Answer:
The answer is:
Helps the government and a homeowner with a fixed-rate mortgage
But hurts a union worker in the second year of a labor contract and a college that has invested some of its endowment in government bonds
Explanation:
The government: This unexpected Increase in inflation help the government in the sense that it reduces the real value of government debts(it erodes the purchasing power of the debtors). It also increases the tax revenue.
A homeowner with a fixed-rate mortgage: This unexpected Increase in inflation also pays this category because the interest rate he is paying for his mortgage is less than the prevailing interest rate.
A union worker in the second year of a labor contract: This unexpected increase hurts this worker because the terms of the contract would have been based on the expected inflation rate(3%) but for this unxpected increase, its purchasing power will be eroded.
A college that has invested some of its endowment in government bonds: It hurts the college because higher inflation rate means the college is receiving a lower interest payment from the bond.
the answer is false, hope this helps
Answer:
B. the excess of sales over the break-even volume of sales.
Explanation:
The formula to compute the margin of safety is shown below:
The margin of safety = Expected sales - break-even sales
where,
Expected sales = Selling price per unit × Unit sales
And, the break-even sales equal to
= (Fixed cost) ÷ (Contribution margin Ratio)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
Answer
the second choice is the better deal
Explanation:
Answer: expenses to be understated
Explanation:
