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viva [34]
3 years ago
8

Based on the real interest rate, who tends to benefit from unanticipated inflation in terms of borrowing and lending?

Business
1 answer:
kiruha [24]3 years ago
5 0
Borrower benefits from inflation .
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Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p
amm1812

Answer:

a. For Bulb = $183,418.92

b. For Seed = $96,759.49

c. Break even = $336,144.74

Explanation:

Sales = Bulb Division + Seed Division

= $234,000 + $156,000

= $390,000

Variable Expense = Bulb Division + Seed Division

= $60,840 + $32,760

= $93,600

Contribution margin for bulb = Sales - Variable

= $234,000 - $60,840

= $173,160

Contribution margin for Seed division = Sales - Variable

= $156,000 - $32,760

= $123,240

Total = $390,000 - $93,600

= $296,400

Division Income for bulb = contribution margin - Traceable fixed expenses

= $173,160 - $135,730

= $37,430

Division Income for seed division = contribution margin - Traceable fixed expenses

= $123,240 - $76,440

= $46,800

Total of Division income = $296,400 - $212,170

= $84,230

Common Fixed expenses = $25,980 + $17,320

= $43,300

Income = Total of Division income - Common Fixed expenses

= $84,230 - $43,300

= $40,930

Contribution margin ratio for bulb = Contribution ÷ Sales × 100

= $173,160 ÷ $234,000 × 100

= 74.00%

Contribution margin ratio for seed = Contribution ÷ Sales × 100

= $123,240 ÷ $156,000 × 100

= 79%

Total Contribution margin ratio for bulb and seed  = Contribution ÷ Sales × 100

= ($173,160 + $123,240) ÷ $390,000 × 100

= $296,400 ÷ $390,000 × 100

= 76%

a and b. Division’s break-even in sales dollars = Fixed costs ÷ Contribution margin ratio

For Bulb = $183,418.92

For Seed = $96,759.49

c. company’s overall break - even in sales dollars

= (212170 + 43300) ÷ 76%

= $336,144.74

5 0
3 years ago
Stockholders of a company may be reluctant to finance expansion through issuing more equity because leveraging with debt is alwa
lianna [129]

Answer:

Their earnings per share may decrease.

Explanation:

Shareholders of a company may be reluctant to finance expansion through issuing more equity because Their earnings per share may decrease and at the same time debt is always better option to finance.

4 0
3 years ago
quizlet If a country can produce more of a good or service, it has a(n) advantage. If the country can produce a good or service
poizon [28]

If the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.

<h3>What is comparative advantage?</h3>
  • In an economic model, agents have a comparative advantage over others if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to the trade.
  • Comparative advantage describes the economic reality of trade advantages for people, firms, or nations as a result of disparities in their factor endowments or technological progress.
  • (The absolute advantage, comparing output per time (labor efficiency) or per quantity of raw material (monetary efficiency), is typically considered more intuitive but less accurate – productive trade is possible as long as the opportunity costs of manufacturing commodities vary between countries.)

Therefore, if the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.

Know more about comparative advantage here:

brainly.com/question/14846093

#SPJ4

7 0
2 years ago
What is one of the advantages of buying an existing business
Sloan [31]
Here are several advantages to buying an existing business; Immediate cash flow, existing costumers, suppliers, and financial history.
7 0
3 years ago
When the effective-interest method of bond discount amortization is used,
SSSSS [86.1K]

Answer: C. interest expense will not be a constant dollar amount over the life of the bond.

Explanation:

When a bond is sold at a discount, the discount will have to be amortized over the life of the bond to ensure that it reaches par at maturity.

As a result, the interest expense will be based on a larger figure every year which would mean that it would have to be larger each time. t will therefore not be a constant dollar amount over the life of the bond.

6 0
3 years ago
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