Answer:
real interest rate decreases, national saving increases, investment increases, consumtion is unchhanged, output is unchanged (fixed because it is determined by the factors of production).
Explanation:
<u>Answer: </u>Production concept
<u>Explanation:</u>
Production concept is based on concentrating on the efficiency of the production and manufacturing. The basis of production concept is to make the goods available to the consumer at affordable prices. By producing in mass quantities the companies believed they can reduce the cost of production.
Also that supply can be increased when the cost of production is lower. Economies of scale can be achieved by the company when they reduce cost of production they can increase their profit earning capacity.
Answer:
It is more profitable to sell the units as-is and produce new ones.
Explanation:
Giving the following information:
The company has 22,000 defective units that cost $6 per unit to manufacture.
Sell as-is:
Selling price= $2
Rework:
Additional cost= $4.5
Selling price= $8.5
If the units are sold as-is, the company will be able to build 22,000 replacement units for $6 each and sell them at the full price of $8.50 each.
<u>The original cost of the 22,000 units is a sunk cost, it will remain no matter the decision. </u>
Sell as-is:
Defective units= 22,000*3= 44,000
New units= 22,000*(8.5 - 6)= 55,000
Total income= $99,000
Rework:
Sales= 22,000*(8.5 - 4.5)= $88,000
It is more profitable to sell the units as-is and produce new ones.
Answer and Explanation:
The computation of the federal income tax ramifications are shown below:
At the corporate level, the capital gain is
= Worth of the land - the purchased value of the land four years ago
= $240,000 - $160,000
= $80,000
Since there is four shareholders, so the amount each shareholder held is
= $80,000 ÷ 4
= $20,000
And, the David stock basis drop is
= David basis in S corporation stock - land worth + amount of each shareholder
= $270,000 - $240,000 + $20,000
= $50,000
