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Valentin [98]
3 years ago
7

If savers anticipate an inflation rate of 10 percent and require a real return of 5 percent, then savers will require an interes

t rates of _______ percent to be paid on their deposits.
Business
1 answer:
malfutka [58]3 years ago
7 0
In here, we can say that we are looking for the nominal interest rate. Given is the real interest rate which is 5% and the inflation rate of 10%. The nominal rate of interest is real interest rate plus the inflation rate. Savers will now require an interest rate of 15%
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a company has sales of $119,000; cost of goods sold of $74,870; and total direct expenses of $8,620. the department’ contributio
arsen [322]

The department’ contribution to overhead is $35510.

<h3>How to calculate the department contribution to overhead?</h3>

Given, sales= $119,000;

cost of goods sold= $74,870;

total direct expenses= $8,620.

Gross profit = Sales - (COGS + Direct expenses)

Gross profit = $119,000 - ($74870 + $8620)

Gross profit = $35,510.

<h3>What are direct expenses?</h3>

Direct costs, commonly referred to as costs of goods sold (COGS), are expenses that are entirely attributable to the creation of a particular commodity or service. These expenses cover the direct costs of the materials required to make the product as well as maybe any labor charges that are utilized only to make the product.

To know more about gross profit, visit:

brainly.com/question/18567528

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6 0
1 year ago
Which family deployability checklist will prompt you to make sure that you make arrangements for preparation of your family's ta
Musya8 [376]
The answer is family "finance" <span>deployability checklist.
</span>

<span>This Checklist of family refers to the list that will make sure that arrangements are made for a family's tax return. It is created under Financial on the checklist. Medical, legal/administrative, and transportation/automobiles are considered as family deployability checklists.</span>

6 0
3 years ago
2. The La Salle Bus Company has decided to purchase a new bus for $95,000 with a trade-in of their old bus. The old bus has a BV
Lera25 [3.4K]

Answer:

a.

9 recovery period years class

b.

$8,889 per year

Explanation:

a.

Buses are 9 years recovery period class , in which it is depreciated using historical method and it has 5 years GDS class life.

b.

Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.

We will depreciate this asset for only 9 years because it has 9 years class, even it will be kept for 10 years but the depreciation charged for 9 years.

Depreciation rate = ( Cost - Salvage Value ) / useful life = ($95,000 - $15,000) / 9 = $8,889

Depreciation charged in 2018 = $19,500

5 0
3 years ago
Read 2 more answers
Regency Inn leased a rental office in the lobby of its hotel to Americar, a car rental agency. Wagner rented a car from Americar
WINSTONCH [101]

Answer:

The court ruled against both Americar and Regency Inn, and then Regency Inn won its case against Americar. The nuisance case itself is pretty unpleasant, so it's not worth referring to it.

The fundamentals for the ruling against Americar were that they themselves had drafted the lease agreement and that the clause included in the lease agreement by which they agreed to indemnify Regency Inn was valid. The original lease term had already expired, but Americar continued to lease the offices on a monthly basis. Since they never left the place, the clauses in the original agreement were still valid even though the lease changed to a monthly basis. I.e. if you sign a lease contract and after the original contract is over, you continue to lease the same place, then the clauses from the original contract still apply.

The clause stated that Americar was liable for damages that took place on the leased premises or in their proximity, i.e. the area near their offices. The parking lot was considered to be in the proximity of Americar's offices.

3 0
3 years ago
Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution
lawyer [7]

Answer:

                                                     North     West           South

Contribution margin           $300,300 $499,000 $399,200

Controllable margin            $139,700 $360,600 $209,900

Average operating assets    $997,857 $1,567,826 $1,499,286

Minimum rate of return             13%            14%           9%

return on investment (ROI) = controllable margin / average operating assets

North's ROI = $139,700 / $997,857 = 14%

West's ROI = $360,600 / $1,567,826 = 23%

South's ROI = $209,900 / $1,499,286  = 14%

residual income = controllable margin - (average operating assets x minimum rate of return)

North's RI = $139,700 - ($997,857 x 13%) = $9,978.59

West's RI = $360,600 - ($1,567,826 x 14%) = $141,104.36

South's RI = $209,900 - ($1,499,286  x 9%) = $74,964.26

(1) If ROI is used to measure performance, which division or divisions will probably make the additional investment?

North and South divisions should probably make the additional investments since their current ROI is less than 16%

(2) If residual income is used to measure performance, which division or divisions will probably make the additional investment?

All the divisions since their minimum required rate of return is less than 16%.

6 0
3 years ago
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