Answer: d) A unilateral contract
Explanation:
In a unilateral contract there is only one party to the contract that has to abide by the obligations specified and that is the offeror. The offeror offers to pay a certain amount of money if a certain thing is done. They will then pay the person that fulfills this service.
In this case, Darla is the offeror and she offers to pay anyone who can find her cat. When Noelle fulfills this service, Darla will then pay her what was promised. This is therefore a unilateral contract.
Briefly state the reasons why a company would not wish to distribute all its profits to its shareholders.
Answer:
Explanation:
The profits of a company may be used to invest in equipment, land or some other capital as a one time purchase.
the company may anticipate that they will not make a profit in the following year so they need the current year profits to absorb that loss.
Select any local/international brand of your choice
• Assess the advertisements of brand to identify the following:
o What factors of perception the brand Is implying to break clutter and gain attention?
o What type of learning theory is the brand using and how is it promoting memory retrieval with respect to the brand?
o How is the brand motivating the customer? (use theories to strengthen your answer)
o Describe the brands personality using the brand personality theory.
o Describe the message appeal being used in the advertisement and how?
Answer:
Following are the response to these questions:
Explanation:
Coca-Cola is my international brand this business leverages media and internet marketing, using TV and other social media platforms. The company uses cognitive and emotional learning theory to draw attention and promote memory restoration from branding.
The company's products ads are full of sadness to encourage customers to acquire their goods. Coca-Cola uses theory to establish its brand accurately that resonates with the correct customer. It aims to generate a positive emotional response in this context from a targeted consumer demographic. Its company's newest appeal message for the advertisement is 'Taste the feeling' and it causes people to feel like continuing to use Coca-Cola drinks.
As Kyle conducts his annual evaluations of his employees, he notices that Connie and Debbie have both been less productive since they were relocated in the same department. Kyle is in what stage of the managerial decision-making process?
Answer:
Identifying the problem or opportunity.
Explanation:
During this stage, Kyle is first trying to determine what aspects of the firm are troublesome or underperforming. The whole point of doing this is to identify the areas that need some actions or decisions made.
The next step would be to generate alternatives.
Suppose Brian and Crystal are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Brian chooses Right and Crystal chooses Right, Brian will receive a payoff of 5 and Crystal will receive a payoff of 6.
Crystal
Left Right
Left 6, 3 6,4
Brian Right 3, 3 7,4
The only dominant strategy in this game is for_____to choose____. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses____and Crystal chooses____.
Answer:
The only dominant strategy in this game is for Crystal to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses Right and Crystal chooses Right.
Explanation:
Given:
Crystal
Left Right
Brian Left 6, 3 6, 4
Right 3, 3 7, 4
A dominant strategy refers to a strategy that makes a player being better off regardless of the choice his opponent in a game.
It can be seen from the payoff matrix above that when Brian plays Left, Crystal chooses Right because 4 > 3. Also, when Brian plays Right, Crystal chooses Right because 4 > 3. The indication of this is that Crystal will always choose Right no matter what Brian chooses. This means that the dominant strategy for Crystal is Right.
On the other hand, when Crystal Chooses Left, Brian will also choose Left because 6 > 3. And when Crystal chooses Right, Brian will also play Right because 7 > 6. This is an indication that Brian does not have any specific strategy that makes him better off. Therefore, Brian does not have a dominant strategy.
Based on the analysis above, we have:
The only dominant strategy in this game is for Crystal to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses Right and Crystal chooses Right.
g Suppose a commercial bank has checkable deposits of $80,000 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves
Answer:
$32,000
Explanation:
The computation is shown below;
Required reserves = checkable deposits × legal reserve ratio
= $80,000 × 20%
= $16,000
Now the actual reserves is
= $16,000 + $16,000
= $32,000
Also excess reserve is equivalent to the required reserves
Hence, the actual reserves is $32,000
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. Instructions: In part a, round your answers to 2 decimal places. Enter positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? $ billion. How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion. b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt (because it maintains a balanced budget, G = T).
Answer:
a-1. Amount of rise in government expenditure required = $6.25 billion
a-2. Tax multiplier = -3
b. The combination is as follows:
Increase in spending = $25 billion
increase in taxes = $25 billion
Explanation:
a-1. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? $ billion.
