Based on the information given the real rate of interest is:2%.
<h3>Real rate of interest</h3>
Using this formula
Real rate of interest=Nominal interest rate-Inflation rate-
Where:
Inflation rate=5%
Nominal interest rate=7%
Let plug in the formula
Real rate of interest=7%-5%
Real rate of interest=2%
Inconclusion the real rate of interest is:2%.
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Answer:
they should spend $2 in promotions
Explanation:
Baldwin's Traditional product Basket will lose 1/3 of its 2019 awareness (72%), which will result in only a 48% during 2020. If the product manager wishes to end 2020 with a 92% awareness, they must spend in promotion enough money to raise awareness by 44%.
- The first $1 million spent in promotions will increase awareness by 26%, to a total of 74% (= 48% + 26%).
- The second $1 million spent in promotions will increase awareness by 18%, to a total of 92% (= 74% + 18%).
The one that has limited liability for its owners, but passes income through to its investors and avoids double taxation is option C. S Corporation. Read below about S Corporation.
<h3>What is S Corporation?</h3>
A variation on the standard corporation model is the S corporation. An S corporation passes its income through to its owners, so that the entity itself does not pay income taxes. The owners report the income on their tax returns, thereby avoiding the double taxation that arises in a regular C corporation.
Therefore, the correct answer is as given above
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The complete question goes thus:
Which of the following has limited liability for its owners, but passes income through to its investors and avoids double taxation
A. C Corporation
B. Partnership
C. S Corporation
D. Types of Business Entities
Answer:
Results are below.
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,634,000 / 86,000
Predetermined manufacturing overhead rate= $19 per direct labor hour
<u>Now, we can allocate overhead to each unitary product:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Xactive= 19*1.4= $26.6
Pathbreaker= 19*1= $19
<u>Finally, the unitary cost of each product:</u>
Xactive= 63.8 + 17.2 + 26.6= $107.6
Pathbreaker= 50 + 12 + 19= $81