How does NAFTA's elimination of 20% of Mexican tariffs on U.S. cars affect the United States?

In a press conference, the president of a small country displays a chart showing that GDP has risen by 10 percent every year for

iragen [17]

Answer:

a) the correct answer is "B"

b) the correct answer is "C"

Explanation:

a) the correct answer is "B"

relies on nominal GDP which might have increased because of price increases and not output increases. As nominal GDP accounts for the price and it is calculated at the current price level. The answer is "B".

b) the correct answer is "C"

We can ask for growth rate of real GDP which excludes price change.

8 0

3 years ago

Riggs Company purchases sails and produces sailboats. It currently produces 1,300 sailboats per year, operating at normal capaci

mr_godi [17]

Answer:

The president of Riggs has missed something.

She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.

Explanation:

<u>Cost of Manufacturing the Sails:</u>

Direct materials $93

Direct Labor $83

Total $173

The president of Riggs has included the $90 overhead based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.

Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.

Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity

<u>Conclusion:</u>

The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.

I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.

5 0

3 years ago

Read 2 more answers

the process of using information to link customers, consumers, and the public to the marketer is referred to as _____.

Olegator [25]

Answer:

the process of using information to link customers, consumers, and the public to the marketer is referred to as marketing Research!!

go for it!!

8 0

2 years ago

Why are inventories stated at lower-of-cost-or-market?a. To report a loss when there is a decrease in the future utility.b. To k

Helga [31]

Answer: The correct answer is "c. To report a loss when there is a decrease in the future utility below the original cost."

Explanation: When talking about current assets, or more precisely, Merchandise inventory, it is common that sometimes the sale value is less than the original cost of the assets, therefore a negative holding result is produced, that is, a loss.

4 0

3 years ago

Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on

german

Answer:

Acquisition cost

a. Patent: $6,000

b. Trademark: $4,000

c. Computer licensing rights: $42,000

2. Amortization for current year

a. Patent: $500

Annual Amortization charge = Cost / Estimated life = $6,000 / 12 = $500

b. Trademark: $0. Since it has an indefinite life.

c. Computer licensing rights: $7,000

Annual Amortization charge = Cost / Useful life = $42,000 / 6 = $7,000

3. Balance Sheet (Partial)

Assets

Intangible Assets=$44,500

($6,000 + $4,000 + $42,000 - $500 - $7,000)

Income Statement (Partial)

Under Continuing operations

Amortization expense=$7,500

6 0

3 years ago