Answer:
There are no answers to pick from!
Explanation:
Answer:
B. 11%
Explanation:
Recall that
Dollar return on euros = Euro interest rate + [(current exchange rate per euro - initial exchange rate per euro) ÷ initial exchange rate per euro]
Given that
Euro interest rate = 0.05 or 5%
Initial exchange rate = 1.10
Current exchange rate = 1.165
Therefore
Dollar return on Euros = 0.05 + [(1.165 - 1.10) ÷ 1.10]
= 0.05 + [0.065 ÷ 1.10]
= 0.05 + 0.059
= 0.109
OR
= 10.9 %
= 11%
Answer:
[b] = $ 2500
[c] = $ 7500
[d] = Gross margin = 22500 – 15000 = $ 7500
Net Income = 7500 – 4000 = $ 3500
[e] = $ 3500
Explanation:
Here the solution is given as follows,
Answer: Accounting profit= $44,500
Economic Profit = $4,150
Explanation: <em>Accounting profit</em> are the profit earned by subtracting explicit cost from the total revenue earned.
<em>Economic profit</em> are profits lefts out after subtracting implicit (opportunity) cost and explicit ( monetary) costs. It is given by
In this case, the explicit cost include rental cost, office supplies, office staff and telephone expenses.
While, implicit cost include the 7% interest foregone on the $5000 savings and the salary foregone ($40,000) by choosing to startup a business than take up the job.
Answer:
D. None of the above
Explanation:
Gross Domestic Product (GDP) is the total monetary value of all the goods and services a country produces within a period of time.
There are various approaches to calculating GDP which include; the income approach, expenditure approach and output approach.
The income approach to calculating GDP considers income from all the factors of production (profits, interest, rental and labor incomes) in each sector of the economy to arrive at the National income of the country.
