Answer:
Capital Gain
Explanation:
The second way of making money from buying bonds is to sell them at a higher price than you bought them. Like other securities, bond prices fluctuate due to several factors. If the company that sold you the bold is performing well, the bonds will gain in value. Selling the bonds through a broker will result in profits.
For example, If you bought bonds worth $5000 at face value, it means you paid $5000 for them. If the market value increase to $6000, selling the bonds will make you a profit of $1000
Answer:
1)
B. more reserves, thus increasing the money multiplier and increasing the money supply.
In a fractional-reserve banking system, banks create money when they make loans. The more money they have available to make loans, the more money they create.
If the Fed reduces the reserve-requirements, banks will have more reserves available to loan out, increasing the money multiplier, and thus, the money supply.
2)
A. rarely changes the reserve requirement and does not use the reserve requirement as a major monetary policy tool.
The Fed rarely uses this monetary policy tool because it is the most powerful one. Changing the reserve requirements effectively reduce or increase the money supply like no other monetary policy tool, therefore, the effects can be dramatic, and its use is a sign that all other tools have been exhausted (open-market operations, and discount window mainly).
Explanation:
Answer:
b) $0.40 per unit and $8,000.
Explanation:
The computation of the high-low method, the variable cost per unit and the total fixed costs is given below:-
Total Cost Production Units
April $120,000 280,000
May $74,000 165,000
June $90,900 230,000
Using High Low method
Variable Cost per unit = (High Cost - low Cost) ÷ (High Cost Units - low Cost Units)
= ($120,000 - $74,000) ÷ (280,000 - 165,000
)
= $46,000 ÷ 115,000
= $0.40
Fixed Cost = Total Cost - Variable Cost per unit × Production unit
= $120,000 - $0.40 × 280,000
= $8,000
Answer:
$119,200
Explanation:
The Absorption Costing method is recommended by GAAP or IFRS for financial reporting instead of Variable Costing method.
Thus to calculate product costs under absorption costing, we add the total of all manufacturing costs (Variable and Fixed),
Non - Manufacturing costs are treated as Period Costs which are expensed in the Income Statement.
Direct materials ($ 5.30 x 8,000 units) $42,400
Direct labor ($ 3.75 x 8,000 units) $30,000
Variable manufacturing overhead ($ 1.35 x 8,000 units) $10,800
Fixed manufacturing overhead $ 36,000
Total Product Cost $119,200
therefore,
The total amount of product costs incurred to make 8,000 units is $119,200.
