Net profit margin: Net profit is internally generated profit from business operations which would be recorded in the balance sheet as retained earnings. This show the earning ratio of the company over sales value.
Net profit margin as a percentage of sales: Net profit margin as a percentage of sales is calculated by dividing net income by net sales. Net profit margin shows the percentage of net income included in net sales.
Step: 1
Determine the net profit margin amount to be considered:
The net profit margin amount to be considered for the product Dr, Da, Di, and De is $15,257; $9,136; $12,485; and $13,136; respectively.
Explanation:
The net profit margin amount to be considered for the product Dr, Da, Di, and De is $15,257; $9,136; $12,485; and $13,136; respectively. This amount has been found by deducting the total variable cost and total period cost from the sales value of each product.
Step: 2
Determine the net profit margin as a percentage of sales as follows: -
C D E - B Net profit margin calculation Particulars Dr Da 4 Sales Value (a) $ 57,231 $ 5 Net profit margin (b) $ 15,257 $ 6 N
Therefore, the net profit margin as a percentage of sales value is 26.7%, 23.0%, 27.7%, and 26.7% for the product Dr, Da, Di, and De, respectively.
Explanation:
The net profit margin as a percentage of sales value has been computed by dividing the net profit margin by the respective sales value for the product Dr, Da, Di, and De.
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In terms of financial intermediation, the couple who went to a bank and took out a $200,000 loan to buy a new house is an example of a?
In terms of financial intermediation, the couple who want to a bank and took out a $200,000 loan to buy a new house is an example of a demander of funds.
A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction, such as a commercial bank, investment bank, mutual fund, or pension fund. Financial intermediaries offer a number of benefits to the average consumer, including safety, liquidity, and economies of scale involved in banking and asset management.
Although in certain areas, such as investing, advances in technology threaten to eliminate the financial intermediary, disintermediation is much less of a threat in other areas of finance, including banking and insurance.
A non-bank financial intermediary does not accept deposits from the general public. The intermediary may provide factoring, leasing, insurance plans, or other financial services. Many intermediaries take part in securities exchanges and utilize long term plans for managing and growing their funds. The overall economic stability of a country may be shown through the activities of financial intermediaries and the growth of the financial services industry.
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Infrastructure is the foundation necessary to build a city, tourism program, or a sustainable tourism business and includes which elements?
Infrastructure is the foundation necessary to build a city, tourism program, or sustainable tourism business and includes roads, Water, Sewage, Communication, and stores.
Infrastructure is the set of facilities and systems that serve a country, city, or another area, and encompasses the services and facilities necessary for its economy. The infrastructure of a country, society, or organization consists of basic facilities such as transportation, communications, power supplies, and building.
Basically speaking, infrastructure means "the fundamental facilities and systems that serve an area," although if you're referring strictly to construction, then it would be the beams, foundation, etc.
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According to Arlie Hochshild the unpaid labor inside the home that is often expected of women after they get home from working at paid labor outside the home is refered to as the __________ __________
Arlie Hochshild states that a Second shift means the unpaid labor inside the home that is often expected of women after they get home from working at paid labor outside the home.
What is a Second shift?The term "Second shift" is coined by sociologist Arlie Hochschild and It refers to the household and childcare duties that follow the day's work for pay outside the home.
It further emphasizes that while both men and women experience the second shift, women tend to shoulder most of this responsibility.
Therefore, in accordance to Arlie Hochshild view, he sees any unpaid labor inside the home that is often expected of women after they get home from working at paid labor outside the home to mean a Second shift.
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1. In what ways do you think the debt of your country influences the life of ordinary citizens? 2. Discuss with reference to a named government the strategies used to manage the country?s debt 3. Briefly evaluate whether the policies were successful.
A debt crisis in one country can, and frequently does, cause economic suffering in other countries, whether in the private sector or the government. A tightening of financial circumstances, such as an increase in interest rates, a slowdown in trade and economic growth, or even just a sharp drop in confidence, might cause this.
What is economic crisis ?It is a point in the economic cycle when an economy experiences long-term challenges. A sharp downturn in the nation's economic performance is evident in falling output and demand, rising unemployment, and corporate bankruptcies. This will inevitably result in a significant level of poverty throughout the nation.What is economic growth?A society's ability to generate and consume more and better economic goods and services is known as economic growth. Even if the definition of economic growth is simple, measuring it is really challenging. It's crucial to remember that growth is not defined by increases in household income or inflation-adjusted GDP; similarly, life expectancy is a metric of population health but is by no means the definition of population health.Learn more about economic crisis here:
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The ______ is an example of a black swan event.
a. 2008 global financial crisis
b. duty to file taxes
c. start of the academic year
d. annual flu season
The 2008 global financial crisis is an example of a black swan event .
