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dedylja [7]
3 years ago
6

Instead of investing a lump of sum of $25000,Brittany Royer decides to svae the money in a vault for 2years. Assuming the inflat

ion being 2.5%per year,how much will her purchasing power decline in 2years
Business
1 answer:
Ipatiy [6.2K]3 years ago
7 0

Answer:

$1265.63

Explanation:

Inflation is a persistent rise in the general price levels

Types of inflation

1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect  

Loss in purchasing value = future value of the amount saved - amount saved

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

$25000 (1.025)² = $26.265.625

Amount lost = $26.265.625 - $25,000 = $1265.63

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Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $176,000 and that 13, 70
saveliy_v [14]

Answer:

A. $194, 035

Explanation:

Predetermined Manufacturing overhead Rate = Estimated total overheads / Estimated direct labor hours

Predetermined Manufacturing overhead Rate = $176,000 / 13,700

Predetermined Manufacturing overhead Rate = $12.85 /  direct labor hour

Actual Labor hours = 15,100 hours

Manufacturing overhead allocated = $12.85x 15,100

Manufacturing overhead allocated = $194,035

The correct option is A. $194, 035

7 0
3 years ago
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sweet-ann [11.9K]

Answer: False

Explanation:

Starbucks efforts to expand have yielded fruit as it is now more accessible to its ever increasing customer base which is as a result of the brand's recognition and reputation.

They are now more successful as a result and this is proven by the fact that Starbucks revenue has been rising since 2013 from around $14 billion to $26.5 billion in 2019.

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3 years ago
College president Wally contracts with Alice to teach a business law class. Alice does a fine job teaching, but she has an argum
solong [7]

Answer:

Specific performance

Explanation:

Based on the information provided within the question it can be said that in this scenario the order that Wally should seek is known as Specific performance. This is a court order which forces the breaching party to perform the agreed upon act, and by doing so complete the agreed upon specifications set forth by the contract. Failure to do so will find the individual in contempt of court.

6 0
3 years ago
The amount of a company’s sales revenue that remains after subtracting the “cost of goods sold,” a standard accounting measure o
Alborosie

Answer:

you can use both. but not sure.

3 0
3 years ago
Which one of the following should NOT be included in the project analysis of the manufacturing of a new product? A) Change in ne
trasher [3.6K]

Answer:

Option(c) is the correct answer to the given question

Explanation:

The project analysis means finding the cost of project ,project is working properly as the customer need and other factor are used to check the manufacturing of new product.

Following are features of project analysis in the new product

  • Improve in net working capital of associated with the release of a new program.
  • The capital expenditures of a new project which work in the favour of a company's business working capital.
  • The variations in the working capital of a company with or without a specific project.

All the other option are related to project analysis of the manufacturing of a new product that's why they are incorrect according to the question .

3 0
3 years ago
Read 2 more answers
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