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Nimfa-mama [501]
3 years ago
15

Production Budget

Business
1 answer:
9966 [12]3 years ago
5 0

Answer and Explanation:

The preparation of production budget is shown below:-

                      Weightless Inc

                    Production Budget

         For the month ending October 31

                             Units Bath Scale            Units Gym Scale

Expected Units to

be sold                       150,000                         90,000

Desired Inventory,

October 31                  12,500                           8,000

Total                          162,500                           98,000

Less: Estimated Inventory,

October 1                   -18,000                           -10,000

Total Units to be

produced                  144,500                           88,000

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Answer:E. The income tax rate in Zerbia rises with the level of taxable income

Explanation:

When the tax rate rise in proportion to the income tax it means a low income tax will bring in lower income and this fall contrary to the target achievement of increasing income by lowering the tax rate.

An inequality in salary will not adversary affect a reduction in Income tax to boost the economy as all workers will have more disposable income compare to the period before income tax rate. deduction.

An increase in propensity to save in an economic where income tax is reduced will help to increase savings and subsequently investment.

With a low wage for skilled workers the reduced income tax rate will help to increase disposable income.

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3 years ago
If inspections and licenses are required, then the role of government being represented is a ______.
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Answer:

"Supervisory body" is the right approach.

Explanation:

  • A case investigator who usually reviews lawsuits regarding businesses and governments is considered a Supervisory body.
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7 0
3 years ago
Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has six year
ella [17]

Answer:

a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave?

  • Bond Sam's price will change by -9.12%
  • Bond Dave's price will change by -18.05%

b. If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave?

  • Bond Sam's price will change by 10.26%
  • Bond Dave's price will change by 24.35%

Explanation:

<u>Bond Sam</u>

9% / 2 = 4.5% semiannual payments

6 years to maturity = 12 payments

present value = future value = 1000

  • PV of face value = 1,000 / (1 + 4.5%)¹² = $589.66
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new market price = $589.66 + $319.15 = $908.81

if interest increases by 2%, present value (market value) will decrease by $91.19 ⇒ 9.12% decrease

if market interest rates decrease by 2%:

5% / 2 = 2.5% semiannual payments

6 years to maturity = 12 payments

present value = future value = 1000

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  • PV of coupon payments = 35 x 10.25776 (PV annuity factor, 2.5%, 12 periods) = $359.02

new market price = $743.56 + $359.02 = $1,102.58

if interest decrease by 2%, present value (market value) will increase by $102.58 ⇒ 10.26% increase

<u>Bond Dave</u>

9% / 2 = 4.5% semiannual payments

19 years to maturity = 38 payments

present value = future value = 1000

  • PV of face value = 1,000 / (1 + 4.5%)³⁸ = $187.75
  • PV of coupon payments = 35 x 18.04999 (PV annuity factor, 4.5%, 38 periods) = $631.75

new market price = $187.75 + $631.75 = $819.50

if interest increases by 2%, present value (market value) will decrease by $180.50 ⇒ 18.05% decrease

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5% / 2 = 2.5% semiannual payments

6 years to maturity = 12 payments

present value = future value = 1000

  • PV of face value = 1,000 / (1 + 2.5%)³⁸ = $391.28
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if interest decrease by 2%, present value (market value) will increase by $243.48 ⇒ 24.35% increase

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Answer:

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