Answer:
a. 480
Explanation:
The computation of the economic order quantity is given below:
= 480 units
The carrying cost could be determined below:
= $4 × 25%
= $1
hence, the carrying cost is $1
Therefore the economic order quantity is 480
Thus, the correct option is a.
Answer: $53,600
Explanation:
Credit sales increase the balance on Accounts Receivables because they represent that people owe the business.
It is therefore included in the formula for calculating the ending balance of Accounts Receivables:
Ending accounts receivables = Beginning accounts receivable + Credit sales in May - Customer payments during May
19,000 = 24,600 + Credit Sales in May - 59,200
Credit Sales in May = 19,000 + 59,200 - 24,600
= $53,600
Answer:
Explanation:
From the question, we are informed that before the tax, 25 million wine bottles were sold at price of $6 per bottle and that after the tax, 20 million bottles of wine are sold every month and the consumers pay $8 per bottle which include the tax and producers receive $5 per bottle.
The amount of tax on wine will be the difference between the price consumers pay after the tax and the price producers receive. This will be:
= $8 - $5
= $3 per bottle
The tax burden that falls on the consumers will be difference between price paid after tax and the price which is paid before the tax.
= $8 - $6
= $2 per bottle
The tax burden on the producers will be difference between price received before the tax and price received after the tax.
= $6 - $5
= $1 per bottle
Answer: $156
Explanation:
The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.
Based on the information given, the GDP will be calculated as:
GDP = C + I + G + X - M
where C = consumption = $120
I = Investment = $25
G = government purchases = $15
X = exports = $8
M = imports = $12
GDP = C + I + G + X - IM
GDP = $120 + $25 + $15 + $8 - $12
GDP = $156
