Answer:
d. directly increase by $2 and the money-creating potential of the commercial banking system will increase by $6
Explanation:
Note: The organized table of the question is attached as picture below
Total increase in money supply = (1/Reserve ratio)*2
Total increase in money supply = (1 / 0.25) * 2
Total increase in money supply = 4 * 2
Total increase in money supply = 8.
Out of which 2 is directly increased because fed deposits 2 into checking deposits and 6 is indirectly increased.
Answer:
Gross margin = $166,500
so correct option is C. $166,500
Explanation:
given data
Planned and actual production = 40,000 units
Sales = 37,000 units @ $15 per unit
Production costs
Variable = $4 per unit
Fixed = $260,000
Selling and administrative costs
Variable = $1 per unit
Fixed = $32,000
to find out
gross margin that the company would disclose on an absorption costing income statement
solution
we get here sale that is
Sales = 37000 × $15
sales = $555,000
and
cost of good sold is
cost of good sold is = variable cost per unit + fixed cost per unit
cost of good sold is = 4 +
cost of good sold is = 10.5
so total cost of god sold = 37000 × $10.5
total cost of god sold = $388500
so Gross margin is here
Gross margin = $555,000 - $388500
Gross margin = $166,500