What are black swan events ?
A black swan event is an extremely negative event or happening that is unexpected , which results in a decisively negative impact on the markets and is often hard to fully conceptualize in term of scope.
In relation to the financial markets, a black swan event is supremely negative ,leaving widespread destruction and notoriously uncertain outcomes.
In order to be characterized as a black swan event , the event must have drastically negative , widespread effect , be marked with a level of uncertainty ; and leads to the exhibition of " hindsight bias," being proven 'predictable'based solely on information learned in hindsight.
Global Financial Crisis of 2008
The trouble started after years of steady growth following the dot-com bubble at the turn of century. Employment rates were high , and inflation rates were low, lending institutions - and the country as a whole -fell into a pattern of financial complacency. Interest rates fell more than 4% from 2001 to 2008 and there was plenty of easy money available to both individuals and businesses.
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A corporate bond which receives a bbb rating from standard & poor's is considered ________
A junk bond is an obligation that has been assigned a lower rating...
Bonds rated BBB- (Standard & Poor's and Fitch scale) or Baa3 (Moody's scale) or higher are considered investment grade. Lower rated bonds are considered "speculative" and are often referred to as "high yield" or "junk" bonds. Investment grade. Moody's.
With approximately $3.2 trillion in bonds and notes, the BBB category accounts for the majority (53%) of US investment grade bonds. BBB-rated bonds are more than 2.5 times the size of the speculative bond market.
Standard & Poor's (S&P) is a company that is a leading index provider and data source for independent credit ratings. The name derives from the 1941 merger of two financial data publications, Henry Burnham Poor's publication on railroad prices (from 1860) and the Bureau of Standard Statistics, founded in 1906.
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A corporate bond which receives a BBB rating from Standard & Poor's is considered to be an investment-grade bond.
Investment-grade bonds are bonds that have a relatively low risk of default, meaning that there is a lower likelihood of the issuer being unable to make interest payments or repay the principal amount. These bonds are generally considered to be safer investments compared to bonds with lower ratings.
The BBB rating from Standard & Poor's signifies that the bond is of medium credit quality. It indicates that the issuer has a moderate ability to meet its financial obligations, but there may still be some level of risk involved. Bonds with ratings below BBB are considered to be non-investment grade or "junk" bonds, which typically have a higher risk of default.
It's important to note that ratings from credit rating agencies like Standard & Poor's are just one tool investors can use to assess the creditworthiness of a bond. Investors should also consider other factors, such as the financial health of the issuer, market conditions, and their own risk tolerance, before making any investment decisions.
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Ownership restraints on fdi are often put into place by a host country based on concerns of?
Ownership restraints on FDI are often put into place by a host country based on concerns of national security.
Why do governments restrict FDI?
Most of the time, governments aim to restrict or regulate foreign direct investment in order to safeguard domestic businesses and vital resources (such as oil, minerals, and other raw materials), preserve national and regional cultures, safeguard sections of their own populations, maintain political and economic independence, and manage or restrain economic growth.
What are the three potential costs of FDI to host countries?
There are three FDI expenses that affect host nations. They develop as a result of potential negative impacts on domestic competition, negative consequences on the balance of payments, and the perceived loss of national sovereignty and autonomy.
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Amanda has a job that pays $35 per hour for the first 40 hours worked each week, plus 1.5 times this hourly rate for work done over 40 hours. suppose amanda works 50 hours this week. how much will she earn before taxes?
she will earn $1,925 before taxes.
Given,
Total hours worked = 50 hours
Regular rate =$35
Regular time = 40 hours
Overtime rate = 1.5 × $35 = $52.5
Overtime hours = Time worked - regular time
= 50 hours - 40 hours
= 10 hours
Total amount earned = (Regular rate)×(Regular time) + (Overtime rate) × (Overtime hours)
= 35 × 40 + 52.5 × 10
= 1400 + 525
= 1,925
Hence, Total amount earned = $1,925
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A manager is concerned that there isn’t enough time spent on production and too much time spent on setups. The manager decides to double all production batch sizes. This change has no impact on demand. What impact will this likely have on the average inventory in the process?.
