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4 years ago

1. The level of prices and the value of money

Business

1 answer:

Marizza181 [45]4 years ago

8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

In year one, the basket costs $8.00.

In year two, the price of the same basket is $7.00.

Deflation= (7/8)-1= - 12.5%

In year one, $40.00 will buy ________ baskets, and in year two, $40.00 will buy ________ baskets.

Year 1= 40/8= 5 baskets

Year 2= 40/7= 5.71 baskets

The value of money rises.

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Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the product

Alina [70]

Solution :

Standard Deluxe Total

Total cost of direct material 245000 155000 400000

Total cost of direct labor 650000 250000 900000

Total machine hours 150000 100000 250000

Total setups 75 125 200

Total material pounds 18000 9000 27000

Total direct hours of labor 6000 3750 9750

No. of units shipped 20000 5000 25000

a). Cost drivers rates :

Receiving 150 Percentage of materials(dollars)

$\left(600000 \times \frac{100}{400000}\right)$

Manufacturing 13.20 Per machine hour

$\frac{3300000}{250000}$

Engineering 11000 Per set up

$\frac{2200000}{200}$

Machine set up 4500 per set up

$\frac{900000}{200}$

Shipping 40 per unit

$\frac{1000000}{25000}$

b). Units product cost

Standard Deluxe

Direct cost 895000 405000

(245000+650000) (155000+250000)

Overhead :

Receiving 367500 232500

(245000 x 150%) (155000 x 150%)

Manufacturing 1980000 1320000

(150000 x 13.2) (100000 x 13.2)

Engineering 825000 1375000

(75 x 11000) (125 x 11000)

Machine set up 337500 562500

(75 x 4500) (125 x 4500)

Shipping 800000 200000

(20000 x 40) (5000 x 40)

Total costs 5205000 4095000

No of units 20000 5000

Unit cost 260.25 819

(5205000/20000) (4095000/5000)

7 0

3 years ago

Heart of Tennessee Telecom has these account balances at December 31, 2016:

Komok [63]

Answer:

Explanation:

a. Current ratio = current assets/ current liability

= current assets= 2,300+5,700+3,500= 11,500

Current liability= 3,000+3700= 6,700

Current ratio = 11,500/3700

= 1.72

b. How much in current assets does Heart of Tennessee Telecom have for every dollar of current liabilities that it owes?

It has $1.72

3 0

3 years ago

People enjoy outdoor holiday lighting displays and would be willing to pay to see these displays but can't be made to pay. Becau

Katarina [22]

Answer: (2) Demand-side market failure

Explanation:

The demand side market failure is one of the type of market effect that basically occur due to the production of the negative response and the effect by the various types of marketing techniques like surveys and the focus groups.

The market failure demand side is one of the type of economical situation in which the customers are willing to pay for the specific products and the services in the market which is not fully capture.

According to the given question, the demand- side market failure is one of the example that best illustrating the given situation. Therefore, Option (2) is correct answer.

8 0

4 years ago

You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows.

Firlakuza [10]

Answer:

A.- DECREASE

B.- DECREASE

C.- INCREASE

D.- INCREASE

E.- INCREASE

Explanation:

a. The discount rate increases

DECREASE the discoutn factors will be higher therefore, the present values lower.

b. The cash flows are in the form of a deferred annuity, and the total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000

DECREASE Because the cashflow is generate on a longer period there is more exposure to discount rates.

c. The discount rate decreases

INCREASE The discount factor are lower. This situation is the opposite as (a)

d. The riskiness of the investment's cash flows <u>decreases</u>

INCREASE a lower risk derivates in lower cost of capital thus, lower iscount rates. This increase the present value of the cashflow.

e. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.

INCREASE as most of the future cash flows are at the beginning they have less exposure to time value of money.

4 0

3 years ago

What is the shape of MP curve?

Serga [27]

EXPLANATION: The MP curve is one of three related curves used in the analysis of the short-run production so basically the marginal product (MP) curve plays in key role in the economic analysis of short-run production by firm

Answer: MP curve looks like a reverse U shaped curve or are invertedly U-shaped

8 0

3 years ago