Spending multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 4
Amount of rise in government expenditure required = Change in aggregate demand / Spending multiplier = $25 / 4 = $6.25 billion
a-2. How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion.
Tax multiplier = - MPC / (1 - MPC) = - 0.75 / (1 - 0.75) = -3
Amount of tax cut required = Change in aggregate demand / Tax multiplier = $25 / (-3) = $8.33 billion
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt (because it maintains a balanced budget, G = T).
The amount is the amount of the balanced budget, which has a multiplier of one. This indicates that spending and taxes need be increased by $25 billion each to boost GDP by $125 billion. Therefore, the combination is as follows:
Increase in spending = $25 billion
increase in taxes = $25 billion
Suppose that a share of common stock is expected to pay a $3 dividend one year from now, and thereafter each annual dividend payment will increase by 4% over the prior payment. The effective annual interest rate is 12%. Find the modified duration of this share of stock.
Answer:
13
Explanation:
Modified duration of stock = (1 + Growth rate) / (Effective rate - Growth rate)
Modified duration of stock = (1 + 4%) / (12% - 4%)
Modified duration of stock = (1 + 0.04) / 0.08
Modified duration of stock = 1.04 / 0.08
Modified duration of stock = 13
So, the modified duration of this share of the stock is 13.
Select a commercial or Public Service Announcement (PSA) that uses an emotional appeal/Pathos.
Identify the organization along with the topic/issue presented in the PSA or commercial.
Using the information in this section, how would you characterize the way it persuades listeners with emotion?
Is it effective in persuading you as a listener? Why or why not?
Include a Reference page citing the source in APA format.
Write your response in a letter form.
Answer:
An announcement that applies an emotional appeal attempts to urge an emotional reaction from the general public so on suits the message contained within the announcement.
Select a commercial or public service announcement that uses an emotional appeal.
A public service announcement that shows the aftermath of environmental pollution
Using the information in this section, how would you characterize the way it persuades listeners with emotion?
When the general public feels guilty about not having the ability to try to do something about environmental degradation, there'll be a change from the utilization of inorganic to the use of organic materials. When companies that pollute the environment are charged or closed down, and when the people resort to planting more trees.
Is it effective in persuading you as a listener?
Yes.
Why or why not?
It is very effective in persuading because the listeners put themselves in the situation and feel the effect of not taking care of the environment.
Discuss your findings with your classmates.
When people feel guilty for not taking care of the environment, they're going to take social action aimed toward correcting things. The people imagine how the planet is going to be like 50 years from now and picture how their children and grandchildren will survive. they're therefore compelled to try to do something so on contribute to environmental protection and to support the ecology.
A company has these balances as of december 31
cash 20000 fixed assets 35000 accumulated depreciation 20000 accounts payable 5000
what are the total assets?
Answer:
Total asset = 55000
Explanation:
Below is the following calculations:
Cash amount = 20000
Fixed assets = 35000
Accumulated depreciation = 20000
Accounts payable = 5000
The total assets = Cash + fixed assets
Total asset = 20000 + 35000
Total asset = 55000
Not- Accumulated depreciation should be deducted from the gross assets.
Required: Monson sells 15 units for $20 each on December 15. Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Amounts to be deducted should be indicated with a minus sign. Round cost per units to 2 decimals.)
Answer:
The costs assigned to ending inventory are $11.33 per unit and $340 total cost.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each.
Purchases on December 7 10 units at $ 6.00 cost
Purchases on December 14 20 units at $12.00 cost
Purchases on December 21 15 units at $14.00 cost
Required: Monson sells 15 units for $20 each on December 15. Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Amounts to be deducted should be indicated with a minus sign. Round cost per units to 2 decimals.)
The explanation of the answer is no provided as follows:
Periodic inventory refers to an inventory system that is updated on a periodic basis such as monthly, quarterly, or annually.
The weighted average method is a formula that divides the cost of products offered for sale by the number of units available for sales.
