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3 years ago

If the MPC in an economy is 0.8, government could close a recessionary expenditure gap of $100 billion by cutting taxes by

Business

1 answer:

QveST [7]3 years ago

8 0

Answer:

cutting taxes by $125 billion

Explanation:

given data

economy = 0.8

expenditure gap = $100 billion

to find out

cutting taxes

solution

we get here cutting or reduce taxes that is express as

cutting taxes = $\frac{expenditure\ gap}{MPN\ economy}$ ......................... 1

cutting taxes = $\frac{100}{0.8}$

solve we get cutting taxes

cutting taxes = $125 billion

so cutting taxes by $125 billion

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TB MC Qu. 1-150 Haack Inc. is a merchandising company ... Haack Inc. is a merchandising company. Last month the company's cost o

Sever21 [200]

Answer:

$87,200

Explanation:

The computation of the total amount of merchandise purchase is shown below:

As we know that

Cost of goods sold = Beginning merchandise inventory + purchase of merchandise - ending merchandise inventory

$69,400 = $11,600 + purchase of merchandise - $29,400

$69,400 = -$17,800 + purchase of merchandise

So, purchase value of merchandise is

= $69,400 + $17,800

= $87,200

5 0

3 years ago

Stimpleton Company engages in the following cash payments:

choli [55]

Answer: Option A

Explanation: Operating activities refers to those activities which are directly related to the core operations of the business. Such transactions are important for running the business and recorded at the top in cash flow statements.

Thus, only payment of rent and workers salary will be considered operating activities and the company will be having total of $1750 of cash outflow.

Hence the correct option is A.

4 0

3 years ago

A cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that caus

blondinia [14]

Answer:

The correct answer is True.

Explanation:

This statement, a cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease, is correct.

These terms are mostly used in activity based costing (ABC) system.

Examples of Cost Object are material procurement costs, quality control costs, materal handling costs, line set up costs e.t.c.

Example of Cost drivers are number of purchase orders, number of inspections, numbers of set-ups e.t.c.

6 0

3 years ago

At the end of November, work in process inventory consists of 181,000 units that are 50% complete with respect to conversion. Be

Dafna1 [17]

Question Completion:

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process.

Answer:

Victory Company

Direct Materials Conversion

Equivalent units 886,000 795,500

Explanation:

a) Data and Calculations:

Direct Materials Conversion Cost

Beginning WIP Inventory $460,720 $178,988

Costs added in November 3,083,280 3,400,762

Total costs of production $3,544,000 $3,579,750

Production Process:

Beginning Inventory = 61,000

Started and completed 644,000

Units transferred out = 705,000

Ending WIP inventory 181,000

Units under process 886,000

Equivalent units of production:

Direct Materials Conversion

Units transferred out 705,000 (100%) 705,000 (100%)

Ending WIP Inventory 181,000 (100%) 90,500 (50%)

Total equivalent units 886,000 795,500

3 0

2 years ago

(A) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly revenu

vladimir1956 [14]

Answer:

2500 phones produced at $250 per phone

Max weekly revenue would be $625,000.

Explanation:

p = 500 - 0.1x

p is the price per unit

revenue = quantity * price/unit

R(x) = revenue = p(x)*x = 500x - 0.1x²

p(x) maximum when first derivative is set to 0

500 - 0.2x = 0 ==> x = 500/0.2 = 2500 quantities

price/unit : p = 500 - 0.1*2500 = 500 - 250 = 250

revenue :

r(2500) = 500*2500 - 0.1*2500²

r(2500) = 2500(500 - 250) = 625000

The company should produce 2500 phones each week at a price of $250

The maximum weekly revenue is $625000

6 0

3 years ago