Answer:
Money plays the role as a store of value, a medium of exchange, as well as the unit cost of both the computer and vacation.
Explanation:
Money is a generally accepted medium of exchange or as a means of payment for goods ad services. The value of a product or a service is determined by how much money people are willing to pay for it. Hence money is also a determinant of value.
From the question,
Shen has $1537 in his account, this is the store of value he is willing to exchange for either a computer or vacation.
As he cannot afford both, he measures the opportunity cost and chooses the computer over the vacation. his check of $1.299 with which he buys the computer is his medium of exchange with which he purchased the computer.
The costs of both of the vacation and computer is the unit cost of value p;aced on both of them
Answer: -2.55%
Explanation:
The formula to calculate Forward Rate is:
Forward Rate = Spot rate X 
where 
is the Interest rate of the overseas country and
is the Interest rate of the domestic country
$0.0052 = 0.005 X 
$0.0052 X 
= 0.005 X 1.0135
$0.0052 X = 0.0050675
= 
= 0.9745 - 1
= - 0.02548
The yield on 180-day risk-free securities in the United States is -2.55%
Answer:
1
Explanation:
Income elasticity is how the quantity demanded of a product changes due to a change in the income of an individual.
The formula for calculating Income elasticity of demand is, percentage change in quantity demanded divided by the percentage change in income.
Here the income of Arista increases but the price of gizmos remains the same, that is why the 10% now will be more than what it used to be before the increase in income.
Hope this helps. Good luck.
Answer:
Total Per Unit
Materials $155,200 $96
Direct labor $57,600 $48
Other costs varying with output $34,800 $29
<u>Fixed costs $540,000 $450 </u>
Total costs $747,600 $623
Since South is going to increase its production by 300 more units to be able to sell them to North, that would change the average fixed cost per unit = $540,000 / 1,500 units = $360 per unit.
Therefore the total cost per unit = $96 + $48 + $29 + $360 = $533 (instead of $623).
Since South charges its sales to North a 20% margin, the selling price per unit should = $533 x 120% = $639.60 and the total invoice for the 300 units = $639.60 per unit x 300 units = $191,880
Answer: $1,160,000
Explanation: The Break even point depicts the amount of sales by making which the company will be at no profit or no loss situation. It can be computed using following formula :-
where,
contribution margin = 1 - variable cost ratio
= 1 - 0.6
= 0.4
so, putting the values into equation we get :-
= $1,160,000