Combining these two methods, we have:
Value of Purchases on December 7 = 10 * $6.00 = $60
Value of Purchases on December 14 = 20 * $12.00 = $240
Value of Purchases on December 21 = 15 * $14.00 = $210
Total value of units available for sale = $60 + $240 + $210 = $510
Total units available for sale = 10 + 20 + 15 = 45
Costs assigned to ending inventory per unit = Weighted average cost per unit = Total value of units available for sale / Total units available for sale $510 / 45 = $11.33
Units of ending inventory = Total units available for sale – Number of units sold = 45 - 15 = 30
Total cost of ending inventory = Units of ending inventory * Weighted average cost per unit = $11.33 * 30 = $340
Therefore, the costs assigned to ending inventory are $11.33 per unit and $340 total cost.
Investment A cost 12,000 today and it pays back 15,500 two years from now. Investment B cost $8,000 today and it pays back $6,000 each year for two years. If Interest of 5% is used, which alternate is superior? (Hint: Use present worth your cost is negative and your profits are positive) Group of answer choices
Answer:
Investment "B" is superior.
Explanation:
Below is the calculation of each investment net present worth.
Net present worth of Investment A = -12000 + 15500(P/F, 5%, 2)
Net present worth of investment A = -12000 + 15500 (0.9070)
Net present worth of investment A = 2058.95
Net present worth of Investment B = -8000+ 6000(P/A, 5%, 2)
Net present worth of investment B = -8000 + 6000 (1.8594)
Net present worth of investment B = 3156.4
Investment "B" is superior because its net present worth is greater.
The Dulac Box plant works two 8-hour shifts each day. In the past, 1000 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 20%. Productivity is now approximately:____.
A) 32.5 boxes/hr.B) 40.6 boxes/hr.C) 62.5 boxes/hr.D) 81.25 boxes/hr.E) 300 boxes/hr.
Answer:
The Dulac Box
Productivity is now approximately:____.
= 75 boxes/hr
Explanation:
a) Data and Calculations:
Number of shifts per day = 2
Each shift works 8 hours
Total hours worked each day = 16 hours
Number of cypress packing boxes produced each day = 1,000
Productivity per hour = 62.5 boxes/hr (1,000 boxes/16 hours)
Increase in productivity from the use of new technology = 20%
Therefore, the number of cypress packing boxes produced each day will increase by 20% to 1,200 boxes (1,000 * 1.2)
New Productivity per hour = 75 boxes/hr
Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive marketing practices would be seriously flawed because it would mean punishing business on the basis of what the FTC thinks might happen rather than on what actually does happen.
a. True
b. False
Answer:
True
Explanation:
This is true because the Federal Trade commission(FTC) analyze and investigate a seller or sellers who may be so cooperative as to make agreements that ensure large amounts of profit for them which is likely harmful and exploitative to consumers . FTC investigates business mergers which may be horizontal or vertical that are likely done for the purpose of increasing market share and fostering a sort of monopoly of the market. However, mergers and cooperation among businesses in the market do not always yield a monopoly and the FTC may be wrong(sometimes) to wave mergers that could increase the quality of goods or services in a market
Accounts receivable arising from sales to customers amounted to $85,000 and $75,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $285,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is Group of answer choices $285,000. $295,000. $445,000. $275,000.
Answer:
$295,000
Explanation:
Cash flow from Operating Activities
Net Income $285,000
Adjustment for change in working capital :
Decrease in Accounts receivable $10,000
Net Cash Provided by Operating Activities $295,000
The calculation of WACC involves calculating the weighted average of the required rates of return on debt and equity, where the weights equal the percentage of each type of financing in the firm's overall capital structure.
(rstd, rps, rs, rd)
_______ is the symbol that represents the required rate of return on short-term debt in the weighted average cost of capital (WACC) equation.
Co. has $2.3 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt?
a. 0.42
b. 0.18
c. 0.40
d. 0.16
Answer:
a. 0.42
Explanation:
Calculation to determine What would be its weight on debt?
First step is to calculate the Total firm capital
Total firm capital= $2.3 + $1 + $2.2
Total firm capital= 5.50 million.
Now let determine the weight on debt using this formula
Weight on debt= Debt in the firm/ Total firm capital
Let plug in the formula
Weight on debt = $2.3 million/ 5.50 million
Weight on debt = 0.4182.
