The CPI is more commonly used as a gauge of inflation than the GDP deflator is because...

What are the 4 main factors of production? Give two examples for each one.

NeTakaya

Answer:

land

labour

capital

entrepreneur

Explanation:

land

examples include waterbodies and land forms like plateau and ridges

capital

include monetary wealth i.e money and machinery

entrepreneur

includes sole proprietorship and partnership

labour

include skilled and unskilled labour

5 0

2 years ago

Read 2 more answers

You just purchased an existing business that produces solar panels according to the following production function:

frez [133]

Answer:

<u>$50</u>

<u>Explanation</u>:

In the production function, Q = K0.5L0.5,

K denotes the fixed input in the short run.

First, we calculate the total cost:

Cost of Capital= 25 x $1 = $25

Cost of Labor (for a start 25 workers are used)= 25 x $1 = $25

Total= $50

Since the price of the solar panels is $100, substrating from the total cost $50 (100-50) we get $50 profit per unit of solar panel.

4 0

3 years ago

A company is currently selling 10,000 units of product monthly for $40 per unit. The unit contribution margin is $27. The compan

Ludmilka [50]

Answer:

The company should accept the idea because profit will increase by $24,000.

Explanation:

A company is currently selling 10,000 units of product monthly for $40 per unit.

The unit contribution margin is $27.

The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month.

The unit contribution margin is the difference between selling price and variable cost per unit.

An increase in the selling price of $5 will cause the contribution margin to increase by $5, from $27 to $32.

Profits is the product of contribution margin and number of output.

At initial price, the profit was

= $10,000\ \times\ \$ 27$

= $270,000

At the new price the profit will be

= $10,750\ \times\ \$ 32$ - $50,000

= $344,000 - $50,000

= $294,000

The increase in profit

= $294,000 - $270,000

= $24,000

3 0

2 years ago

Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemploym

Vilka [71]

Answer:

1a.

FICA-Social Security 5,369.20

FICA-Medicare 1,255.70

FUTA 519.60

SUTA 4,676.40

1B.

Dr Office salaries expense 25,760.00

Dr Sales salaries expense 60,840.00

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr Employee fed. inc. taxes payable 12,760.00

Cr Employee medical insurance payable 1,440.00

Cr Employee union dues payable 780.00

Cr Salaries payable 64,995.10

2.

Dr Payroll taxes expense 11,820.90

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr State unemployment taxes payable 4,676.40

Cr Federal unemployment taxes payable 519.60

Explanation:

1a. Calculation for the amounts for each of these four taxes of Regis Company.

REGIS Company’s:

Tax January 8 earnings

Subject to tax ×Tax Rate= Tax Amount

FICA-Social Security

86,600× 6.20%= 5,369.20

FICA-Medicare 86,600×1.45%= 1,255.70

FUTA 86,600×0.60%=519.60

SUTA 86,600× 5.40% =4,676.40

1B. Preparation of the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities

Jan 8

Dr Office salaries expense 25,760.00

Dr Sales salaries expense 60,840.00

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr Employee fed. inc. taxes payable 12,760.00

Cr Employee medical insurance payable 1,440.00

Cr Employee union dues payable 780.00

Cr Salaries payable 64,995.10

2. Preparation of the journal entry to record Regis's employer payroll taxes resulting from the January 8 payroll

Jan 8

Dr Payroll taxes expense 11,820.90

(5,369.20+1,255.70+4,676.40+519.60)

Cr FICA—Social sec. taxes payable 5,369.20

Cr FICA—Medicare taxes payable 1,255.70

Cr State unemployment taxes payable 4,676.40

Cr Federal unemployment taxes payable 519.60

Calculation for the amount Subject to tax

Office salaries $25,760

Sales salaries $60,840

Subject to tax=$86,600

4 0

2 years ago

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 u

arlik [135]

Answer:

B) $.10.

Explanation:

All the cost used in the production process is called production cost.

Capital cost = Units x Cost per unit = 2 x $10 = $20

Raw Material cost = Units x Cost per unit = 5 x $4 = $20

Labor cost = Units x Cost per unit = 8 x $3 = $24

Total Cost = Capital cost + Raw Material cost + Labor cost

Total Cost = $20 + $20 + $24 = $64

Cost per unit = Total cost / Number of units = $64 / 640 = $0.10

6 0

3 years ago