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LuckyWell [14K]
3 years ago
6

Company A produces paper and sells it to Company B for a total of $183. Company B uses the paper to make books and then sells th

e books to consumers for a total of $342.What is the value of GDP in this simple economy?
Business
1 answer:
tester [92]3 years ago
4 0

Answer:

$159

Explanation:

Value = cost of books - cost of paper

342 - 183 = 159

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

the cost of paper is not included because it is an intermediate good and not a final good.

An intermediate good is a good that is used in the production of the final good.

If it is added to GDP, it would result in double counting

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Majid Corporation sells a product for $140 per unit. The product's current sales are 41,200 units and its break-even sales are 3
Andru [333]

Answer:

the margin of safety in dollars is $1,236,200

Explanation:

The computation of the margin of safety in dollars is shown below:

= Total sales - break even sales

= (41,200 units - 32,370 units) × $140 per unit

= $1,236,200

We simply deduct the break even sales from the total sales so that the margin of safety in dollars come

Hence, the margin of safety in dollars is $1,236,200

7 0
3 years ago
An example of automatic fiscal policy is Question 19 options: the unemployed automatically become eligible for unemployment bene
daser333 [38]

Answer:

a

Explanation:

Automatic fiscal policies are policies that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments

In an expansion, progressive tax increases the tax paid and this reduces disposable income

In a contraction, tax paid is reduced and this increases disposable income

Congress passes a law during a recession that automatically extends unemployment benefits for those whose benefits will soon expire. this is an example of discretionary fiscal policy

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

4 0
3 years ago
Angela, Inc., holds a 90 percent interest in Corby Company. During 2020, Corby sold inventory costing $114,300 to Angela for $12
Mandarinka [93]

Answer: $9628

Explanation:

First, we need to calculate the gross profit which will be:

= $127,000 - $114,300

= $12700

Then, gross profit rate will be:

= Gross profit / Sales × 100

= ($12700 / $127,000) × 100

= 10%

Unrealized profit on $43,600 will be:

= 10% × $43600

= 0.1 × $43600

= $4360

The unrealized profit for 2021 will be calculated as:

= $192,000 - $153,600

= $38400

Then, gross profit rate will be:

= Gross profit / Sales × 100

= ($38400 / $192,000) × 100

= 20%

Unrealized profit on $50,400 will be:

= 20% × $50,400

= 0.2 × $50,400

= $10080

The noncontrolling interest in the 2021 income of the subsidiary will then be:

Income of Corby company = $102000

Add: Deferal of unrealized gross profit = $4360

Less : Unrealized profit on current year = $10080

Adjusted income = $96280

Non controlling interest at 10% will then be:

= 10% × $96280

= 0.1 × $96280

= $9628

3 0
3 years ago
The following information is available for four companies. Company Current Assets Total Assets Current Liabilities Total Liabili
anygoal [31]

Answer:

Gamma

Explanation:

Current ratio is an example of a liquidity ratio. Liquidity ratios measure a firm's ability to honour its short terms obligations. the higher the current ratio, the higher the firm's liquidity and its ability to meet short term obligations

Current ratio = current asset /current liability

Alpha = $74,524 /  $60,100 = 1.24

Beta = $207,536 / $152,600  = 1.36

Gamma =  $60,125 / $32,500 = 1.85

Delta = $95,335 / $82,900 = 1.15

Gamma has the highest current ratio and the best short-term solvency position

8 0
3 years ago
In Chapter 1, you learned that buying and selling textbooks are two separate decisions made at the margin. Textbooks create valu
Delvig [45]

Answer:

$300

Explanation:

The total value gained V is given by sum of the value gained when buying the book (B) added to the value gained when selling the book (S).

The value gained at purchase is given by the difference between the willingness to pay and the actual amount paid:

B=\$450 -\$200\\B= \$250

The value gained when selling the book is given by the difference between the amount received from selling and the value of keeping the book:

S= 0.5*\$200 - \$50\\S=\$50

The total value gained is:

V= B+S\\V=\$250+\$50\\V=\$300

You have gained $300 in total value.

3 0
4 years ago
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