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2 years ago

Price serves the function of _____ for goods, services, and financial resources.

1 answer:

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Allocator- Price thus serves the function of allocator. First, it allocates goods and services among those who are willing and able to buy them. (As we noted in Chapter 1, the answer to the economic question “For whom to produce?” depends primarily on prices.) Second, price allocates financial resources (sales revenue) among producers according to how well they satisfy customers’ needs. Third, price helps customers to allocate their own financial resources among various want-satisfying products.

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Find the present values of the following cash flow streams. The appropriate interest rate is 7%. (Hint: It is fairly easy to wor

levacccp [35]

Answer:

Present value Discount rate 7% Discount rate 0%

Cash stream A $1,217.11 $1,500

Cash stream B $1,239.27 $1,500

Explanation:

Since there is two cash stream i.e A and B and we have to find out the present value of each cash stream through a discount rate of 7% and 0%

The workings are shown in the attached spreadsheet

Plus the discount factor is computed by

= 1 ÷ (1 + rate) ^ years

For Year 1 = 1 ÷ 1.07^1 = 0.9345794393

For Year 2 = 1 ÷ 1.07^2 = 0.8734387283

and so on

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2 years ago

Fois Company has two divisions, Division X and Division Y. Division X has a production capacity of 5,000 units of a particular p

kogti [31]

Answer:

Lost contribution per unit = $56 per unit

Explanation:

The Division X is operating at less than full capacity, hence it has excess capacity of 600 units i.e (5000- 4,400)

This implies that it can only produce to meet the external and a portion of Division Y demand

Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.

Therefore, the minimum transfer price

minimum transfer price= Variable cost + a lost contribution from internal supply

The lost contribution represent the amount Division X would have made had sold the units to external buyers

Lost contribution per unit = $56 per unit

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2 years ago

Many demographers predict that the United States will have zero population growth in the twenty-first century, in contrast to av

ANTONII [103]

Answer and Explanation:

Different things being constant, a slowdown in population growth will lead to an increase in the availability of capital per worker and output per worker.

At the steady state, output per worker will grow at the rate of g while. Thus, steady state per person output growth will be same, however total output will increase at the rate n+g.

In case of transition between steady states, during the transition phase, output per worker will grow at a rate greater than g. Overtime in the long run with a fall in population growth, total output will fall while output per worker will increase.

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2 years ago

A travel company sells tours in Costa Rica on its website. Instead of designing the website themselves, the company hired an out

Georgia [21]

This would be considered a collaborative partnership since they got help from another software team

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2 years ago

g Dave's Duds reported cost of goods sold of $2,000,000 this year. The inventory account increased by $200,000 during the year t

FrozenT [24]

Answer:

$2,200,000

Explanation:

The movements in the inventory account is as a result of purchases, sales and writeoffs if any. These are the events that bring about a change between the opening and closing balances.

Given;

cost of goods sold = $2,000,000

Increase in inventory = $200,000 (This is same as closing balance minus opening balance)

Ending balance = $400,000

Thus, opening balance = $400,000 - $200,000

= $200,000

Let the cost of merchandise that Dave's purchased during the year be N

$200,000 + N - $2,000,000 = $400,000

N = $400,000 + $2,000,000 - $200,000

N = $2,200,000

The cost of merchandise that Dave's purchased during the year is $2,200,000

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2 years ago