Answer:
b.) to use money to make more money
Explanation:
<em>The correct reason for making investments would be </em><em>to use money to make more more money.</em>
<u>A financial investment represents the act of allocating money to a process or an item in order to reap profit or generate income in the short term, the long term, or both. </u>
An investment can be in the form of purchased goods or services that can later be sold at a higher amount. It can also be an item or service that will be yielding immediate income while preserving all or parts of its original value.
The money made on an investment is referred to as gains o returns.
<em>The correct option is </em><em>b</em><em>.</em>
Answer:
3. People don’t act as the Fed hopes.
a. The Fed can create conditions meant to encourage people to, for example, borrow more money. But if people are fearful of going into debt when their employment situation is uncertain, they may not respond to the Fed’s incentives.
- people make heir personal decisions based on what they expect to happen in heir future
1. The long run is different from the short run.
b. Although an expanded money supply can briefly stimulate economic growth, eventually the economy will return to the same level of productivity, just at higher prices for goods and wages.
- equilibrium is the key word regarding the long run
2. People adjust their expectations.
c. Fed actions are most effective when they come as a surprise. When people have figured out in advance what the Fed is going to do, the Fed’s actions don’t have as much impact.
- People's expectations can result in the failure of economic policies. For example, if households expect higher inflation, they might take loans or accelerate their purchases.
Answer:
a. XYZ's average selling price per handlebar last year was $30
b.
XYZ's total variable costs last year were $36,000
c. XYZ's average unit variable costs last year were $6
d. XYZ's average unit contribution margins ($) last year were $24
Explanation:
a.
XYZ's average selling price per handlebar last year = Total Sales/number of handlebars sold = $180,000/6,000 = $30
b.
XYZ's total variable costs last year = total costs - fixed costs = $100,000 - $64,000 = $36,000
c. XYZ's average unit variable costs last year = Total variable costs/number of handlebars = $36,000/6,000 = $6
d. XYZ's average unit contribution margins ($) last year = Selling price per handlebar - average unit variable costs = $30 - $6 = $24
Answer:
A. Increase retained earnings
Explanation:
The net income earned by a company in a particular year is always used for two purposes and treated in these ways- it is either paid out as dividends or retained in the business and transferred to the retained earning account or both. Thus, if out of $1.00 earnings per share, which is basically the net income earned per share, $0.75 is paid out as dividends per share, the remaining $0.25 is retained in the business and transferred to the retained earnings account.
Answer:
$52,745
Explanation:
The computation of annual saving in transportation cost is shown below:-
Cost of plane = Annual saving in transportation cost x PVAF (i%, n) + Residual value × PVF (i%, n)
306,840 = Annual saving in transportation cost × PVAF (8%, 6) + 100,000 (8%,6)
306,840 = Annual saving in transportation cost × 4.623 + 100,000 × 0.630
306,840 = Annual saving in transportation cost × 4.623 + 63,000
Annual saving in transportation cost = $306,840 - $63,000
= 243,840 ÷ 4.623
= $52,745
Therefore for computing the annual saving in transportation cost we simply applied the above formula.