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faltersainse [42]
3 years ago
10

Phillip is a real estate investor. He flips homes: He buys undervalued homes and sells them at a higher price later to make a pr

ofit out of the price difference (these kind of people are called flippers). He does not do any repairs to the houses he buys. In May 2020 he bought a house built in 1997 for $1,300,000 and sold it two months later for $1,500,000. Not bad.! The real estate agent got 6% of the sale price as her commission. As a result of these transactions, the 2020 GDP increased by_________ dollars.
Business
1 answer:
FrozenT [24]3 years ago
5 0

Answer:

90,000

Explanation:

Recall that, GDP which is the gross domestic product is the total monetary value of all final goods and services produce within a country geographical boundary for a period of time say one year.

In this case, since the house was built in 1997, it can't be counted as part of 2020 GDP as sale of second hand houses isn't included in GDP.

However, the commission received by the agent can be added to the current GDP.

Thus

Given that

Commission = 6% = 0.06

Sale price = 1500000.

Thus, agent fee in dollars

= 0.06 × 1500000

= $90,000

Therefore, $90,000 will be included in the GDP.

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What will happen if the current asset price is greater than the present value of income? Question 2 options: Buyers will bid the
Inessa05 [86]

Answer:

The answer is:  Buyers will bid the asset's price down until it equals the present value of income.

Explanation:

As the current asset price is greater than the present value of income, it is overpriced.

So, seller is much willing to sell at this price, however, buyers does not want to buy asset at this price as they only want to purchase it at the price equals to the present value of its income.

So, Buyers will bid the asset's price down until it equals the present value of income which is the level they are willing to buy and also at which the seller is willing to sell also.

5 0
3 years ago
Blake’s Manufacturing sells unfinished wood pieces for $150 each. The manager reported 280 defective wood pieces in inventory, w
mixas84 [53]

Answer:

$30,800

Explanation:

This can be calculated as follows:

Standard price revenue = $150 × 280 = $42,000

Original cost = $20 × 280 = $5,600

Defective sales revenue = $30 × 280 = $8,400

Extra processing cost = $10 × 280 = $2,800

Actual revenue forgo from defective sales = Defective sales revenue - Extra processing cost

Actual revenue forgo from defective sales = $8,400 - $2,800 = $5,600

Total incremental income = Standard price revenue - Original cost - Actual revenue forgo from defective sales

Total incremental income = $42,000 - $5,600 - $5,600 = $30,800

Therefore, the total incremental income from further processing is $30,800.

5 0
3 years ago
What does an effective business begin with?
Vilka [71]

Answer:

trust, rules and schedules, a plan on what your selling, those products

Explanation:

I'm just saying what I think makes an effective business

3 0
3 years ago
Use General Mills financial statements to answer questions in this section. All answers should be for the most recent fiscal yea
Firdavs [7]

Answer:

27.4 days

Explanation:

Accounts receivable turnover days :

365 / Receivable turnover ratio

Receivable turnover ratio :

Sales / Average accounts receivables

12,442,000,000 / 932,500,000 = 13.34

Account receivable turnover days :

365 / 13.34 = 27.4 days

3 0
2 years ago
Which sentences in the passage are true regarding the expenses involved in various stages of distribution?
castortr0y [4]

Answer:

The answers are the first and last sentence - "Storing and maintaining goods in a warehouse is a major cost in the distribution channel." & "Often, the retailer and manufacturer contribute to the expenses of store displays together, including end-of-the-aisle promotion."

Explanation:

According to Edmentum:

Warehousing: <u>In the distribution channel, storing and maintaining goods in a warehouse involves major cost.</u> Normally, wholesalers and distributors bear the cost of warehousing.

Delivery expenses: These expenses include the cost of transportation equipment, such as ships, trucks, and trains. Wholesalers usually use courier services to deliver goods to retailers.

Selling expenses: Retailers use various strategies to boost the sales of products in their stores. <u>Often, the retailer and manufacturer together contribute to the expenses of store displays, including end-of-the-aisle promotion.</u>

8 0
3 years ago
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