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3 years ago

Changes in aggregate demand

Business

1 answer:

Lelu [443]3 years ago

4 0

Answer:

The correct answer is option B.

Explanation:

The aggregate demand comprises of consumption spending, investment expenditure, government purchases, and net exports. It is a downward-sloping curve which is inversely related to the price level.

Changes in aggregate demand are caused when there is a change in consumer spending, investment expenditure, government purchases or net exports, or all of them.

This basically means that aggregate demand is affected by the spending decisions of the households, businesses, the government, and foreign consumers.

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Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statem

inn [45]

Answer:

(a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)

total variable costs per unit = $1,750,000 / 500,000 = $3.50

sales price per unit = $2,500,000 / 500,000 = $5

contribution margin per unit = $5 - $3.50 = $1.50

total fixed costs = $850,000

break even point in units = $850,000 / $1.50 = 566,667 units

break even point in $ = 566,667 units x $5 = $2,833,335

(b) Compute the contribution margin under each of the alternative courses of action.

alternative 1) $6 - $3.50 = $2.50

alternative 2) $5 - $3.75 = $1.25

(c) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places and other calculations to 0 decimal places.)

alternative 1:

break even point in units = $850,000 / $2.50 = 340,000 units

break even point in $ = 340,000 units x $6 = $2,040,000

alternative 2:

break even point in units = $760,000 / $1.25 = 608,000 units

break even point in $ = 608,000 units x $5 = $3,040,000

Which course of action do you recommend?

If I had to choose between alternative 1 or 2, I would choose alternative 1.

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3 years ago

Draw a curve that shows the relationship between the tax rate and the amount of tax revenue collected. The relationship between

maw [93]

Answer:

Laffer curve.

Explanation:

Laffer Curve is developed by

Arthur Laffer. It is used to show the relationship between tax rates and the amount of tax revenue collected by governments of a particular country. Laffer curve is used to demonstrate Laffer’s argument that sometimes cutting tax rates can increase total tax revenue.

Laffer curve shows the relationship that occurs between the tax rate and the amount of tax revenue collected

The relationship between the tax rate and the amount of tax revenue collected is called the LAFFER CURVE curve. This curve shows that TAX CUT CAN INCREASE TAX REVENUE.

The drawing of a laffer curve has been attached

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3 years ago

Quickbooks Online. IRS guidelines require specific information to substantiate deductible automobile expenses. Which 3 items are

VikaD [51]

Answer:

✓Vehicle type

✓date placed in service

✓total mileage (including business, commuting and personal)

Explanation:

IRS guidelines available for automobile

deductible is that if one is using his cat for business purposes, the entire cost of ownership as well as operation can be deducted. But if the car is for business and personal purposes, the cost for the business use can be deducted.

The three items that are are included in the substantiation requirements are;

✓Vehicle type

✓date placed in service

✓total mileage (including business, commuting and personal)

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3 years ago

In 2020, the Merkel Company had revenues of $2,600,000 and costs of $2,100,000. During 2021, Merkel will be introducing a new pr

Artemon [7]

Answer:

d. $88,000

Explanation:

In 2020, Merkel company's

Revenue = $2,600,000

Cost = $2,100,000

Operating profits = Revenue - Cost

= $2,600,000 - $2,100,000

= $500,000

In 2021, the company's;

Revenue increases by $260,000

New revenue = $260,000 + $2,600,000 = $2,860,000

New Cost = $2,100,000 + $172,000 = $2,272,000

New Operating profits = $2,860,000 - $2,272,000

= $588,000

Expected increase in Operating profits = $588,000 - $500,000

= $88,000

The expected increase in operating profit amounts to $88,000.

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3 years ago

Shyla conducted an experiment. she went to the student union and asked people if they would like to be subjects in her study. sh

Assoli18 [71]

No!
It's biased. Grumpy people have a right to have their opinions known just as well as cheerful people. Grumpy looks are momentary. They can be brought about (especially at a University) by math problems that are illusive, by girl friends (or boy friends), that are illusive, by something for lunch that was barely edible, by any number of things.

She should ask people on some sort of other scale that is more random.

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3 years ago