It will result in an increase in average inventory as larger batches require more time to be completed.
What is Operations Management?
Operations management (OM) is the management of business practices within an institution to achieve the highest level of efficiency possible. It is involved with converting materials and labor as efficiently as feasible into goods and services in order to maximize an institution's profit.
What are the 3 types of operations management?Product design and product.Planning and managing of manufacturing facilities.Purchasing/procurement.Forecasting.Capability planning.Inventory control.Quality control.Delivery to clients.To learn more about Operations management, refer
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Explain why it is important to the united states economy for the federal reserve system to control the money supply.
The Federal Reserve is the most powerful economic institution in the United States responsible for managing monetary policy and regulating the financial system.
It does this by setting interest rates, influencing the supply of money in the economy, and, in recent years, making trillions of dollars in asset purchases to boost financial markets.
The Fed is almost entirely independent from the executive branch and Congress which at times has led to tensions with the White House.
How does the Federal Reserve control the money supply?
The Fed can influence the money supply by modifying reserve requirements, which generally refers to the amount of funds banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able to loan more money, which increases the overall supply of money in the economy.
Why is control of money supply important?
Growth of money supply is an important factor not only for acceleration of the process of economic development but also for the achievement of price stability in the economy. There must be controlled expansion of money supply if the objective of development with stability is to be achieved.
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A $63,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $75,000, with a 5-year class life. The new machine will not increase sales, but will decrease operating costs by $16,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the initial outlay for the project?.
The initial outlay for the project after depreciation is loss of $26,700.
What is depreciation?Depreciation in accounting refers to two parts of the same concept: first, the real decline in fair value of an asset, such as the worth of factory equipment each year.
Depreciation is used to match the cost of a productive asset with a useful life of more than a year to the revenues received by employing the asset. The expense of an asset is frequently spread out throughout the years that it is used.
Section 32 of the Income Tax Act of 1961 contains the provision for authorising depreciation. Depreciation is a deduction allowed by the Income Tax Act for the reduction in the real worth of a physical or intangible asset used by a taxpayer.
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How will a firm know if it has grown too large, that is, when it has exceeded its minimum efficient scale of production?
Its long-run average costs begin to increase.
Average Cost is the manufacturing cost determined by dividing Total Cost (TC) by Total Output (TO) (Q). When we refer to the production cost per unit, we indicate that both fixed and variable costs are taken into account when determining the average cost. It is also known as Per Unit Total Cost as a result.
The term "average cost" refers to the production cost per unit, which is determined by dividing the overall production cost by the overall number of units produced. In other words, it calculates how much money is required for each unit of production produced by the company.
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Individuals without health insurance have to pay more for comparable services because they do not have the advantage of sharing costs as part of a pool of consumers
a. True
b. False
The critical functions of special economic zones (sezs) in china’s economic development strategy are to?
The most basic and universal indicator of human development is China's first Special Economic Zone (SEZ) created on the southeast coast.
In China, SEZ usually refers to seven specific zones: Shenzhen, Zhuhai, Shantou, Xiamen, Hainan, Shanghai Pudong New Area and Tianjin New Area. More on this later.
The main objectives of the SEZ program are to create additional economic activity, promote the export of goods and services, promote domestic and foreign investment, create employment opportunities and develop infrastructure facilities.
Seven special economic zones - all located on China's Pacific coast - are currently in operation. Shenzhen borders with Hong Kong. Zhuhai; Shantou; Xiamen; and Hainan Island in the far south. Pudong across the river from Shanghai. New Area adjacent to Tianjin Port.
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Respite care includes only community-based long-term care services.
a. true
b. false
Respite care includes only community-based long-term care services is a false statement.
A kid or adult's primary caregiver may receive planned or unplanned respite care.
In order to sustain and maintain the primary caring relationship, respite programs offer organized, brief, and time-limited breaks to families and other unpaid caregivers of children with developmental delays or behavioral issues, as well as individuals with intellectual disabilities or cognitive impairments.
The person receiving care has a good experience during a respite as well. In some nations, the phrase "brief break" is used to denote respite care.
Even though many families take great pleasure in caring for their loved ones so they can stay at home, the physical, emotional, and financial ramifications for the family caregiver can be overwhelming in the absence of some help, such as respite.
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Assume the mplt = 5 tennis rackets and mplb = 4 baseball bats. if the economy has 100 workers, then the economy can produce?
