Answer:
c. increase by $2,000
Explanation:
The computation of company net operating income is shown below:-
New amount for Store A variable expenses = Sales percentage × Store A sales
= 0.62 × $100,000
= $62,000
Change in net operating income = (Variable expenses of store A - New amount for Store A variable expenses) - Fixed expenses
= ($72,000 - $62,000) - $8,000
= $10,000 - $8,000
= $2,000 increase
Answer:
Annual Interest will be $1,103.21
Explanation:
Reinvesting on 1% per working will enable a fund manager to compound the earning to 250 trading days per year.
Use following formula to calculate the the amount investment after compounding 250 days.
F = P ( 1 + r/n )^n
n is the number of period in a year. and r/n is the interest per day which 1%.
F = 100 ( 1 + 0.01 )^250
F = $1,203.22
Return = $1,203.22 - $100 = $1,103.21
Another way:
Effective Annual rate = ( 1 + 0.01)^250 - 1
Effective Annual rate = ( 1.01)^250 - 1
Effective Annual rate = 11.0321 = 1,103.21%
F = 100 x 1103.21% = $1103.21
B) Experimental Exercises
Answer: implicit liabilities will increase.
Explanation:
Implicit liabilities are incurred by government as a result of them having to take care of their citizens. Medicaid is one such liability.
If the government were to expand the percentage of people in the country that are to be covered by medical aid, this would mean that more Medicaid will be paid by the government which means that the implicit liabilities will increase.
Answer:
input requirements per unit of output.
Explanation:
A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.
Country A has absolute advantage in the production of beans while country B has absolute advantage in the production of rice