credit
Dec. 31, 2019 Cash $37,400
Lease Receivable $37,400
