Answer:
Basket purchases.
Explanation:
Basket purchases is a term used for buying multiple fixed assets. It is bought as the price for basket purchases is lower than the price for individual asset. The transactions in the basket purchases are accounted for by using the relative sales value method to calculate unit purchase cost. It is calculated by dividing each sales value of product by the total sales value of all the product.
Answer:
$126,000
Explanation:
Given:
Total outstanding stocks = 600,000
Price per share of common stock = $2
Number of preferred stock = 120,000
Interest rate = 8%
Stock Value = $5
Outstanding year = 3
Total Amount of preferred stock = Principle × Rate × Time
or
Total Amount of preferred stock = ( 120,000 × $5 ) × 0.08 × 3 = $144,000
Since,
The preferred stock value is more than the amount distributed
Hence,
the total amount distributed i.e $126,000 will be received by the preferred stockholders
Answer:
Option (c) is correct.
Explanation:
Variable cost as a percent of sales:
= (Variable expenses ÷ Sales) × 100
= ($3,000,000 ÷ $5,000,000) × 100
= 60%
If Sales = X
then Variable cost is 0.6X (i.e. 60% of Sales)
Sales - Variable cost - fixed expenses = net operating income
X - 0.6X - 1,500,000 = 300,000
0.4X = 300000 + 1500000 = 1800000
X = 1800000 ÷ 0.4
= 4,500,000
Answer:
$0.6
Explanation:
Nominal interest rate (i) = 9% = 0.09
Output (Y) = 1,000
Money supply(M) = 1,200
==> (M/P)^d = (0.6Y) / i^(1/2)
==> 1200/P = 0.6*1000 / 0.09^(1/2)
==> 1200/P = 600 / 0.3
==> 1200/P = 2000
==> 1200 = 2000 * P
==> P = 1200/2000
==> P = $0.6
Therefore, the price level is $0.6