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slavikrds [6]
3 years ago
5

Books and brew (bb) is a large city bookstore that sells books and music cd's, and also has a cafe. Currently, bb uses a single-

driver system to allocate its operating costs to each of its three product lines, using the the number of items sold as the single cost driver. But bb's management is concerned that this allocation system may not be providing the best information for making a variety of pricing decisions. Bb's operating costs for 2017 were as follows:
Business
1 answer:
Anni [7]3 years ago
7 0

Answer:

The total cost is 1,865,200

The cost per unit is 706 per CD.

Explanation:

Books and brew uses single driver system to allocate the cost. It has incurred total expense of 1,865,200 for the CD in 2014. The number of CD's sold are 2640 this year. The per unit cost is calculated by dividing the total cost of CD's by the number of CD sold this year.

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On January 10, Chen Co. issued an $80,000, 6%, 90-day note payable to Rao Co. Using a 360-day year, what is the total interest e
Yanka [14]

Answer:

d. $1,200

Explanation:

The computation of the interest expense is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $80,000× 6% × (90 days ÷ 360 days)

= $1,200

We simply apply the simple interest formula

Since the number of days and the total number of days are given so we considered the same for the computation part.

4 0
3 years ago
If aggregate planned expenditures in the economy increase by $100 million, then real GDP will _____ $100 million.
nirvana33 [79]

Answer:

Real GDP will rise by $100 million

Explanation:

Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]

Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP

At equilibrium : AD or APE =  AS or NY or GDP

If AD or APE increases by $100 million :

AD or APE  > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE

So, GDP will also rise by $100 million

6 0
3 years ago
What is the difference between an employee and an entrepreneur?
sasho [114]

Answer:

Employees fall under a particular job category. Entrepreneurs create their own profile. Employees have to perform tasks according their respective job profiles. Irrespective of their interest, they are forced to work in an alien environment.

3 0
3 years ago
Read 2 more answers
0.5 points eBookPrintReferences Check my work Check My Work button is now enabledItem 3Item 3 0.5 points Agee Storage issued 37
trapecia [35]

Answer:

Decline in Agee's total paid up capital is $14,000,000

Explanation:

<u>Computation of decline in Paid-Up capital</u>

Particulars                                        Amount

Cash paid for first repurchase      $10,000,000

(1 million shares*$10)

Value of first purchase                   $12,000,000

(1 million * $12                                 <u>                        </u>

Benefit on first repurchase            $2,000,000

Cash paid for second repurchase = $16,000,000

(1 million shares * $16)

Value of second repurchase            $12,000,000

(1 million * $12)                                    <u>                        </u>

Reduction in Total paid-in-capital   <u>$14,000,000</u> ($2 million + $12 million)

8 0
3 years ago
If the market index subsequently rises by 8% and Ford’s stock price rises by 7%, what is the abnormal change in Ford’s stock pri
Margarita [4]

Answer:

-1.9%.

Explanation:

The computation of the abnormal change in the stock price of ford should be given below:

Given that

The return on the market is 8%.

So, the forecast monthly return for Ford is

= 0.10% + (1.1 × 8%)

= 8.9%.

And, the Ford’s actual return was 7%,

So,

the abnormal return be

= 7% - 8.9%

= -1.9%.

3 0
2 years ago
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