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dimulka [17.4K]
3 years ago
10

Alex manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday,

he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the:____of inflation.a. menu cost.b. shoe-leather costs.c. unit-of-account costs.
Business
1 answer:
statuscvo [17]3 years ago
3 0

Answer: b. shoe-leather costs

Explanation:

This is the shoe-leather cost inflation. It refers to the time and effort expended by people to ensure that they are able to avoid their cash losing too much value to inflation. Includes for instance, going to the bank multiple times because you are holding little cash on hand so it does not lose value.

It is named shoe-leather costs as a play on words because it is assumed that the time and effort put will result in walking around alot and degrading the quality of your shoes.

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Sensitivity analysis measures: Group of answer choices Changes in the depreciation tax shield over the life of the project Chang
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Beau Corporation sells a unit of its product for​ $250 per​ unit, while its variable costs per unit are​ $75. Fixed cost are bud
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Answer:

Number of units that must be sold to earn the target profit is 3000 units.

The contribution margin ratio is 0.70

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We will use the break even analysis modified for target profit to calculate the number of units needed to earn the desired

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Contribution margin per unit = 250 - 75  =  $175

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Tuity Fruity Beverage​ Company's operating activities for the year are listed below. Purchases ​$140 comma 700 Operating expense
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The cost of goods sold for the​ year is $134,300

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3 years ago
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