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4 years ago

What is real GDP per capita, and why do economists measure it?

Business

1 answer:

Shtirlitz [24]4 years ago

3 0

Answer:

Real GDP per capita is a measurement of the total economic output of a country divided by the number of people and adjusted for inflation. It's used to compare the standard of living between countries and over time.

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Which aspect is an essential feature of a joint venture between two companies that come together for global trade?

dolphi86 [110]

Answer:

D. joint equity ownership

Explanation:

The aspect that is an essential feature of a joint venture would be joint equity ownership. That is because in a joint venture all parties combine all of their resources and share in both the liability and profits of the company. Joint Equity Ownership is the main part of this as it explains how these companies joint their assets in order to make as much profit as possible from their business venture.

4 0

3 years ago

This year, Major Healy paid $40,000 of interest on a mortgage on his home (he borrowed $800,000 to buy the residence in 2015; $9

icang [17]

Answer:

$50,000

Explanation:

The computation of the interest expense for deduction is shown below:

= Interest on a mortgage on his home + Interest on a mortgage on his vacation home

= $40,000 + $10,000

= $50,000

All other information which is given in the question is not relevant for the computation part. Hence, ignored it

We simply add both types of interest related to a mortgage on the home

5 0

3 years ago

Partial balance sheets and additional iformation are listed below for Sowell Company.

musickatia [10]

Answer and Explanation:

The preparation of the operating activities section is presented below

Cash Flows from operating activities

Net Income $88,000

Adjustment made for non cash items:

Depreciation Expense $19,000

Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)

Less: Increase in Inventory $(5000) ($40,000 - $35,000)

Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)

Net cash flows from operating activities $109,000

3 0

3 years ago

Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement sta

Elis [28]

Answer:

a. Profit = $780,000

b. Profit = $3,780,000

c. Loss = $2,220,000

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $220,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price

a. $5 per share

b. $6 per share

c. $4 per share

The explanation of the answer is now given as follows:

The profit or loss can be calculated using the following formula:

Profit or loss = Sales proceed - Net proceeds to Beedles - Out-of-pocket expenses incurred by Security Brokers ........... (1)

Where;

Sales proceed = Average price * Number of shares = Average price per share * 3,000,000

Net proceeds to Beedles = 14,000,000

Out-of-pocket expenses incurred by Security Brokers = $220,000

We can proceed as follows:

a. profit or loss at average price $5 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($5 * 3,000,000) - $14,000,000 - $220,000 = $780,000 profit

b. profit or loss at average price $6 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($6 * 3,000,000) - $14,000,000 - $220,000 = $3,780,000 profit

c. profit or loss at average price $4 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($4 * 3,000,000) - $14,000,000 - $220,000 = -$2,220,000 loss

3 0

3 years ago

Break-Even Sales Under Present and Proposed Conditions

solong [7]

Answer:

<h3>Portmann Company</h3>

1. Total variable costs = $89,000,000

Total fixed costs = $40,600,000

2. a Unit variable cost = $89

b. Unit contribution margin = $100

3. Break-even sales (units) = Fixed cost/Contribution margin per unit

= $40,600,000/$100

= 406,000 units

4. Break-even sales (units) = Fixed cost/Contribution margin per unit

= $45,100,000/$100

= 451,000 units

5. Break-even sales (units) to achieve target profit = (Fixed cost + Target Profit)/Contribution margin per unit

= ($45,100,000 + $59,400,000)/$100

= 1,045,000 units

6. Maximum operating income possible with the expanded plant is:

= $61,900,000

7. Operating income if the proposal is accepted and sales remain at the current level is:

= $54,900,000

Explanation:

a) Data and Calculations:

Sales volume during current year = 1,000,000

Sales price per unit during current year = $189

Income statement is as follows:

Sales $189,000,000

Cost of goods sold (101,000,000)

Gross profit $88,000,000

Expenses:

Selling expenses $16,000,000

Administrative expenses 12,600,000

Total expenses (28,600,000)

Operating income $59,400,000

Variable Fixed

Cost of goods sold 70% 30%

Selling expenses 75% 25%

Administrative expenses 50% 50%

Total variable costs for the current year:

Variable

Cost of goods sold 70% * $101,000,000 = $70,700,000

Selling expenses 75% * $16,000,000 = 12,000,000

Administrative expenses 50% * $12,600,000 = 6,300,000

Total variable costs = $89,000,000

Variable unit cost = $89 ($89,000,000/1,000,000)

Contribution per unit = $100 ($189 - $89)

Total fixed costs for the current year:

Fixed

Cost of goods sold 30% * $101,000,000 = $30,300,000

Selling expenses 25% * $16,000,000 = 4,000,000

Administrative expenses 50% * $12,600,000 = 6,300,000

Total fixed costs = $40,600,000

Projected sales for the next year = $202,230,000 ($189,000,000 + $13,230,000)

Percentage Increase in sales for the next year = $13,250,000/$189,000,000 * 100 = 7%

Fixed costs caused by expansion = $4,500,000

Total fixed costs = $45,100,000 ($40,600,000 + $4,500,000)

Variable costs = $95,230,000 ($89,000,000 * 1.07)

Contribution margin:

Sales $202,230,000

Variable costs 95,230,000

Contribution margin $107,000,000

Expenses:

Fixed costs 45,100,000

Operating income $61,900,000

Sales volume = 1,070,000 units (1,000,000 * 1.07)

Contribution per unit = $107,000,000/1,070,000 = $100

Sales at current level:

Sales $189,000,000

Variable costs 89,000,000

Contribution $100,000,000

Fixed costs 45,100,000

Operating income $54,900,000

6 0

3 years ago