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3 years ago

Classify each of the following based on the macroeconomic definitions of saving and investment.

Business

1 answer:

Serga [27]3 years ago

3 0

Answer and explanation:

Saving implies setting an amount of money of your income aside and put it into a bank account or store it somewhere considered safe. If deposited in a bank the money gains interest, thus, there will be a relative increase in the initial sum deposited.

Investing implies providing money to a third party or using that money personally to start up a venture. In such cases, there is a risk that the investment could be lost.

Thus:

A) Ginny buys new bulldozers for her construction firm. (<em>Investment</em>)

B) Eric purchases a certificate of deposit at his bank. (<em>Saving</em>)

C) Kenji takes out a mortgage for a new home in Detroit. (<em>Investment</em>)

D) Lucia purchases stock in Pherk, a pharmaceutical company. (<em>Saving</em>)

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An entrepreneur purchased an existing bicycle shop that had between $120,000 and $150,000 worth of sales annually for the past t

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Answer:

Forecasted sales: 25% maximum reduction.

Recommendations: try new ways to increase sales during the months left, or reduce its own cost.

Explanation:

If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
Between March 1 and June 30 there are 4 months.
If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
Therefore, revenues may lower by 25% this year.
To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.

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3 years ago

The ACME manufacturing company is weighing its options to source Component X. Supplier A would cost $3000 per order plus $2.50 f

raketka [301]

Question Completion:

Since the options are not provided, it is assumed that ACME requires 2,000 units of Component X monthly. Which supplier should the company choose?

Answer:

ACME Manufacturing Company

The supplier that should be chosen is:

Supplier A.

Explanation:

a) Data and Calculations:

Quantity of component X required monthly = 2,000 units

Cost of buying from supplier A = $3,000 + ($2.50 * 2,000) = $8,000

Cost of buying from supplier B = $6 * 2,000 = $12,000

Cost of buying from supplier C = $5 * 2,000 = $10,000

b) This cost decision depends on the quantity of component X required by ACME manufacturing. If the quantity were to be less than or equal to 1,100 units, another supplier other than supplier A might be preferred. Again, if there are other considerations apart from cost, supplier A might not be chosen. The implication is that the choice of a supplier for a component depend on many factors.

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3 years ago

Why might the unemployment rate underestimate the underutilization of labor resources? The unemployment rate might underestimat

DaniilM [7]

Answer:

marginally attached staff and part-time staff that hope on getting full-time jobs

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3 years ago

George’s t-shirt shop produces 5,000 custom printed t-shirts per month. george’s fixed costs are $15,000 per month. the marginal

k0ka [10]

Answer: Price is $7 when sale is 5000 and $6 when sale is 7,500 units.

Explanation:

$Total cost of George = Fixed cost + Variable Cost = $15,000 + $4 (Units produced) = $15,000 + $4(5000) $15,000 + $20,000 = $35,000$

George will breakeven when his price is just sufficient to cost the total cost.

$Break even = Profit = 0 Total revenue - Total cost = 0 P*Q - $35,000 = 0 P*5000 = $35000 P= $35,000/5000 P=$7$

If George sells 50% more, then his sales is 7,500 units.

$Total cost of George = Fixed cost + Variable Cost = $15,000 + $4 (Units produced) = $15,000 + $4(7,500) $15,000 + $30,000 = $45,000$

George will breakeven when his price is just sufficient to cost the total cost.

$Break even = Profit = 0 Total revenue - Total cost = 0 P*Q - $45,000 = 0 P*7500 = $45000 P= $45,000/7,500 P=$6$

When sales is 5000 units price is $7. When sales is 7,500 units price is $6.

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3 years ago

On October 31, 2016, the following data was accumulated to assist the accountant in preparing the adjusting entries for Dependab

strojnjashka [21]

Journal entries record all transactions for a business. Transactions made on October 31, 2016 are recorder in the journal.

<h3>What is journal entry?</h3>

A journal entry is used to record a business transaction in the accounting records of a business.

The following journal entries are as follows-

A). Accounts Receivable Dr. $9,670

To Fees Earned Cr. $9,670

(Accrued fees earned)

B). Supplies Expenses Dr. $2270

To supplies Cr. $2270

(Supplies used $3,180- $910)

C). Wages expenses Dr. $1,220

To wages payable Cr. $1,220

(Accrued wages)

D). Unearned rent Dr. $3,160

To Rent revenue Cr. $3,160

(Rent earned 9,480/3 months)

E). Depreciation expenses Dr. $1,610

Accumulated Depreciation - Equipment $1,610

(Depreciation expenses)

Above mentioned are the journal entries to be made for Dependable Realty.

Learn more about the journal entries here:-

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1 year ago