Answer:
The correct answer: financial investment; not included.
Explanation:
The bonds and stocks securities or financial instruments. The investment in these instruments is called a financial investment.
The value of these financial investments derived from sell and purchase of stocks/bonds is not included in GDP as it does not involve any production.
The GDP of an economy measures the value of production of final goods and services in an economy.
Answer:
It is more convenient to continue processing.
Explanation:
Giving the following information:
Grace Co. can further process Product B to produce Product C. Product B is currently selling for $60 per pound and costs $38 per pound to produce. Product C would sell for $95 per pound and would require an additional cost of $13 per pound to produce.
To determine the convenience of further processing we need to calculate the contribution margin:
CM= selling price - unitary variable cost
Product B= 60 - 38= 22 per unit
Product C= 95 - 38 - 13= 44 per unit
Answer:
8%
Explanation:
The formula and the computation of the price elasticity of supply is shown below:
Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)
where,
Price elasticity of supply = 0.4
And, the percentage change in price = 20%
So, the percentage change in quantity supplied is
= Price elasticity of supply × the percentage change in price
= 0.4 × 20%
= 8%
It shows a direct relationship between the quantity supplied and the price.
Answer:
$14
Explanation:
Fee from customers = $4
Fee from producer = $10
Total Fee income received = 10+4 = $14
$14 should be recognized as income for each Riverdance ticket sold.
Ticket Now has sold the ticket (which is assumed to be nonrefundable) and it has performed what is required (to sale the tickets), so recognize the revenue of $14.
Answer:
- ($51,306)
Explanation:
Given that,
Loss of Contribution = $75,000
Fixed costs will be eliminated by dropping the CUP line = $23,694
Net loss on dropping cup line:
= Loss of contribution - Gain on fixed costs on dropping cup line
= $75,000 - $23,694
= - ($51,306)
Therefore, the net effect on dropping the cup line on net income is $(51,606).