Steve owns a bike store, his total costs are $1.2 million per year. Last year, Steve sold 1,200 bikes. Steve's average total cost was $1,000 per bike.
To solve: take the total costs of $1.2 million and divide it by the number of bikes sold, $1,200
Average total cost = 1,200,000/1,200
Average total cost = $1,000
Answer:
Fisher effect
Explanation:
Fisher effect is the effect in the economic theory that is established by the economist Irving Fisher, which states the relationship among the inflation and both nominal and the real interest rates.
This effect state that the real rate of interest equals to the nominal rate of interest deduct the expected inflation rate.
So, the relationship which is mentioned in the question is the fisher effect as it state the rate of interest that reflect the expectations likely the future inflation rates.
Answer:
Mort Zuba's ability to sell its factories in Astonsia to pay its debts is measured by calculating <u>Liquidity ratios.</u>
Explanation:
Liquidity ratios are the ratios that measure the ability of a company to meet its short term debt obligations. These ratios measure the ability of a company to pay off its short-term liabilities when they fall due.
Answer:
2018 = $4,945.46
2019 - $4,450.91
Explanation:
sum-of- the-years'-digits depreciation expense =( number of useful lives remaining / sum of the years ) x (Cost of asset - residual value)
sum of the years = 1 +2 +3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55
depreciation expense in 2018 = (10 / 55 ) x ( $33,600 - $6,400) = $27,200 X 0.181818 = $4,945.46
depreciation expense in 2018 = (9 / 55 ) x ( $33,600 - $6,400) = $27,200 X 0.163636 = $4,450.91
