What causes cost-push inflation

At December 31 of the current year, Cart Company has a $16,000 Notes Receivable from a customer. Interest of 5% has accrued for

lyudmila [28]

Answer: $23,200 as total current asset for the period

Explanation:

Note Receivable has a value $16,000

Interest on Note = 5%

Accrued for 9 months

Yearly Interest accrued = 16,000*5%*12= 9,600

Interest for 9 months = 9600/12*9 = 7,200

Balance sheet Extract

Other Income

Int Accrued on Note Receivable $7,200

Current Asset

Note Receivable $16,000

Int Accrued on Note Receivable $7,200

Total Current Asset $23,200

6 0

4 years ago

Explain what is happening during each phase of the cycle with: I. output, II. employment III. and inflation

Ludmilka [50]

Answer:

During each phase of the economic cycle of Recession and Expansion, the following economic variables fluctuate, accordingly:

I. Output: During Recession, production output reduces. But, during expansion, product output rises with rising income, employment, and even stable inflation.

II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.

III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises. It reduces when the economy enters a recession.

Explanation:

Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation. It usually cascades between the spectrum of expansion and recession. This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.

5 0

4 years ago

Robust, a leading industrial manufacturer, has developed a new air conditioner with high cooling capacity. To identify potential

stich3 [128]

Answer:

This scenario illustrates lead generation.

Explanation:

Lead generation is the way toward pulling in and changing over customers and into somebody who has shown passion for your organization's item or products. A few examples of lead generations are requests for newspapers, blog entries, search engines and various other online contents. Similar, lead generation is combined with lead management to increases purchases, and the process is called pipeline marketing.

8 0

4 years ago

If washburn guitars were to lower the price of the maya pro dd75 to $2,499 from $2,699, sales of the guitar would increase 30 pe

Vikki [24]

The effect of the decrease in the price of the guitars illustrates an elastic demand.

<h3>What does the price change illustrate?</h3>

The first step is to determine the percentage change in the price of the guitars.

Percentage change in price = (2499 / 2699) - 1 = -0.074 = -7.4%

Now, determine the price elasticity of demand =30 / -7.4% = -4.1

The coefficient of elasticity is greater than 1 in absolute terms, thus the demand is elastic.

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

#SPJ1

8 0

2 years ago

Suppose the transfers of pillars to the Lantern Division cut into sales to outside customers by 14,000 units. Further suppose th

Sloan [31]

Complete question:

The Pillar Division of the Gothic Building Company produces basic pillars which can be sold to outside customers or sold to the Lantern Division of the Gothic Company. Last year, the Lantern Division bought all of its 25,000 pillars from Pillar at $2.00 each. The following data are available for last year's activities of the Pillar Division:

Capacity in units 320,000 pillars

Selling price per pillar to outside customers $2.05

Variable costs per pillar $1.20

Fixed costs, total $155,000

The total fixed costs would be the same for all the alternatives considered below.

Suppose the transfers of pillars to the Lantern Division cut into sales to outside customers by 20,000 units. Further suppose that an outside supplier is willing to provide the Lantern Division with basic pillars at $1.92 each. If the Lantern Division had chosen to buy all of its pillars from the outside supplier instead of the Pillar Division, the change in net operating income for the company as a whole would have been:

$2,000 decrease.

$14,000 increase.

$1,000 decrease.

$18,000 decrease.

I tried my best to find the question but was unable to find the exact question, instead I found a symmetry question and its solution is as under:

Answer:

Option D. $18,000 decrease

Explanation:

The decrease in the net operating income that would occur due to purchase of all of the pillars from the outside supplier would cost the additional cost to the company which is opportunity cost per pillar and is calculated by using the following formula:

Opportunity Cost = Variable Cost - Purchasing Cost

Here, the variable cost to manufacture the pillar within the factory is $1.2 per pillar whereas the purchasing cost of pillars from outside supplier is $1.92 per pillar.

By putting values, we have:

Opportunity Cost = $1.2 - $1.92 = $0.72

Now for purchasing 25,000 units from the supplier, the total opportunity cost would be:

Total Opportunity Cost = $0.72 * 25,000 Units Purchased from Outside Supplier = - $18,000

The minus sign shows the decrease in the net operating income.

6 0

4 years ago