The gross domestic product (GDP) measures the monetary
status of the market value of all final goods and services. With this
definition therefore, the GDP of all these transactions only account the
selling the final product, hamburger.
Add to GDP = 10,000 * $5
Add to GDP = $50,000
Answer:
B. Increasing dividend payments to share-holders and/or re-purchasing shares of the company's stock.
Explanation:
Diversification reduces investment risks by allocating investments in a variety of assets categories. A business that diversifies will operate in different industries as opposed to exposing itself to a single sector. Improving the diversification aspects involve investing in new industries, thereby minimizing overall risks should a particular sector not perform as expected.
Re-structuring company business line-up would improve prospects, especially if the old team was under-performing. Injecting a new management team, introduces fresh ideas that can lead to better performances.
Increasing dividends would make shareholders happy but denies the business expansion capital. Re-purchasing shares in counter-diversification as the business would be re-investing in itself.
Answer:
Bill and Ted's contribution margin for the first month is $790
Explanation:
Contribution margin per unit is the amount that each additional unit sold contributes towards a company’s fixed costs and profit and calculated by following formula:
Contribution Margin per Unit = Sales Price – Variable Cost per Unit
The company had 10 service calls each earning $99 revenue per call and variable costs amounting to $20 per call
Contribution Margin per Unit = $99 - $20 = $79
Bill and Ted's contribution margin for the first month = $79 x 10 = $790
Answer:
P = $917.77
Explanation:
The computation of the P is shown below:
Let us assume i% be the annual interest rate
Now
Present value of 1st Payment Pattern is
= $200 ÷ (1+i)^5 + $500/(1+i)^10
Present value of 2nd Payment Pattern is
= $400.94 ÷ (1+i)^5
Now equate these two above equations
PV of 1st Payment Pattern = PV of 2nd Payment Pattern
$200 ÷ (1+i)^5 + $500 ÷ (1+i)^10 = $400.94 ÷ (1+i)^5
$500 ÷ (1+i)^10 = $200.94 ÷ (1+i)^5
2.4883 = (1+i)^5
1+i = 1.20
i = 0.20
= 20.00%
Now
P = $100 × 1.20^10 + $120 × 1.20^5
P = $917.77