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2 years ago

For each of the following scenarios, determine the effect on aggregate supply.

Business

1 answer:

anastassius [24]2 years ago

4 0

Answer:

(a) Option (c) is correct.

(b) Option (b) is correct.

Explanation:

(a) If there is an unexpected decrease in the oil prices (Positive supply shock) then as a result this will reduce the cost of production of the firms and hence, there is an increase in the supply of the goods. This will shift the aggregate supply curve rightwards.

(b) If all the producers are required to contribute more towards the heath insurance coverage (negative supply shock) then as a result this will increase the cost of production of the producers. So, this will lead to decrease the supply of the goods and also, shift the supply curve leftwards.

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Should you feel bad about quitting your job for more money when you like your job

cupoosta [38]

Maybe if your new job is extremely boring or affects you in some way. But you shouldn’t feel bad since money can get you through rent and taxes and so on

3 0

2 years ago

Granite Company purchased a machine costing $133,000, terms 2/10, n/30. The machine was shipped FOB shipping point and freight c

nikitadnepr [17]

Answer:

$144,940

Explanation:

machine costing = $133,000

freight charges = $3,300

special mounting and wiring connections costing = $11,300

Discount rate = 2%

Compute the machine cost as given below:

Machine cost:

= Purchase price × (1 - Discount rate) + Freight charges + Special mounting and wiring connection cost

= 133,000 × (1 - 2%) + $3,300 + $11,300

= $144,940

6 0

3 years ago

The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20%

Vilka [71]

Answer:

or ordering quantity 1-9,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*2.95)) = 1594.48201

Optimal ordering quantity will not be in this range as calculated EOQ is beyond the range

For ordering quantity 10-999,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*2.5)) = 1732.050808

Optimal ordering quantity will not be in this range as calculated EOQ is beyond the range

For ordering quantity 1000-4999,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*2.3)) = 1805.787796

Total annual cost = ordering cost + holding cost + purchase cost = (10000/1805.787796)*75+(1805.787796/2)*(20%*2.3)+10000*2.3 = 23830.66239

For ordering quantity 5000 or more,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*1.85)) = 2013.468166

EOQ is adjusted upwards to 5000 to avail the discount

Total annual cost = ordering cost + holding cost + purchase cost = (10000/5000)*75+(5000/2)*(20%*1.85)+10000*1.85 = 19575

So, optimal ordering quantity = 5000

Firm should pay $1.85 per unit

Annual cost at the optimal behavior = 19575

Explanation:

5 0

2 years ago

During 2017, Ecuyer Industries reported cash provided by operations of $794,000, cash used in investing of $686,000, and cash us

marshall27 [118]

Answer:

$518,000

Explanation:

Data provided in the question:

cash provided by operations = $794,000

Cash used in investing = $686,000

Cash used in financing = $190,000

cash spent for fixed assets during the period = $276,000

Average current liabilities = $650,000

Average total liabilities = $1,716,000

Now,

Ecuyer's free cash flow

Particulars Amount

Cash provided by operations $794,000

Less: Cash spent for fixed assets during the period $276,000

==============================================================

Ecuyer's free cash flow $518,000

5 0

3 years ago

Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405,405 for real estate with land, land improvement

larisa86 [58]

Answer:

Rodriguez Company

Purchase price = $405,405

Land is appraised at $202,500

Land improvements $67,500

Building appraised at $180,000

Total appraised value $450,000

Land will be apportioned $202,500/$450,000 x $405,405 = $182,432.25

Land improvements will be apportioned $67,500/$450,000 x $405,405 = $60,810.75

Building will be apportioned $180,000/$450,000 x $405,405 = $162,162

Total cost of assets = $405,405.

2. Journal Entries:

Debit Land $182,432.25

Debit Land Improvements $60,810.75

Debit Building $162,162

Credit Cash Account $405,405

To record the purchase of the assets.

Explanation:

The purchase price is proportionately allocated to the items based on their appraisal values.

7 0

3 years ago