If the economy has 100 workers, then the economy can produce a maximum of 500 tennis rackets.
Given, MPLT = 5 tennis rackets
MPLB = 4 baseball bats Number of workers =100
So, if the economy has 100 workers, then, 5 × 100 = 500
Hence, the economy can produce 500 tennis rackets.
There are two main sources of growth of the economy. First is the growth in the size of the workforce and second, growth in the productivity of that workforce.
Hence, either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.
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Acne company has an agreement with a major credit card company that calls for cash to be:____
Acne company has an agreement with a major credit card company that calls for cash to be a variable cost.
Variable costs are fees that change as the extent of modifications. Examples of variable charges are raw substances, piece-rate hard work, production substances, commissions, shipping fees, packaging materials, and credit card costs. In a few accounting statements, the Variable fees of manufacturing are referred to as the “cost of goods offered.”
A variable cost is a price that adjustments in share to manufacturing output or income. While manufacturing or income boom, variable expenses increase; when production or income lower, variable prices lower.
Variable value system. To calculate variable costs, multiply what it costs to make one unit of your product via the full range of merchandise you've got created. This method looks like this: overall Variable charges = value in keeping with Unit x overall variety of units.
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According to mintzberg, managers in their informational role act as:________
a. nerve centers of the organization.
b. figureheads for the organization.
c. negotiators.
d. liaisons.
e. leaders.
According to the research, the correct option is c. According to mintzberg, managers in their informational role act as negotiators.
What is an informational role?According to the Canadian Henry Mintzberg in his theory of the 10 managerial roles that studies the behavior of managers and administrators of companies managers in their informational role exchange and process information.
The informational roles imply collecting, filtering the information acting as negotiators and giving it an importance weight that helps the performance of the organization or area in charge.
Therefore, we can conclude that according to the research, the correct option is c. According to mintzberg, managers in their informational role act as negotiators.
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______ of a security interest is the act of establishing the secured party's rights ahead of the rights of other creditors.
Perfection of a security interest is the act of establishing the secured party's rights ahead of the rights of other creditors.
A secured party under UCC Law is a person who obtains the benefit of a security interest created or provided under a security arrangement, whether or not there is a security obligation.
Security interest. Interest in collateral (eg, private property or equipment) to secure payment or performance of an obligation.
The collateral is interested in the proceeds when the collateralize transfers the proceeds to the collateral's property or when the collateral makes a financing statement on the proceeds.
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Which best describes the foundational assumptions of taylorism, also known as scientific management?
The foundational assumptions of Taylorism as a scientific management is best described as management of workers effectively and need to pay attention to psychological and social conditions, not just technical conditions.
What is taylorism in scientific management?The principle of Taylorism was developed by Frederick Taylor who desired to obtain the most efficient practices in the workforce as a mechanic manager.
The idea of Taylorism is scientific management process that involves dividing the specific tasks in a firm to allow employees to complete assignments as efficiently as possible.
Hence, the foundational assumptions of Taylorism as a scientific management is best described as management of workers effectively and need to pay attention to psychological and social conditions, not just technical conditions.
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What is the duty of the designated rbs certified person at a non-profit organization's temporary alcohol event?
There must be at least one RBS-certified individual on-site to oversee the alcohol service for non-profit groups that have obtained a temporary daily on-sale license or temporary daily off-sale license for an event. By the day of the event, this designated individual must have received their certification.
What is a nonprofit corporation?
Any company that has been legally established and is operated solely for charitable or nonprofit purposes is known as a nonprofit corporation. A nonprofit corporation may apply for official status as one, may be taxed differently from for-profit businesses, and may be handled differently in other ways depending on the rules of the jurisdiction.What kind of events sees the most drinking?On Fridays and Saturdays, the weekly variation in alcohol consumption was at its highest and was especially high on Christmas and New Year's Eve. On Christmas and New Year's Eve, on average, more people drank than on other weekends during the sampling period.Learn more about non-profit here:
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In describing what adaptive expectations means to a friend, you explain that in order to make their economic condition forecasts, agents?
In describing what adaptive expectations means to a friend, you explain that in order to make their economic condition forecasts, agents "Consider only the past and ignore current information". (Option C)
What are adaptive expectations?An hypothesized process by which individuals construct their expectations about what will happen in the future based on what has already occurred is known as adaptive expectancies in the field of economics.
For instance, if someone wants to predict the rate of inflation in the future, they may look at historical inflation rates to deduce some trends, and the more years they take into account, the more accurate their prediction would be.
