Answer:
9.39%
Explanation:
Base on the scenario been described in the question, the effective cost of refinancing is 9.39%
What would likely happen after the news spread is that there will be a decrease in supply for mp3 players. It is because mp3 players are considered to be loud music for it is need to be plugged on the ears for better sound and hearing in listening to music. If it is claimed that it increases hearing loss, people will be alarmed and think that the mp3 players will contribute to this problem, giving the effect of other people not buying it, decreasing the supply.
Answer:
1. 4,000 bags
2. 1,000
3. 180 runs
4. 18,000
5. $165,600
Explanation:
1.
Q = 
= 4,000 bags
2.
Maximum Inventory = Q* (1 - D/N/P)
4,000*0.25
= 1,000
3.
Annual demand / Bags of coffee roasted per day
36,000 bags / 200 bags
= 180 runs
4.
Annual average inventory
36,000/2
=18,000
5.
Production Cost $200 * 180 runs = $36,000
Carrying Cost $3.6 * 36,000 bags = $129,600
Total Cost = $36,000 + $129,600
= $165,600
Answer:
$0
Explanation:
Variance overhead efficiency variance = (Standard hours - Actual hours) * Standard variable overhead rate
= (6,000 hours * $1) - 6,000 hours * $5
= (6,000 hours - 6,000 hours) * $5
= 0 * $5
= $0
Thus, the Variance overhead efficiency variance = $0
Answer:
To reach full employment (reduce inflationary gap), government spending must fall by $8 million.
Explanation:
Multiplier = 1 / (1 - mpc) = 1 / (1 - 0.8) = 5
Output gap = Current GDP - Potential GDP = $100 - $60 = $40 million
Amount of change in government expenditure needed = Output gap / mpc = $40 / 5 = $8 million
Since the Potential GDP is less than the Current GDP, this implies that the government spending must fall by $8 million to reach full employment.
Therefore, to reach full employment (reduce inflationary gap), government spending must fall by $8 million.
