All categories

3 years ago

How did speculative investing weaken the stability of the stock market?

1 answer:

7 0

Heavy speculation is a bad idea in any market since it has a tendency to inflate prices to unrealistic levels. That is basically what many investors prior to the Great Depression did when they thought the market would keep going higher and higher. They borrowed money, sold their houses, etc.. to buy into the stock market thanks to that kind of speculation without even considering the underlying reasons for why the market is there in the first place.

You might be interested in

The following costs were incurred in September:

aleksley [76]

Answer:

Option (d) is correct.

Explanation:

Given that,

Direct materials = $44,200

Direct labor = $31,800

Manufacturing overhead = $25,200

Selling expenses = $22,100

Administrative expenses = $37,100

Conversion cost:

= Direct labor + Manufacturing overhead

= $31,800 +$25,200

= $57,000

Therefore, the conversion costs during the month totaled $57,000.

5 0

4 years ago

Kaplan, Inc. produces flash drives for computers, which it sells for $27 each. The variable cost to make each flash drive is $13

horsena [70]

Answer:

Contribution per unit

= Selling price - Variable cost per unit

= $27 -$13

= $14

Contribution margin ratio

= Contribution per unit

selling price

= $14

$27

= 0.518518518

Break-even point in dollars

= $1,400

0.518518518

= $2,700

Explanation:

Break-even point in dollars equals fixed cost divided by contribution margin ratio. Contribution margin ratio is equal to contribution per unit divided by selling price. Contribution per unit is selling price minus variable cost per unit.

4 0

4 years ago

Describe the relationship between supply and demand in your own words

Tanzania [10]

Answer:

Supply: In economic terms, supply is the amount of resources or products that are provided by the company or an organization to the public or the targeted marketed. For example a toy making company would be providing toys to people with children, who are in need of toys.

Demand: It is an economic concept that states the need of a product or service. People or organizations have needs which are fulfilled by products and services. For example, the need for toys of people with children is known to be their demand which is then fulfilled by companies.

5 0

3 years ago

A state charges a 7% sales tax on non-grocery items.

zvonat [6]

Answer:

$8.75

Explanation:

The sales tax is on non-grocery is 7%

Sales tax on an item costing $125 will be

=7% of $125

=7/100 x $125

=0.07 x $125

=$8.75

7 0

3 years ago

The Model Company is to begin operations in April. It has budgeted April sales of $70,000, May sales of $74,000, June sales of $

iVinArrow [24]

Answer:

Explanation:

Computation of cash collection for July= $ 75,352

Revised Sales budgets as a result of change in policy

Cash Credit

Sales-April $ 70,000 *(100 % -7% ) = $ 65,100 $ 9,765 $ 55,335

Sales -May $ 74,000 *(100 % -7 %) = $ 68,820: $ 10.323 $ 58,497

Sales -Jun $ 80,000 *(100 % -7 %) = $ 74,400 $ 11,160 $ 63,240

Sales -Jul $ 82,000 *(100 % -7 %) = $ 76,260 $ 11,439 $ 64,821

Collections for the month of July

From July cash sales $ 11,439

From April sales : 3 % of credit sales of April $ 1,755

From May sales : 16 % of credit sales of May $ 10,118

From June sales : 80% of credit sales of June $ 51,857

Additional 1.5 % on amount collected in the second month

after sales ( $ 1,755 + $ 10,118) * 1.5 % ( $ 26 + $ 157) $ 193

Total collections for July $ 75,352

5 0

3 years ago