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Full Question:
In describing what adaptive expectations means to a friend, you explain that in order to make their economic condition forecasts, agents?
A) Use both past and current information
B) Consider only current information and ignore the past
C) Consider only the past and ignore current information
Prepare a review of the literature on ? the balance scorecard and its links to developments in information technology? in relation to activity based costing. Review should be no longer than 1500 words. Use apa referencing style. Suggested structure although no specific structure is prescribed, you should include the following in your review of the literature. ? explanation of the balance scorecard including a brief summary of its origins. ? define the context to which you will be review the literature on bsc including the definition of any terms used ? outline the key issues identified in the literature ? outline the key findings of the literature ? any weaknesses and strengths ? your own.
An organization can discover and strengthen its internal processes with the help of a balanced scorecard, a strategic management performance indicator, to improve its external results. Based on a review of performance information from the past, organizations are given advice on how to make decisions in the future that will be more effective.
Prepare a review of the literature on the balance scorecard and its links to developments in information technology in relation to activity based costing. Review should be no longer than 1500 words.
The balanced scorecard (BSC), activity-based management (ABM), and activity-based costing (ABC) are well-known management techniques. They serve as the foundation of performance management frameworks. Resources, Activities, Products, Services, and Customers are just a few of the important business factors that ABC and ABM deliver cost and other business knowledge about. By using them, managers can make choices that enhance cost and profit performance. The BSC converts strategic objectives into a set of performance metrics that are balanced by the crucial performance characteristics. By defining success in quantitative terms at every level of the business, it facilitates communication and execution of the strategic plan. The BSC and ABC are frequently seen as separate approaches, each serving a different goal. But when combined, they are more valuable since they are complementary. The benefits of connectivity include more comprehensive decision assistance and more performance measures, for which ABC is the only reliable source. For the benefit of the BSC, ABC performance measures have been incorporated. These include the cost of activities and activity results in the BSC of public and private organizations' internal business process components. This activity information includes both significant company operations and supporting services. Private companies use ABC profit metrics by the client, market area, market segment, and distribution channel in the BSC's customer dimension. The BSC allows ABC to provide up to 20–30% of the performance measures. For instance, 22% of the data in the BSC were derived from the South's activity-based pricing model. The BSC's users profit from ABC's analytical skills. The real cost of maintaining a mile of highway, for instance, can be discovered by the manager of the transportation department to be more than the target set forth in the scorecard. The manager has access to comprehensive data via ABC regarding the tasks and materials involved in maintaining roadways. By performing a thorough "drill down" and analysis of this data in ABC, it may be possible to identify the main cause of the issue and take appropriate corrective action. Due to the invention of new measurement techniques including the Balanced Scorecard (BSC), performance prism, performance pyramid, economic value added (EVA), economic profit (EP), and self-assessment approaches, performance measurement (PM) has improved during the past 20 years. These developments may be seen as a reaction to the growing accounting issues that arise when business unit success is primarily measured using conventional financial accounting metrics like return on investment (ROI) and earnings per share (EPS). The majority of business units have intangible assets, which are assets that are not reflected on the balance sheet but which could significantly affect how successfully they run. Traditional accounting techniques ignore numerous non-financial factors in favor of focusing solely on financial performance. Additionally, these conventional financial indicators emphasize short-term performance and may provide false signals for ongoing innovation and improvement, which are crucial for today's competitive climate.
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Automobile manufacturers such as ford and general motors often use ________ distribution, such that dealers act as retailers.
Automobile manufacturers such as Ford and General Motors often use indirect distribution, such that dealers act as retailers.
What is Indirect Distribution ?An indirect distribution channel involves intermediaries that perform a company's distribution functions. Indirect distribution frees the manufacturer from certain startup costs and responsibilities that can cut into the time it needs to spend on running the business.
Plus, with the right vendor relationships, an indirect distribution channel can be much simpler to manage than a direct distribution channel. It can give a company welcome support and distribution expertise that the company may not have.
A chain of intermediaries through which a product moves in order to be made available for purchase by a consumer. An indirect channel of distribution typically involves a product passing through additional steps as it moves from the manufacturing business via distributors to wholesalers and then retail stores.
However, indirect distribution can also add new layers of cost and bureaucracy which can increase costs to the consumer, slow down delivery, and take control out of the manufacturer's hands.
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_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.
Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs and often include fees.
