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3 years ago

Expansionary fiscal policies are designed to

1 answer:

8 0

A. Boost the economy Expansionary policies increase the money in supply to encourage spending, boost economic growth and counteract inflation.

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Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the c

Ipatiy [6.2K]

Answer:

Results are below.

Explanation:

First, we need to calculate the break-even point in units and sales dollars:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 354,000 / (175 - 116)

Break-even point in units= 6,000

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 354,000 / (59 / 175)

Break-even point (dollars)= $1,050,000

Now, the margin of safety and margin of safety rate:

Margin of safety= (current sales level - break-even point)

Margin of safety= (10,000*175) - 1,050,000

Margin of safety= $700,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 700,000 / 1,750,000

Margin of safety ratio= 0.4= 40%

5 0

3 years ago

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $40,000 in cash and giving a short-term n

Norma-Jean [14]

Answer:

See below

Explanation:

The cost of land to be included in the balance sheet would not only include the price paid to acquire the land but also include cost or revenue received in the process while also include all activities required to bring the land to the stage in which it may be ready for usage.

With regards to the foregoing, the cost of land to be included in the balance is is

= Cash paid + short term note + legal fee + delinquent taxes + Fees paid to remove old building from the land - sales of materials salvaged from demolition of the building

= $40,000 + $306,000 + $1,665 + $13,100 + $22,500 - $5,200

= $378,065

Therefore, cost of land to be included in the balance sheet is $378,065

3 0

3 years ago

Willis Company made a $280,000 investment in new machinery. Assuming the company's margin is 7%, what income will be earned if t

uysha [10]

Answer:

the income earned is $39,900

Explanation:

The computation of the income earned is shown below:

As we know that

Margin (%) = Income earned ÷ Sales revenue

Therefore,

Income earned = Additional sales Margin percentage

= $570,000 × 7%

= $39,900

hence, the income earned is $39,900

We simply applied the above formula so that the correct value could come

And, the same is to be considered

8 0

3 years ago

At a price of $15 each, marta buys 4 books per month. when the price increases to $20, marta buys 3 books per month. luz says th

saveliy_v [14]

No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same. It is true that As a price for a product increases, the demand for that product will be most likely to decrease because consumers have to make more sacrifice without any additional income.
But, if you pay attention to the case above, you can see the total value of demand that marta has is still the same, which is $ 60

6 0

3 years ago

Please help me to solve this.

zvonat [6]

Answer:

its b

Explanation:

8 0

3 years ago