Brian tried to persuade an unsatisfied customer to take a certain new line of action. After discussing Brian's plan, the

A firm that sells e-books - books in digital form downloadable from the Internet - sells all e-books relating to do-it-yours

vampirchik [111]

Answer:

Profit maximizing price of the firm = 50 cents

Average total cost of e-book = $10.5

Explanation:

As per the data given in the question,

Maximum annual profit = $35,000

It sells = 15,000 copies

Expense rate = 50 cent

Company must spend = $150,000

Here, Profit maximizing price of the firm = marginal cost (Expense rate)

So, Profit maximizing price of the firm = 50 cents

As per the following formula,

Average total cost = Total cost ÷ Quantity of output

= ((0.5 × 15,000) + $150,000) ÷ 15,000

= $10.5

6 0

2 years ago

The Federal Reserve conducts a $15 million open-market purchase of government bonds. If the required reserve ratio is 20 percent

Soloha48 [4]

Answer:

$200 million

$30 million

Explanation:

When the requiredreserce ratio is 15 percent or 0.15 , then the money multiplier is (1 / required reserve ratio) or (1/0.15 = 0.67)

Now, change in money supply = money multiplier * open market purchase of government bonds.

Here , the Federal Reserve a $30 million open market purchase Of govemment bonds.

As a result of this;

Money Supply increases by (6.7 * $30 million) = $200 million.

This is the maximum amount the money supply could Increase.

Now, if the bank holds. $30 million as excess reserves, then money supply could increase by as much as $30 million. This is the smallest amount themoney supply could increase.

So, If the required reserve ratio is 15 percent the largest possible increase in the money supply that could result is $200 million- and the smallest possible increase is $30 million.

8 0

3 years ago

Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not eff

Lera25 [3.4K]

Answer:

8.89%

Explanation:

The answer is 8.89%

Here is how we arrived at this.

Dividend = 1$ times 4

= $4 annually

Then we calculate for the nominal rate of return.

This is equal to dividend / price.

= $4/ $45

= 0.0889

To convert this to percentage

0.089 x 100

= 8.89% is the nominal annual rate of return.

3 0

3 years ago

A seller sold a house to a buyer allowing the buyer to take over the loan on a "subject to" basis. After 2 years, the buyer defa

lubasha [3.4K]

Answer:

A. The seller would be primarily liable.

Explanation:

Subject to basis is a form of home buying options in real estate. It is a situation where the buyer takes over existing loan of a seller and make commitment to seller to continue repaying the loan to the lender.

Though the buyer will taken over the loan from the seller and make repayment to the lender, there is no legal obligation on buyer`s part that makes him/her liable to the lender. The seller still remain liable despite the the taking over. So option A is right while B to D is wrong because it`s only the seller that is primarily liable to the lender.

4 0

3 years ago

Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made fro

il63 [147K]

Answer:

Determine the plantwide overhead rate for Laval using direct labor hours as a base.

1. Estimated overhead costs $800,000 $1.60 per direct labor hour

Estimated direct labor hours 500,000

2. Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.

Direct Labor - Assembly $188,500

Direct Labor - Fabricating 395,200

Direct materials 270,000

Overhead 34,720

Total manufacturing costs 888,420

Units produced 22000

Manufacturing cost per unit 40.38

3. Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.

Departmental overhead rate

Fabricating 390000/152000 = 2.57 MH

Assembly 410000/290000 = 1.41 DLH

4. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.

Direct materials 270000

Direct labor

Fabricating 188500

Assembly 395200

583700

0

Overhead

Fabricating (15000*2.57) 38550

Assembly (15200*1.41) 21432

59982

0

Total manufacturing cost 913682

Units produced 22000

Manufacturing cost per unit 41.53 per unit

8 0

3 years ago