Answer: $2.78
Explanation:
Average variable cost is calculated by dividing the total variable cost of producing a certain number of units of a good by that same number of units.
Average variable cost = Variable cost of producing 18 sneakers / 18
= 50 / 18
= 2.7778
= $2.78
Lisa is wondering if her company is earning the income they expected to earn at the beginning of this year. She looks at to see how the money looks, while remembering that this budget does not show cash outlays. This type of budget is called Expense Budget
<h3>
What is Expense Budget?</h3>
- The Expense Budget displays the revenue and capital expenditures of several ministries and departments and provides estimates for each under "Plan" and "Non-Plan."
- It provides a thorough study of various expenditure kinds as well as a general explanation for why estimates vary. The Expense Budget also includes the Central Government's requests for grants.
- Capital assets are crucial expenses for firms since they include cash outlays for production machinery and other equipment that generates revenue.
- Due to the fact that production equipment is more expensive than standard office supplies or monthly expenses, financing is sometimes required to purchase capital assets.
- The purchase of capital assets is typically included in expense budgets, and their effects on working capital and future cash flows are quantified. Businesses wouldn't be able to accomplish their operational goals without well managed capital investments.
To know more about Expense Budget with the given link
brainly.com/question/14318672
#SPJ4
Answer:
number of periods = 8 years.
Explanation:
We know,
Future Value = Present value × 
Here,
Present value = PV = $2,500
Future value = FV = $3,500
Interest rate (Compounding) = 5% = 0.05
We have to determine how many years (Periods) it will take, n = ?
Putting the values into the above formula,
$3,500 = $2,500 × 
or, = $3,500 ÷ $2,500
or, n log 1.05 = 1.4
or, n × 0.17609 = 1.4
or, n = 1.4 ÷ 0.17609
Therefore, number of years = 7.95 or 8 years.
Answer:
a. Inflation
Explanation:
In the context of economics, inflation refers to the increase in the price of goods and services
Moreover, we also know that
(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)
According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation
Hence, the option a is correct
