FORM utility is usually provided by producers rather than marketers.
Form utility involves changing raw materials or putting together different parts and turning them into something more useful and of higher value.
For example, the raw material is a tree and form utility involves cutting it down and using the lumber into making wood furniture, pencils, paper, and other wood based products to be sold to consumers.
Answer:
a. $8,000.
Explanation:
The computation of the amount of overhead cost assigned to the product I is shown below:
= $40,000 ÷ 2,500 × $500
= $8,000
Hence, the amount of overhead cost assigned to the product I is $8,000
Therefore the correct option is a.
Mortgage is the loan you get and repay on a house
Its definitely not rent
Answer:
Stock Price of LeBlanc in four years = $37.517
Explanation:
Dividend Discount model is as follows:
Where,
= Price of share at end of four years
= Dividend to be paid at end of 5th year
= return on equity or cost of equity
g = growth rate
Now we have the information as follows:
Dividend at 5th year end = ((($3 per share + 3%) + 3%) + 3%) +3% = 3.765
Cost/ Return on equity = 12%
Growth rate = 3%
Therefore price =
=
Stock Price of LeBlanc in four years
= $37.517
Answer: All Variables will remain unchanged
Explanation:
Monetary Policy has no effect on a country's domestic currency because it is simply ineffective when it is in a fixed exchange rate regime. This is because, when monetary policy is used, it tends to change the exchange rate but because the Fed will be engaging in a fixed exchange regime, it will act to normalise the exchange rate which will bring the currency back to equilibrium.
For instance, if the Fed embarks on expansionary monetary policy and pegs its currency to the Euro. The expansionary policy will lead to a drop in interest rates which is supposed to help GDP. However as a result of lower rates, the dollar will depreciate and more people will demand Euros. The Fed will intervene to keep the Euro and the Dollar at the same level (fixed exchange) and sell Euros in its reserves while reducing dollars. This will bring the interest rate and currencies back to its original level so there will be no benefit.
Monetary policy is ineffective under a Fixed Rate regime so one of the variables will change.