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2 years ago

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.

Business

1 answer:

Tanya [424]2 years ago

3 0

Answer:

1. M1 and M2

2. M2

3. M2

Explanation:

M1 and M2 are the monetary aggregates.

M1 includes = Currency with the public + Demand deposits + Other deposits with the RBI

M1 is most liquefied among all of the monetary aggregates because it includes cash and other highly liquefied assets.

M2 includes = M1 + Post office savings deposits + non-institutional money market fund + small time deposits

1. The withdrawal from the bank reduces the M1 and we know that M1 is a component of M2, so M2 also falls. Therefore, this transaction belongs to both M1 and M2.

2. Certificate of deposits of $8,000 for a two year is a component of M2 monetary aggregates because small time deposits are a part of M2.

3. The amount of money as the non-institutional money market funds is a part of M2.

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Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received

aleksley [76]

Answer:

A. $11,970

B. $11,890

C. January

Explanation:

a. Calculation for the after-tax cost if Isabel pays the $19,000 bill in December

After-tax cost=$19,000 - ($19,000 x 37%)

After-tax cost= $19,000 - $7,030

After-tax cost= $11,970

Therefore the after-tax cost if Isabel pays the $19,000 bill in December will be $11,970

b. Calculation for the after-tax cost if Isabel pays the $19,000 bill in January

First step is to calculate the cost before taxes

Cost before taxes = $19,000 - ($19,000 x 8%/12) Cost before taxes= $19,000 - $127

Cost before taxes= $18,873

Now let calculate the After-tax cost

After-tax cost = $18,873 - ($18,873 x 37%)

After-tax cost= $18,873 - $6,983

After-tax cost = $11,890

Therefore the after-tax cost if Isabel pays the $19,000 bill in January will be $11,890

c. Based on the above calculation for both a and b, Isabel should pay the amount of $19,000 bill in January reason that it has the lowest cost of debt of the amount of $11,890 compare to December which has the cost of debt of the amount of $11,970.

5 0

2 years ago

Company A manufactures and sells extreme sports gear. Its website includes a place for customers to post reviews of its products

erik [133]

Answer:

personal selling

Explanation:

Personal selling is a type of marketing strategy used when companies encourage their customers to make their experiences public and share their feelings about the product. In this case, the company is encouraging consumer feedback and sharing stories.

5 0

2 years ago

A chemical company spent $ 530 comma 000 to produce 150 comma 000 gallons of a chemical that can be sold for $ 5.00 per gallon.

solmaris [256]

Answer:

If the company decides to process it further, it will increase operating income $68,000

Explanation:

Selling the chemical on processing,

the Sales will be = Gallons of chemical produce × Selling price per gallon

= 150,000 × $5

= $750,000

Cost of Processing the chemical = $530,000

Operating Income on selling the chemical:

= Sales - Cost of Processing the chemical

= $750,000 - $530,000

= $220,000

Total cost incurred to process the chemical into a weed killer:

= Cost of Processing the chemical +

= $532000 + $260,000

= $792,000

Sales of 150,000 gallons of weed killer:

= Selling price per gallon × Chemical produce

= $7.20 × 150,000 gallons

= $1,080,000

Operating income on processing to weed killer:

= Sales of 150,000 gallons of weed killer - Total cost incurred to process the chemical into a weed killer

= $1,080,000 - $792,000

= $288,000

So, If the company decides to process it further, it will increase operating income by:

= Operating income on processing to weed killer - Operating Income on selling the chemical

= $288,000 - $220,000

= $68,000

5 0

3 years ago

Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases becaus

hjlf

Answer:

B) GDP would definitely increase because GDP excludes leisure.

Explanation:

The gross domestic product GDP includes the market value of all the final and legal goods and services produced within a country during one year.

Leisure time by itself is not included in the GDP, recreational and travel activities are, e.g. hotel services, restaurants, camping equipment, etc.

8 0

2 years ago

1) Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand o

lys-0071 [83]

Answer:

C) .07

Explanation:

Current cost of newspaper = C

= $0.40 / units

Current price of newspaper = P

= $0.80 / UNIT

Current salvage value = S = 0

Cost of under ordering = Cu

= P – C

= $40

Cost of over ordering = C – S

= $0.40

Critical ratio = Cu/ ( Cu + Co )

= 0.4 / ( 0.4 + 0.4)

= 0.5

Since critical ratio defines the probability of optimum demand ,

We can consider service level ( %) = Critical ratio x 100

Current service level = 50 %

When the salvage value = $0.1 ,

Cost of under ordering = Cu

= P – C

= $40

Cost of over ordering = C – S

= $0.40 - $0.1

= $0.30

Critical ratio = Cu/ ( Cu + Co )

= 0.4 / ( 0.4 + 0.3)

= 0.4/0. 7

= 0.5714

The revised service level = 0.5714 x 100 = 57.14 %

Therefore, The increase in service level is 0.07.

4 0

3 years ago