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lorasvet [3.4K]
3 years ago
8

Analyzing macroeconomic events with the IS curve (II):

Business
1 answer:
horsena [70]3 years ago
4 0

Answer and explanation:

a)  

This investment tax credit will lead to a surge in the investment demand, because of the benefits that the firms receive from the investment tax credit. More and more firms will undertake investments leading to an increase causing the IS curve to shift to the right.  

<em>This implies that the output and GDP will increase in the short run.  </em>

(check image file 1 attached)

b)  

The increase in the demand for US goods will lead to an increase in the capital inflow for the country, the exports will increase, and the IS curve will shift to the right.  

<em>This implies that the output and GDP will increase in the short run</em>

(check the attached image file 2)

c)  

US consumers' infatuation with goods and services from New Zealand is going to increase the imports of the country. While it may also reduce the domestic consumption spending. This, however, will affect the country by shifting its IS curve to the left.  

<em>This implies that the output and GDP will decrease in the short ran.  </em>

(check image file 3)

d)  

Though the prices of the houses will fall sharply, increasing the affordability of the houses but the confidence of the people in real estate will be shaken. This would lead to a fall in the housing investment. This fall in investment will shift the IS curve to the left.  

<em>This implies that the output and GDP will decrease in the short run.</em>

check image file 4

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The inventory of Cullumber Company was destroyed by fire on March 1. From an examination of the accounting records, the followin
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Answer:

a. Merchandise lost by fire value  = $20,760

b. Merchandise lost by fire value  = $25,770

Explanation:

Net sales = $51,000 - $1,100

= $49,900

Net purchase cost = $31,000 + 1,200 - $1,500

= $30,700

a. Gross profit = $49,900 × 40%

= $19,960

Cost of goods sold = $49,900 - $19,960

= $29,940

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $29,940 = $20,000 + $30,700 -  ending inventory

Ending inventory = $20,760

Merchandise lost by fire value  = $20,760

b. Gross profit = $49,900 × 30%

= $14,970

Cost of goods sold = $49,900 - $14,970

= $34,930

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $34,930 = $30,000 + $30,700 - ending inventory

ending inventory = $25,770

Merchandise lost by fire value  = $25,770

5 0
3 years ago
Outsourcing of jobs from large corporations to domestic subcontractors has been one reason job have been become more insecure in
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Answer:

a. true

Explanation:

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When a company is outsourced, it engages the service of another company (third-party) to perform some of its duties rather than the use of an in-house department or employees to handle them. The outsourcing firm is saddled with the responsibility of physically distributing the goods or services of the outsourced company.

Hence, outsourcing simply means the use of supply chain partners of a large corporation to provide products or services for the end users or consumers.

In the United States of America, outsourcing of jobs and services from large corporations to domestic subcontractors (outsourcing companies) is one of the main reason job have become more insecure recently.

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3 years ago
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Construct a list of five common materials such that if a material "lower" on the list is rubbed against a material "higher" on t
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Answer:

Explanation:

   glass , wool , hair , silk , ebonite , rubber  

On this series , material lower on the list acquires negative charge when rubbed with material on the upper end of the list.

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3 years ago
Two people are trying to work out a trade. One person has apples and the
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Answer:

Measure of Value

Explanation:

The function of money being illustrated is known as a Measure of Value. This is basically when an item's monetary values are compared when making a trade. In this scenario, both the apples and pineapples are being compared based on their monetary value. Since a single pineapple is worth twice the amount of money that a single apple is worth. Then that means that a fair trade would be two apples for every pineapple which would be a trade of the same amount of monetary value.

7 0
3 years ago
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo
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Answer:

Wingate Company

1. Contribution Format

Segmented Income Statement

For the most recent month

                                                 East            Central         West        Total

Sales                                     $408,000   $650,000   $580,000 $1,638,000

Variable expenses as a

percentage of sales              208,080      227,500      243,600      679,180

Contribution margin            $199,920   $422,500    $336,400  $958,820

Traceable fixed expenses $280,000    $333,000   $204,000    $817,000

Non-traceable fixed expenses                                                        238,000

Net income                          ($80,080)     $89,500    $132,400    ($96,180)

2. The company's net operating loss will decrease by $28,824.

Explanation:

a) Data and Calculations:

WINGATE COMPANY

Income Statement for the most recent month

Sales                                    $1,638,000

Variable expenses                   679,180

Contribution margin               958,820

Fixed expenses                   1,055,000

Net operating income (loss) $(96,180)

Division

                                                 East            Central         West        Total

Sales                                    $408,000   $650,000   $580,000  $1,638,000

Variable expenses as a

percentage of sales                   51%            35%            42%

Traceable fixed expenses $280,000   $333,000   $204,000     $817,000

Non-traceable fixed expenses                                                        238,000

West Division:

Traceable fixed costs = $229,000 ($204,000 + $25,000)

Sales revenue = $672,800 ($580,000 * 1.16)

Variable expenses = $282,576 ($672,800 *42%)

1. Contribution Format

Segmented Income Statement

For the most recent month

                                                 East            Central         West        Total

Sales                                     $408,000   $650,000   $580,000 $1,638,000

Variable expenses as a

percentage of sales              208,080      227,500      243,600      679,180

Contribution margin            $199,920   $422,500    $336,400  $958,820

Traceable fixed expenses $280,000    $333,000   $204,000    $817,000

Non-traceable fixed expenses                                                        238,000

Net income                          ($80,080)     $89,500    $132,400    ($96,180)

2. Contribution Format

Segmented Income Statement

For the most recent month

                                                 East            Central         West        Total

Sales                                     $408,000   $650,000   $672,800 $1,730,800

Variable expenses as a

percentage of sales              208,080      227,500      282,576       718,156

Contribution margin            $199,920   $422,500    $390,224 $1,012,644

Traceable fixed expenses $280,000    $333,000   $229,000  $842,000

Non-traceable fixed expenses                                                        238,000

Net income                          ($80,080)     $89,500     $161,224   ($67,356)

Decrease in net operating loss = $28,824 ($96,180 - $67,356)

7 0
3 years ago
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