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myrzilka [38]
4 years ago
9

Suppose Rosa is a sports fan and buys only baseball caps. Rosa deposits $3,000 in a bank account that pays an annual nominal int

erest rate of 10%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a baseball cap is priced at $15.00. Initially, the purchasing power of Rosa's $3,000 deposit is ___ baseball caps.
Business
1 answer:
frutty [35]4 years ago
8 0

Answer:

Purchasing power of Rosa's $3,000 deposit is <u>200</u> baseball caps.

Explanation:

Purchasing Power = Money / Price

Eg : If Rs 100 is available, Price level = Rs 10

Purchasing power = 100/10 = 10

Similarly , Purchasing power of $3000 deposit with price level $15 is :-

3000/15 = 20 Baseball caps

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Break-even analysis for a service company Sprint Nextel is one of the largest digital wireless service providers in the United S
Tema [17]

Answer:

Explanation:

Variable cost = 20,841*70%+9,765*30% = 17,518.20

Fixed cost = 20,841+9,765+2,239   -17,518.20 = 15,326.8

Contribution margin per unit = (Revenue - Variable cost)/subscribers =(35,345-17,518.20)/32.5 = 548.5

a) Break even unit = Fixed cost/Contribution margin = 15,326.8/548.5 = 27.9 Million

b) Revenue per account = (Total variable cost+Total fixed cost)/subscribers = (17,518.20+15,326.8)/32.5 = $1010.61

8 0
4 years ago
One year ago, you invested $3,250.00. Today, it is worth $4,000.00. What rate of interest did you earn
mojhsa [17]

Answer:

23.08%

Explanation:

Future value =Present value*(1+r)^n

$4,000 = $3,250*(1+R)^1

$4,000 = $3,250*(1+R)

1+R = $4,000/$3,250

1+R = 1.230769

R = 1.230769 - 1

R = 0.230769

R = 23.08%

8 0
3 years ago
Amy transfers property with a tax basis of $1,755 and a fair market value of $1,085 to a corporation in exchange for stock with
Anton [14]

$175 is Amy's tax basis in the stock received in the exchange

Solution:

The principle of taxes of the owner is equal in the exchanged land,

when the company assumes responsibility.  

If Amy is to sell the stock at $630,

the loss is (630-455) $175,

equivalent to $175, which is the amount of a late loss.

7 0
3 years ago
Riddell Company manufactures one type of basketball. Each basketball is sold for $55 and the individual contribution margin is $
4vir4ik [10]

Answer:

D. Step cost

Explanation:

Riddell Company manufactures one type of basketball. Each basketball is sold for $55 and the individual contribution margin is $27. Total fixed costs are $185,000 annually. Included in fixed costs are two production supervisor’s salaries of $96,000. Management estimates that production supervisors can effectively oversee the production of 6,000 basketballs. After that, an additional production supervisor needs to be hired.

Production supervisor’s salaries are a step cost which are expenses that are constant for a given level of activity and does not change steadily with changes in activity volume, but rather at discrete points.

3 0
3 years ago
During the past month, pinnacle corporation purchased a new delivery truck, sold an empty warehouse to another company, met with
horsena [70]

Answer:

met with an existing client to discuss possible extension of a sales contract

Explanation:

The event above would not be recorded in pinnacle's accounting records due to the fact that it was just a conversation and not registered or recorded somehow.

4 0
4 years ago
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