Answer:
$201,300
Explanation:
Carter Company
Computation of the residual income for the division
First step
Using this formula
Sales -Cost of goods sold- expenses
Operating
Let plug in the formula
$4,555,000 - 2,580,000 - 1,402,000
= $573,000
Second step
Now let find the Residual Income
Residual income =$573,000 - ($4,130,000 * 9%)
Residual income = $573,000-$371,700
Residual income =$201,300
Therefore the residual income for the division will be $201,300
Answer:
Private Property - The right of private persons and firms to obtain, control, employ, dispose of, and bequeath land, capital, and other property.
Freedom of enterprise - The freedom of firms to obtain economic resources, decide what products to produce with those resources, and sell those products in markets of their choice.
Mutually agreeable - Economic transactions willingly undertaken by both the buyer and the seller because each feels that the transaction will make him or her better off.
Freedom of choice - The freedom of resource owners to dispose of their resources as they think best; of workers to enter any line of work for which they are qualified; and of consumers to spend their incomes in whatever way they feel is most appropriate.
Self-interest - What each individual or firm believes is best for itself and seeks to obtain.
Competition
- The presence in a market of independent buyers and sellers who compete with one another and who are free to enter and exit the market as they each see fit.
Market - An institution that brings buyers and sellers together.
Answer:
The three major macroeconomic goals of an economy should be economic growth, low unemployment/full employment, and low inflation rates. Economic growth occurs when an economy ‘increases its ability to produce goods and services’
Explanation:
Answer:
Anita uses <em>Consumer Price Index (CPI) </em>as the term to describe the change in the price level from year one to year two.
Explanation:
<em>Since Inflation is measured as the rate of change of those prices from 9% in year 1 to 5% in year 2. The most well-known indicator of inflation is the</em> <em>Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.</em>
<em>Therefore, the Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them</em>
Answer:
The correct answer is letter "B": is the same as the performance of Gator Fund.
Explanation:
Named after American economist William F. Sharpe (born in 1934), the Sharpe ratio is the average return obtained over the risk-free rate per unit of total risk. The Sharpe Ratio is calculated subtracting the risk-free rate from the return of the portfolio and dividing that result between the standard deviation of the portfolio's excess return.
In that case, if both Buckeye and Gator funds have the same average return and standard deviation returns their performance should be similar.
