Health claims made in product advertisement must be backed by a . Local authorities b. Scientific evidence c . Endorsement

If businesses are producing at capacity, and the nation is experiencing almost full employment (a very low rate of unemployment

Ivanshal [37]

Answer:

The correct answer to the following question is D) interest rates would be increased by the government when there is almost full employment in the economy.

Explanation:

When in the economy, business are producing close to productivity and in the nation there is almost full employment , then it can be said that the economy is booming . Which means there is good amount of money supply in the economy and people are spending robustly and that means the demand is high , which ultimately tells that the prices of goods and services are high.

So to cut the prices, government will increase the interest rate which will lead to the increase in cost of borrowing, and that will cause decrease in money supply and demand will ultimately fall, which leads to decrease in prices of goods and services.

3 0

3 years ago

Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales

djverab [1.8K]

Answer:

According to the flexible budget, income from operations will increase from $557,000 to $915,000 if the units sold increase from 15,000 to 18,000 during 2017.

Explanation:

sales revenue should increase to $4,050,000

cost of goods sold should increase to: ($2,237,000)

direct materials $1,260,000
direct labor $180,000
machinery repairs $54,000
depreciation (fixed) $315,000
utilities $228,000
management salaries $200,000

gross profit $1,813,000

S&A expenses increase to: ($898,000)

packaging $72,000
shipping $108,000
sales salaries (fixed) $260,000
advertising expense (fixed) $127,000
adm. salaries (fixed) $241,000
entertainment (fixed) $90,000

income from operations $915,000

4 0

3 years ago

1) Instead of polling all faculty members in the business department, Michael wants to simply use a list of testing methodologie

Hitman42 [59]

Answer:

The correct answer is: satisficing.

Explanation:

Satisficing is a term coined by American economist Herbert A. Simon (1916-2001) that is a blend of the terms "satisfying" and "sufficing" and that combined Simon used to illustrate that when we have to make a decision we don't spend much time weighing all the possible options, rather we choose the first reasonable option available.

6 0

3 years ago

Preparing Entries Across Two Periods Hatcher Company closes its accounts on December 31 each year. On December 31, 2018, Hatcher

padilas [110]

Answer and Explanation:

The journal entries are shown below

On Dec. 31, 2018

Interest receivable $600

To Interest income $600

(Being accrued interest earned is recorded)

On Dec. 31, 2018

Interest income $2,400

To Retained earnings $2,400

(Being the closing of interest income is recorded)

On Jan. 31, 2019

Cash $900

To Interest receivable $600

To Interest income $300

(Being cash receipt of interest is recorded)

3 0

2 years ago

The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company estimates the p

Vika [28.1K]

Answer:

Investing today is a better option because it has a better NPV of $2.3398 million

Explanation:

Given data :

For Today's Investment

Initial capital investment = $4 million

positive cash flow = $2 million

period of cash flow = 4 years

project cost of capital = 10%

To get the value of This option we have to determine the NPV of this option

NPV = PMT * $[\frac{1-(1+r)^-4}{r} ] - initial cash flow$ ----------- (1)

PMT = $2 million

r = 10%

initial cash flow = $4 million

Equation 1 becomes

NPV = (2 * 3.1699 ) - 4

= $6.3398 - $4 = $2.3398 million

For later investment ( 2 years )

initial capital investment = $5 million

90% chance of positive cash flow = $2.1 million

10% chance of positive cash flow = $1.1 million

project cost of capital = 10%

NPV value for a cash flow of $1.1 million

NPV = PMT * $[\frac{1-(1+r)^-4}{r} ] - initial cash flow$

PMT = $1.1 million

initial cash flow = $5 million

r = 10%

Hence NPV = ($1.1 * 3.1699 ) - $5 million

= $3.48689 - $5 million

= - $1.51311

therefore the present NPV = - $1.51311 / 1.21 = -$1.25 million ( therefore no investment will be made )

NPV value for a cash flow of $2.1 million

NPV = PMT * $[\frac{1-(1+r)^-4}{r} ] - initial cash flow$

PMT = $2.1 million

initial cash flow = $5 million

r = 10%

hence NPV = ($2.1 * 3.1699 ) - $5 million

= $6.65679 - $5

= $1.65679

therefore the present NPV = $ 1.65679 / 1.21 = $1.369 million

The Expected NPV value of later investment ( after 2 years )

= $0 * 10% + $1.369 * 90%

= $1.2321 million

4 0

3 years ago