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3 years ago

How would recession effect the economic

Business

1 answer:

Virty [35]3 years ago

6 0

Answer:

Recession cause standard monetary and fiscal effects.

Explanation:

Recession impact all kinds of business, large and small,due to tightening credit conditions, slower, demand, and general fear and uncertainty.

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he units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 22 units @ $29 $638 June 16 Purc

Mama L [17]

Answer:

Thus, difference in gross profit = $144 + $144 = $288

Profit as per FIFO is higher than profit as per LIFO

Explanation:

In the given case, as per both the methods computation shall be as follows:

Date Quantity Rate Amount

Mar 1 22 units $29 $638

Jun 16 31 units $30 $930

Nov 28 41 units $37 $1,517

Total 94 units $3,085

Closing units = 18

That means sales = 94 - 18 = 76 units

Thus as per LIFO cost = 41 units @ $37 + 31 units @ $30 + 4 units @ $29

= $2,563

Closing stock = 18 units @ $29 = $522

As per FIFO cost = 22 units @ $29 + 31 units @ $30 + 23 units @ $37 = $2,419

Closing stock = 18 units @ $37 = $666

Thus, difference of closing stock = $666 - $522 = $144

Profit as per FIFO is higher by $144

Cost is higher in LIFO by $2,563 - $2,419 = $144

Thus, difference in gross profit = $144 + $144 = $288

6 0

4 years ago

Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, a

denpristay [2]

Answer:

Company Price of Bond

Miller Corporation $1,218.32

Modigliani Company $810.92

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>

Value of Bond = PV of interest + PV of RV

The value of bond Miller Corporation can be worked out as follows:

Step 1

PV of interest payments

Semi annul interest payment = 8%× 1000× 1/2 =40

Semi-annual yield = 6%/2 = 3% per six months

Total period to maturity (in months) = (2 × 18) = 36 periods

PV of interest =

40× (1- (1+0.03^(-36)/0.03)= 873.29

Step 2

PV of Redemption Value

= 1,000 × (1.03)^(-36) =345.03

Step 3:

Price of bond

= 873.29 + 345.03= $1,218.32

Modigliani Company

Step 1

PV of interest payments

Semi annul interest payment = 6%× 1000× 1/2 =30

Semi-annual yield = 8%/2 = 4% per six months

Total period to maturity (in months) = (2 × 18) = 36 periods

PV of interest =

30× (1- (1+0.04^(-36)/0.04)= 567.25

Step 2

PV of Redemption Value

= 1,000 × (1.03)^(-36) =243.66

Step 3:

Price of bond

= 567.2484586 + 243.66 = $810.92

Price of bond = $810.92

5 0

3 years ago

B2B markets differ from B2C markets because: Group of answer choices salespeople personally call on business customers to a far

yKpoI14uk [10]

Answer:

salespeople personally call on business customers to a far greater extent than they do consumers.

Explanation:

Business to business (B2B) markets differ from Business to consumers (B2C) markets because salespeople personally call on business customers to a far greater extent than they do consumers.

Under the B2B sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.

On the other hand, the B2C market involves businesses selling their goods and services directly to the end consumers or users for personal use.

6 0

4 years ago

Suppose a 65-year-old person wants to purchase an annuity from an insurance company that would pay $20,700 per year until the en

laila [671]

→Answer:

a. $188,533.82

b. $219,296.09

Explanation:

These problems can be solved using the present value of annuity formula which is:

PV= C x (1-(1+r)^-n)/r

Where:

PV = the present value of annuity (the amount we are solving for)

C= The annual amount receivable from the insurance company ($20,700)

r= The interest rate (7%)

n= Number of years (15 and 20 years respectively)

To solve the first question (a) plug the variables into the formula and you will have → 20,700 × (1-(1.07)^-15)/.07= $188,533.82
to solve the second question (b) plug the variables into the formula and you will have → 20,700×(1-(1.07)^-20)/.07 = $219,296.09

5 0

3 years ago

Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports

Leni [432]

Answer:

$8,125,000

Explanation:

Break-even point is the level of sales on which business has no profit no loss situation. The business only covers the variable and fixed cost at this point.

Total Contribution ratio = (65% x 30%) + (35% x 50%) = 19.5% + 17.5% = 37%

Fixed cost = $4,625,000

Break-even point = Fixed cost / Contribution margin ratio = $4,625,000 / 37% = $12,500,000

Break-even Sales for Sports Division = $12,500,000 x 65% = $8,125,000

5 0

3 years ago

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