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3 years ago

In order to better compare/contrast costs of living in the various environments gnp/gdp may be adjusted to:

1 answer:

6 0

The answer is Purchasing power parity or the PPP. PPP is a hypothesis which expresses that trade rates between monetary forms are in balance when their acquiring power is the same in each of the two nations. Relative acquiring power equality is a financial hypothesis which predicts a connection between the swelling rates of two nations over a predetermined period and the development in the conversion standard between their two monetary forms over a similar period. It is a dynamic rendition of the total PPP hypothesis.

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In a monopoly market, Select one: a. other firms have no incentive to enter the market. b. profits will always be positive becau

Ratling [72]

Answer: Option (c) is correct.

Explanation:

Correct option: The demand facing the firm is downward-sloping because it is the market demand.

In a monopoly market conditions, there is a single seller in the market and the monopolist firm is price setter. But the demand curve faced by the monopoly firm is downward sloping because monopolist is a single firm who is operating in the market and there is a need to reduce prices if he wants to sell an additional units.

4 0

3 years ago

Your boss is considering a 5-year investment project. If the project is accepted, it would require an immediate spending of $678

marusya05 [52]

Answer:

$50.47

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = - ($678 + $58 ) = -736

Cash flow in year 1 - 4 = $173

Cash flow in year 5 = $173 + $144

I = 8.1

NPV = 50.47

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0

2 years ago

44000 Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a consta

Minchanka [31]

Answer:

Maximum Dollar Increase = $10079.76

Explanation:

(See attachment for full question)

INCOME STATEMENT

Sales ---------- $67,000

Costs ---------- $43,800

EBIT ------------ $23,200

Taxes (34%) ----$7,888

Net income ------$15,312

BALANCE SHEET

Current Assets ------$31,000

Fixed Assets --------- $118,000

Total ------------------- $149,000

Long-term Debt -----$68,000

Equity ------------------- $81,000

Total ----------------- $149,000

Dividend Payout Ratio = 30%

Plowback Ratio is calculated by: 1 - Dividend Payout Ratio

Plowback Ratio = 1 - 30%

Plowback Ratio = 1 - 30/100

Plowback Ratio = 1 - 0.3

Plowback Ratio = 0.7

Plowback Ratio = 70/100

Plowback Ratio = 70%

Return on Equity (ROE) is calculated by: Net Income/Total Equity

Net Income = $15,132

Total Equity = $81,000

ROE = $15,132/$81,000

ROE = 0.186815

ROE = 18.68%

Calculating Sustainable Growth Rate (SGR)

SGR = (ROE * Plowback Ratio)/(1 - ROE * Plowback)

SGR = (0.186815 * 0.7)/( 1 - 0.186815 * 0.7)

SGR = (0.1307705)(1-0.1307705)

SGR = 0.1307705/0.8692295

SGR = 0.150444157728194

SGR = 0.1504

Max increase = (Sales * SGR)= ($67,000 * 0.1504)

Max Increase = $10079.75856778905

Max Increase = $10079.76

7 0

3 years ago

Hache Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departmen

Greeley [361]

Answer:

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797

Explanation:

Calculation of Equivalent Units of Production

<u>Materials </u>

Units transferred to the next department (5,800 × 100%) = 5,800

Units in ending Work In process (1,850 × 50%) = 925

Total Equivalent Units of Production for Materials = 6,725

<u>Conversion</u>

Units transferred to the next department (5,800 × 100%) = 5,800

Units in ending Work In process (1,850 × 20%) = 370

Total Equivalent Units of Production for Conversion Costs = 6,170

Calculation of Cost per Equivalent units of Production

Materials

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

= ($ 8,700 + $ 91,000) ÷ 6,725

= $14.825

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

= ($ 8,500 + $ 126,300) ÷ 6,170

= $21.848

Calculation of cost of ending work in process inventory

Materials ( 925 × $14.825) = $13,713.12

Conversion Cost ( 370 × $21.848) = $8,083.76

Total = $21,796.88

Thus,

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797.

5 0

2 years ago

India specializes in business process outsourcing and does this more efficiently than any other country. It buys agricultural co

uysha [10]

Answer:

Ricardo’s Theory of Comparative Advantage

Explanation:

Comparative advantage is the term used to define the ability of an individual, firm or country to produce a particular good or service at a lower opportunity cost than that if it’s competitors or trade partners. Opportunity cost is the benefit lost from the second best alternative.

When a country can produce a product more efficiently (i.e maximum output using minimum resources) than that of its trade partners, it is known as that it has absolute advantage in that product. India tends to have absolute advantage in both business processes outsourcing as well as producing agricultural commodities as it is mentioned that it can produce both of these more efficiently than the United States.

However, although it has absolute advantage in both, it is still less efficient in producing agricultural commodities when compared to business process outsourcing. In other words, if it attempts to produce agricultural commodities in-house, the benefit lost from the second best alternative: business process outsourcing is high. The opportunity cost is higher when it produces agricultural commodities than it is when it does business process outsourcing. Hence, due to the law of comparative advantage, it chooses to specialize in business process outsourcing and imports agricultural commodities.

5 0

2 years ago