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Darya [45]
3 years ago
13

At 4 percent inflation, how much time will it take for prices to double?

Business
2 answers:
Vladimir79 [104]3 years ago
8 0

Answer:

eighteen years

Explanation:

Given that

Inflation rate = 4%

For computing the how much time is required for prices to double we apply the rule for 72 that means the 72 is divided by the inflation rate so that the time period could come

In mathematically

Number of years is

= 72 ÷ 4%

= 18 years

Hence, in the eighteen years, the price is double

Dahasolnce [82]3 years ago
4 0
Is should only take 18 years
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ou are a producer of cold medicine. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At
Scilla [17]

Answer:

The flood shifts the supply to the left.

The increase in healthcare costs shifts the supply curve to the left.

Explanation:

An increase in the cost of production inputs (increase in health costs) or a decrease in the availability of resources (the flood reduced the firm's production capability), will shift the supply curve to the left.

A leftward shift of the supply curve will lower the quantity supplied and will increase the price of the good at every level of demand.

6 0
3 years ago
Create a PPC for a country that produces 50 million guns and 200 tons of butter and label the following
Neporo4naja [7]

The production possibility curve shows the different combination for output that can be produced from the resources and technology.

<h3>What is a PPC?</h3>

It should be noted that a PPC is simply a graph that's used to show the different combination for output that can be produced from the resources and technology.

In this case, the points show how much of the goods van be produced. Point E means underutilization.

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8 0
2 years ago
With ________, the seller pays both the cost of loading and transporting the product to the customer.
Lynna [10]

With  F.O.B. delivered pricing   the seller pays both the cost of loading and transporting the product to the customer.

Means of transport is used interchangeably with means of transport. Transportation means include buses, trains, planes, ships, cars, etc. Transportation means roads, airways, oceans, and so on. It is one of many types of transport machinery used to transport people and cargo.

Modern means of transportation include airways, waterways, and railroads. Description: Modes of transport include air, water, and land. Examples of modern transportation include ships, boats, planes, and trains. Each mode of transportation has its own infrastructure, vehicles, carriers, and operations.

Means of transport is used interchangeably with means of transport. Transportation means include buses, trains, planes, ships, cars, etc. Transportation means roads, airways, oceans, and so on. It is one of many types of transport machinery used to transport people and cargo.

Modern means of transportation include airways, waterways, and railroads. Description: Modes of transport include air, water, and land. Examples of modern transportation include ships, boats, planes, and trains. Each mode of transportation has its own infrastructure, vehicles, carriers, and operations.

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8 0
2 years ago
SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a cap
iogann1982 [59]

Answer:

SafeRide, Inc.

a. The financial implications of accepting the order are that total production cost will increase by $315,000 with a corresponding increase in sales revenue of $540,000, and an increase in net income by $225,000.

b. Under full capacity, the total production cost will increase by $1,485,000 for adding additional facilities while the sales revenue would increase by $540,000, resulting to a loss of $945,000.

c. Under full-capacity circumstances, there is a financing disadvantage of accepting the order because the order will entail additional capacity and facilities, resulting to a loss of $945,000.

Explanation:

Annual production capacity = 300,000 units

Current production capacity = 180,000 units

Special order from a German manufacturer = 60,000 units

Special order price per unit = $9.00

Budgeted Costs For      180,000 Units  240,000 Units  Difference 60,000

Manufacturing costs

Direct materials                 $450,000           $600,000       $150,000

Direct labor                           315,000             420,000          105,000

Factory overhead              1,215,000           1,260,000           45,000

Total                                  1,980,000          2,280,000       $300,000

Selling and administrative 765,000              780,000            15,000

Total                              $2,745,000        $3,060,000        $315,000

Costs per unit

Manufacturing                       $11.00                  $9.50

Selling and administrative       4.25                     3.25

Total                                     $15.25                  $12.75

Selling price to North American manufacturers = $20 per unit

Financial implications of accepting the order:

Manufacturing costs

Direct materials                  $150,000

Direct labor                           105,000

Factory overhead                  45,000

Total                                  $300,000

Selling and administrative    15,000

Total                                  $315,000

Total cost per unit = $5.25 ($315,000/60,000)

Total manufacturing cost per unit = $5 ($300,000/60,000)

Increase in net income from accepting the order = $225,000 ($9.00 - $5.25) * 60,000

Manufacturing costs

Direct materials                  $150,000 (variable)

Direct labor                           105,000 (variable)

Factory overhead              1,215,000

Total                                $1,470,000

Selling and administrative    15,000 (assumed to be variable)

Total                               $1,485,000

Unit cost per additional unit = $24.75

4 0
3 years ago
Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. T
Neko [114]

Answer:

Total contribution margin= $1,884,180

Explanation:

Giving the following information:

Direct Materials 150

Direct Labor 28

Variable Manufacturing Overhead 25

Variable Selling 16

Sales in units= 10,130

Selling price= $420

Direct material cost= 150*1.1= $165

<u>First, we need to calculate the unitary contribution margin:</u>

Unitary contribution margin= selling price - total unitary variable cost

Unitary contribution margin= 420 - (28 + 25 + 16 + 165)

Unitary contribution margin= $186

<u>Now, the total contribution margin:</u>

Total contribution margin= 10,130*186

Total contribution margin= $1,884,180

3 0
3 years ago
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