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Amanda [17]
3 years ago
13

What happens over time to the real cost of purchasing a home, if the mortgage payments are fixed in nominal terms and inflation

is in existence? (A) The real cost is constant. (B) The real cost is increasing. (C) The real cost is decreasing. (D) The price index must be known to answer this question.
Business
1 answer:
Sauron [17]3 years ago
4 0

Answer:

(C) The real cost is decreasing.

Explanation:

1 + real rate = (1 + nominal rate)/(1+ inflation)

So, with existence of inflation, real rate cost will be decreasing after each period.  After each period, it will be found out by dividing with inflation rate in the way shown above and added multiplicatively.

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A company rents a building with a total of 50,000 square feet, which are evenly divided between two floors. The company allocate
shtirl [24]

Answer:

$8,000

Explanation:

The computation of the monthly rental expense allocated is shown below:

Rent allocated to 1st floor:

= $30,000 × 2 ÷ 3

= $20,000

There is 50,000 square feet i.e. equally divided between first floor and second floor. so 25,000 square feet for each floor.

Now  

Rent allocated to 10,000 square feet:

= ($20,000 ÷ 25,000) × 10,000

= $8,000

8 0
3 years ago
Assuming all other things are the same, if there was a decrease in the break-even point, selling price per unit must have?
nydimaria [60]

If there is a decrease in the break-even point, the selling price per unit must increase. 

<h3>What is Break-Even Point? </h3>

When the total cost and total revenue are equal, it is the break-even point. It means that there is no loss or gain for the small business. The company is at the point where the cost of the product is equal to the revenue for the product. The Break-even price analysis helps in smarter prices, setting revenue targets, taking smarter decisions, limiting financial strain, catching the missing expenses, and most important funding your business. It can be calculated in two ways; by determining the number of units that are to be sold or by the number of sales. 

To learn more about Break-Even Point, visit:

 brainly.com/question/15356272

#SPJ4

4 0
2 years ago
On december 31, 2016, some of corrigan corporation's key executives were granted the option to buy 100,000 shares of the firm's
Virty [35]
<span>I believe that if the executives exercised their option to use their fair value method, it would lower the firm's net income for 2017, thereby lowering the overall value of the stock. As a private firm, they do not have to use the fair value method. The compensation expense will also be lower. It would also devalue the projection for the following year.</span>
7 0
3 years ago
This is the forces that combine to make the production of products and services possible.
Hatshy [7]

"Factor of Production" is the force that combine to make the production of products and services possible.

Explanation:

Factor of production involves land, labor, capital, and entrepreneurship.

Land:

The important factor is that it creates major revenue through oil, gases and other possible resources which can be obtained from the land.

Labor: Starting from the person who brought bricks to build the company till the top management of the company are part of the Labor factor.

Capital: A factor which implicitly support as a factor of production. Without capital there is no chances of production or providing wages.

Entrepreneurship: These are the brainstorms who plan and create product and sits at the top level and make production and service possible.

8 0
3 years ago
Chris Co. is considering replacing an old machine. The old machine was purchased for $100,000 and has a book value of $40,000 an
Natali5045456 [20]

Answer:

The answer is letter A.

Explanation:

No, because the relevant cost of the new machine is $10,000 more than the cost of the old machine.

3 0
4 years ago
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