Answer:
(A) $110,000
(B) $44,000
(C) $440,000
(D) $176,000
Explanation:
Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock
Sub corporation pays out 40% of net income of dividend each year
(A) Parent's Co's share of Sub's Co's net income for the year is $110,000
(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000
(C) The total net income can be calculated as follows
= 110,000 ×100/25
= 11,000,000/25
= $440,000
(D) The total dividend for the year can be calculated as follows
= 440,000 ×40/100
= 440,000 × 0.4
= $176,000
The economic principle of substitution says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first.
<h3>The economic principle of substitution</h3>
- According to the principle of substitution, the cost of purchasing a substitute that is just as desired tends to establish the upper limit of value, assuming no inopportune delays.
- A shrewd investor would not spend more on an asset that generates income than it would cost to construct or buy an asset of a similar nature.
- According to this theory, the cost of acquiring a comparable substitute property with the same use, design, and revenue determine the maximum value of a property in most cases.
- For instance, why would somebody pay $1,000,000 for a home when they could pay $750,000 for a different but as appealing home in the same neighborhood?
To learn more about the economic principle of substitution refer to:
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Ddddddddddddddddddddddddddddddddd
Answer:
93 units
Explanation:
Annual demand for an item = 11,000 units
cost per unit = $250
holding rate = 10%
Order cost = $14.00 per order
No. of days in a year = 260
Lead-time = 2 days
= 42.3 units
For a service level of 97%, the value of z is 1.881
Therefore,
Reorder point:
= Average daily demand × Lead time + Standard deviation of the daily demand × no. of standard deviation corresponding to service level probability × 
= (42.3 × 2) + (3 × 1.88 × 
)
= 92.57
= 93 units
