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3 years ago

Alex and Becky Fogarty live in Swarthmore, PA. Becky's father, Clancy, lives in Sweden.

Business

1 answer:

RUDIKE [14]3 years ago

4 0

Answer:

1. Becky gets a new video camera made in the United States - consumption (C)

This purchase is included in consumption because Becky, who lives in PA, bought a domestically produced product.

2. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore - government purchases (G)

Government purchases is also known as government spending, and state investment in a highway is a form of government spending.

3. Alex buys a sweater made in Guatemala - imports (M)

Alex is an American who lives in PA, and bought a good made in Guatemala, a foreign country. Thus, his purchase is an import.

4. Becky's father in Sweden orders a bottle of Vermont maple syrup from the producer's website - exports (X)

The father lives in Sweden, and has purchased a good made in America. The good is an export.

5. Alex's employer upgrades all of its computer systems using U.S.-made parts - investment (I)

The employer has made a private investment with the hope of obtaining more economic profit in the future. This is an investment.

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In September of Year 1, Hansen Company issued a note payable to borrow money from its bank. Principal and interest on the note w

Ghella [55]

Answer: True

Explanation:

As a result of the Accrual principle in accounting, transactions need to be recorded in the period that they occur in and not in the period they are paid for in.

The interest in Year 1 was incurred in year 1 and so will need to be recorded in year 1 for the period from issuance of the note to the last day of the accounting period.

This means that if the last day of the accounting period is December 31st, the interest for year 1 would have to be accrued from September to December of year 1 and recorded as year 1 interest.

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3 years ago

Exercise 19-13 Variable cost analysis for a special order LO A1 Grand Garden is a luxury hotel with 160 suites. Its regular suit

zysi [14]

Answer:

If the special offer earns a positive contribution margin, we should accept the special order.

Explanation:

Given that,

No. of suites in luxury hotel = 160

Regular suite rate = $210 per night per suite

Hotel’s cost per night = $135 per suite

Variable direct labor and materials cost = $36

Fixed cost = 99

Total cost per night per suite = $135

Contribution margin per night per suite:

= Room rate per night - Variable cost per night

= $94 - $36

= $58

Contribution margin from special offer:

= Contribution margin per night per suite × Number of nights × Number of suits

= $58 × 3 × 45

= $7,830

Management should accept the special offer.

When the company receives offer, the hotel is running at low season. occupancy rate is 55%

If the special offer earns a positive contribution margin, we should accept the special order.

Room rate is $94 for special order.

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3 years ago

The demand for most products varies directly with changes in consumer incomes. Such products are known as_________.

Alisiya [41]

Answer:

Normal goods

Explanation:

In simple words, normal goods refers to the goods which re necessary for the survival for the survival for re consumer and the consumer do not take its quality into consideration while making a purchase decision.

The demand for such goods have a positive relationship with the income of consumer, that is, when the income or wages of consumer increase the demand for such goods also increases and vice versa.

The increase in demand for normal goods by consumer is sometimes also seen as an indicator of an economic growth. Clothes, vegetable and medicines are some of the many examples of normal goods.

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3 years ago

Read 2 more answers

Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen

Kaylis [27]

Answer:

Total dollar Annual Cost = $300,000

Explanation:

Total loan Commitment = 9000000

Borrowed Fund (Used Portion) = 6000000

Unused Portion (9000000 - 6000000) = 3000000

Annual Commitment Fee for unused Portion = 0.50%

Commitment Fee = 3000000 x 0.05% = 15000

Borrowed Fund (Used Portion) = 6000000

Interest Rate (3.25% + 1.5%) = 4.75%

Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

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3 years ago

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.6 grams

Aleksandr-060686 [28]

Answer:

15,351.00 unfavourable

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price

gram

300 units should have used (300× 4.6) 1380

but did used 2,400

1020

Standard price × 15.05

Material quantity variance 15,351.00 unfavourable

5 0

3 years ago