21. Outline two reasons for the fluctuation in the value of currencies.

Over the last century in the United States there has been an increase in _______ as a percentage of total output. Farming, inter

BabaBlast [244]

Answer: Services, government and international trade.

Explanation:

The role of services, and international trade to the gross domestic product (GDP) of the United States economy is very important. Services with their increasing importance in the world economies are becoming vital in the economic growth of many countries.

In the United States, the relationship between growth in the services sector and economic growth has become stronger since two decades ago as it's contribution to the GDP has increased.

International trade which is the exchange of goods, capital, and services across international borders also represents a significant proportion of the gross domestic product of the United States.

4 0

2 years ago

Multiple-Step Income Statement On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Com

IRISSAK [1]

Answer:

$1,438,950

Explanation:

Racine Furnishings Company

Multiple-Step Income Statement for the year ended March 31, 2019

Sales revenue $6,581,950

Less cost of goods sold ($3,860,900)

Gross profit $2,721,050

Expenses

Selling Expenses (724,300 )

Administrative Expenses (547,300)

Income from operation 1,449,450

Other expenses

Interest Expense ( 10,500)

Net income $1,438,950

7 0

2 years ago

Puppy Co. reports the contribution margin income statement for 2020.

Oksi-84 [34.3K]

Answer: See explanation

Explanation:

a. Compute the company's degree of operating leverage for 2019.

This will be:

= Contribution / Pre tax income

= 432000 / 108000

= 4

b. If sales decrease by 5% in 2020, what will be the company's pretax income?

We should note that the degree of operating leverage is:

= % change in pre tax income / % change in sales

4 = % change in ore tax Income / 5%

% change in ore tax income = 5% × 4 = 20%

Company's pre-tax income will be:

= 108000 - (20% × 108000)

= 108000 - (0.2 × 108000)

= 108000 - 21600

= $86400

c. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020.

Sales = 2160000 × 95% = 2160000 × 0.95 = 2052000

Less: Variable cost = 1728000 × 95% = 1728000 × 0.95 = 1641600

Contribution margin = 410,000

Less: Fixed cost = 324000

Pre tax net income= 86400

4 0

2 years ago

Suppose the own-price elasticity of demand for good X is −3, its income elasticity is 1, its advertising elasticity is 2, and th

Taya2010 [7]

Answer:

Consumption of good will increase by 15%

Explanation:

Price Elasticity of Demand : is demand responsiveness to price change.

Ped = Percentage change in demand/ percentage change in price

Ped = %ΔQ / %ΔP

%ΔP = -5 ; Pe = -3 [Given]

As per formula :

-3 = %ΔQ / -5

%ΔQ = (-3)X (-5) = +15%

Percentage change (increase) in Quantity = 15%

7 0

2 years ago

The overall variability of a firm's returns depends on the expected return of each individual project, percentage of funds inves

attashe74 [19]

Answer:

True

Explanation:

The reason is that the investor desires higher returns on the higher risk he takes. It is also evident from the Capital asset pricing model which says that the return demanded by the investor is equal to the return on the risk free investment and the risk premium. The investment in a portfolio of investments also affects the weighted average required return. Furthermore, the correlation coefficient of returns between investments must be inversely related so that the investor has a average return on the investment.

7 0

2 years ago