Answer:
See below
Explanation:
With regards to the above information, the contribution margin is computed as seen below.
Contribution margin per composite unit = Selling price per composite unit - Variable cost per composite unit
= $150 - $50
= $100
Hence, the contribution margin per composite unit is $100
Answer:
Liability of un-redeemed coupons Pending on December 31, 2018 is $60,000
Explanation:
Coupon already expired issued on Jan 01, 2018
Coupon issued on 07/01/2018 <u>$830,000</u>
Estimated redeemable coupon value - 50% $415,000
($830,000 * 50%)
Less : Disbursed <u>$355,000</u>
Liability pending on Dec. 31, 2018 <u>$60,000</u>
Answer:
The correct answer is C)A decrease in the money supply and an increase in the interest rate.
Explanation:
The Discount Rate is the interest rate that the Fed charges to commercial banks for 24-hour or less loans. Commercial banks turn to the FED for these loans when they are in an emergency situation, and are about to lose all reserves, and suffer a bank failure. This is why the Discount Rate tends to be higher than the federal funds rate.
If the FED increases the discount rate in order to apply contractionary monetary policy, the effect will be first a decrease in the money supply because banks will have less incentive to loan, and if they loan less, they create less money (remember than in a fractional reserve banking system banks create money), and thus, the money supply falls.
Secondly, this policy results in a higher interest rate because the less money supply, the less available loans, and the higher the interest rate on those fewer loans.
Answer:
C. Cash equivalents are short-term, highly liquid investments that do not have either of the following characteristics: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates
Explanation:
U.S. GAAP defines cash equivalents as “short-term, highly liquid investments that are readily convertible to known amounts of cash and that are so near their maturity that they present insignificant risk of changes in value because of changes in interest rates” and includes a money market fund as an example of a cash
