If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.
The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.
If the monetary multiplier is 5, the required reserve ratio is 20%.
Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).
Answer:
$36
Explanation:
The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price.
Selling price is $60
Contribution margin per unit?
The total sales in dollar value are $15,000, The sales in units equal to
=$15,000 /60
=250 units
Total variable costs will include variable manufacturing cost plus variable selling and administrative costs
=$4000 + $2000
=$6000
variable cost per unit will be the total variable cost divide by units produced
=$6000/250
=$24
Contribution margin per unit = $60- $24
=$36
Answer:
If the present bus is repaired, the present value of the annual cash operating costs associated with this alternative is calculated as follows;
Explanation:
22
3 25
6 15
a. Determine which variable is the dependent variable.
b. Compute the least squares estimated line.
c. Compute the coefficient of determination. How would you interpret this value
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