A cost-reimbursable contract is an agreement between two parties called the contractor and the owner. Here the contractor gets the reimbursement for the cost incurred while carrying out the work as per the contract, and also gets an additional fixed fee from the company or an owner.
Here the final pricing of the contract is determined later based on the underlying deal and the actual costs it took to complete a project given to the contractor.
Hence, cost-reimbursable contracts involve payment for direct and indirect actual costs.
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A company manufactures and sells a product for $113 per unit. the company's fixed costs are $61,760, and its variable costs are $83 per unit. the company's break-even point in units is:____.
A company manufactures and sells a product for $113 per unit. the company's fixed costs are $61,760, and its variable costs are $83 per unit. the company's break-even point in units is 232629.
Variable costs are costs incurred when the number of goods or services produced by business changes. Variable cost is the sum of the marginal costs of all units produced. It can also be considered a normal expense. Fixed and variable costs form the two components of the total cost.
Variable costs are costs that change with changes in quantity. Examples of variable costs include raw materials, parts labor, production materials, handling charges, shipping charges, packaging materials, and credit card fees. In some fiscal documents, the variable cost of production is called the "cost of goods sold."
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Gdp that has been adjusted for changes in the price level (inflation) is called?
Gdp that has been adjusted for changes in the price level (inflation) is called Real gross domestic product (real GDP)
A country's gross domestic product that has been accounted for inflation is known as real GDP. Compare this to nominal GDP, which calculates GDP using today's prices without taking inflation into account. Although the two indices track the same output, their applications—for changes in value versus changes in volume—are extremely different.
Real GDP gives a clearer insight of a country's rate of economic expansion. By using the GDP deflator to correct the data for inflation, you may determine how much economic output has increased (or decreased) independently of changes in prices.
A base year is chosen to account for inflation when calculating real GDP; the real GDP data record the quantities of products produced across time using prices from the same base year. Changes in volume rather than changes in value are reflected in the various real GDP numbers from different years.
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Suppose congress cuts taxes and leaves spending levels untouched. this will do what to interest rates and the dollar exchange rate?
Beginning with the fact that all government spending must be paid for by someone—by previous, present, or future generations—generational accounting can begin.
In other words, over an unlimited period of time, taxes must be sufficient to cover all government transfers, debt payments, and purchases of goods and services.That is known as the "inter-temporal budget restriction" by economists.
The concept of "generational balance," or the idea that the net tax rate should be the same for present and future generations, is fundamental to generational accounting.
The advocates of generational accounting draw the conclusion that fiscal policy is out of generational balance if the net tax rate for future generations is higher than the net tax rate for newborns. However, as we will argue shortly, this criterion is absurd.
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You are scheduled to receive $10,000 in one year. what will be the effect of an increase in the interest rate on the future value of this cash flow?
The present value of these cash flows is reduced by rising interest rates. as soon as interest rates rise.
National 30-Year Mortgage Rate Trends Today
For homeowners looking to refinance, today's national average 30-Year Fixed Refinancing Rate is 5.40%, which is It's up two basis points. Last time corresponds to the week. On Monday, August 8, 2022, the national average effective interest rate for 30-year fixed rate mortgages is 5.610%.
Mortgage interest rates are constantly changing. Therefore, a good mortgage rate can vary greatly from day to day. Currently, suitable mortgage rates for 15-year term loans are low in the high 3% or 4% range, while suitable interest rates for 30-year mortgages are generally in the high 4% or low range. . 5% range.
Mortgage interest rates are currently around 5.5% and are expected to rise to 5.5% to 6% by the end of 2022. %
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After the closing entries have been posted, the new balance in the retained earnings account will equal the retained earnings reported in the balance sheet.
a. True
b. false
After the closing entries have been posted, the new balance in the retained earnings account will equal the retained earnings reported in the balance sheet: (A) TRUE
What are closing entries?Closing entries are journal entries made at the end of a fiscal period to convert temporary accounts to permanent accounts. An "income summary" account can be used to demonstrate the difference between revenue and expenses, or it can be directly closed against retained earnings, from which dividend payments will be withdrawn. This procedure is used to return the temporary account balances to zero for the next accounting period.Following the posting of the closing entries, the new balance in the retained earnings account will equal the retained earnings recorded on the balance sheet.Therefore, the statement "after the closing entries have been posted, the new balance in the retained earnings account will equal the retained earnings reported in the balance sheet" is (A) TRUE.
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