<span> The </span>income statement<span> reports revenues and expenses and the resulting </span>net income
The three primary aspects
of a free market could include private ownership of everything for sale,
free-floating forces of supply and demand, and a man secretly in charge of
everything. <span>A free market economy is a type of economic system whereby supply and demand,
with a minimum of involvement on the part of a government drive the forward
movement of the economy.</span>
Answer:
D : production capacity is prioritized to the product with the highest unit contribution margin.
Explanation:
The poduct with the highest unit contribution margin is key to calculate the Gross Profit Margin
.
"Gross profit margin analyzes the relationship between gross sales revenue and the direct costs of sales. This comparison forms the first section of the income statement. Companies will have varying types of direct costs depending on their business. Companies that are involved in the production and manufacturing of goods will use the cost of goods sold measure while service companies may have a more generalized notation.
Overall, the gross profit margin seeks to identify how efficiently a company is producing its product. The calculation for gross profit margin is gross profit divided by total revenue. In general, it is better to have a higher gross profit margin number as it represents the total gross profit per dollar of revenue.
"
Reference: Beers, Brian. “Gross, Operating, and Net Profit Margin: What's the Difference?” Investopedia, Investopedia, 14 Sept. 2019
Answer:
$2,848.94
Explanation:
first of all, we must determine the amount of money that we need to have in our account in order to be able to withdraw $25,000 in 10 years.
You will start making your semiannual deposits today and they will end in exactly 2 years, so we need to find out the present value of the $25,000 in two years:
PV = $25,000 / (1 + 3%)¹⁶ = $15,579.17
that is now the future value of our annuity due:
FV = semiannual deposit x FV annuity due factor (3%, 5 periods)
$15,579.17 = semiannual deposit x 5.46841
semiannual deposit = $15,579.17 / 5.46841 = $2,848.94
<span>Spending more on investments in hopes of high returns will increase long term savings and decrease short term spending thus affecting the economy by affecting the law of supply and demand. The demand side of the equation would be affected as more money is put into or spent on savings.</span>