Weight on debt=0.42 (Approximately)
Therefore What would be its weight on debt is 0.42
The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicates dividends payable of $43,200 at the beginning of the year and $38,900 at the end of the year.
Required:
What was the amount of cash payments to stockholders during the year?
Answer: $164,300
Explanation:
Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.
= Beginning dividends payable + Dividends for the year - Ending dividends
= 43,200 + 160,000 - 38,900
= $164,300
Mô hình cổ điển cho rằng đất đai là yếu tố quan trọng của tăng trưởng, đồng thời là yếu tố giới hạn của tăng trưởng
A young college student on a tight budget is campaigning for an open city council seat. A friend in her economics class estimates that voters are influenced by TV and newspaper ads according to the following function: Votes = 300TV0.6 NP0.2, where TV represents the number of television ads and NP represents the number of newspaper ads. Thus, the marginal product of a newspaper ad is 60TV0.6 NP–0.8 and the marginal product of a TV ad is 180TV–0.4 NP0.2. A local television ad costs $400, and a local newspaper ad costs $250. If the candidate needs 1,800 votes to win, what is the lowest-cost combination of newspaper and TV ads that will bring her victory?
Answer:
Explanation:
..
A property manager can refuse to rent to applicant Mike for any of the following reasons except which? Mike has changed jobs six times in the past six months. He is married with two children. Mike has been late with his rent payments seven times in the past year. He had a serious physical altercation with his downstairs neighbor.
Answer:
He is married with two children
Explanation:
Types of Real Estate property
1. Industrial
2. Commercial
3. Agricultural
3. Special-purpose
4. Recreational
5. Investment etc.
Four types of tenancies.
They includes;
1. Term for years (or fixed term)
2. Periodic tenancy
3. Tenancy at will
4. Tenancy by sufferance
Leasehold
This is often called rent. It is an estate in a land that gives the tenant the large(exclusive) right of possession for the time period (duration) of the lease.
There are several reasons why a property owner may deprave a tenant or someone from renting a particular house or place but not because of marriage or children.
Lease may contain a list of certain prohibited activities on or about the rented premises such as:
(1) Pet on Property
(2) Smoking-
(3) Commercial activities
(4) Number of occupants-
Baxter Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 5.6 percent coupon bonds on the market that sell for $1,094.30,page 160 make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par
Answer:
The coupon rate the company should set on its new bonds if it wants them to sell at par is 4.86%.
Explanation:
The coupon rate can be determined by calculating the yield to maturity (YTM) using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) * Number of semiannuals in a year = RATE(nper,pmt,-pv,fv)*2 .............(1)
Where;
YTM = yield to maturity = ?
nper = number of periods = number of years to maturity * number of semiannuals in a year = 20 * 2 = 40
pmt = semiannual coupon payment = face value * (annual coupon rate / number of semiannuals in a year) = 1000 * (5.6% / 2) = 28
pv = present value = current bond price = $1,094.30 = 1094.30
fv = face value of the bond = 1000
Substituting the values into equation (1), we have:
YTM = RATE(40,28,-1094.30,1000)*2
Inputting =RATE(40,28,-1094.30,1000)*2 into excel (Note: as done in the attached excel file), we have
YTM = 4.86%
Therefore, the coupon rate the company should set on its new bonds if it wants them to sell at par is 4.86%.
Hartford, Inc. manufactures a single product. Shown are projected revenues and costs based on last year's income statement (8,000 units) and practical capacity (10,000 units). The costs are either variable, fixed, or mixed (part variable and part fixed.) You need to figure out what the cost type is based on the cost behavior.Last Year(8,000 units) Practical Capacity(10,000 units) Total Per Unit Total Per UnitRevenue $800,000 $100.00 $1,000,000 $100.00Costs: Direct Material $200,000 $25.00 $250,000 $25.00Direct Labor $160,000 $20.00 $200,000 $20.00Mfg. Overhead $180,000 $22.50 $200,000 $20.00Selling Expenses $40,000 $5.00 $50,000 $5.00Admin. Expenses $50,000 $6.25 $50,000 $5.00Total Costs $630,000 $78.75 $750,000 $75.00Pre-Tax Profit $170,000 $250,000 RequiredAssume that Hartford expects to sell the same number of units as last year in their normal distribution channels (8,000 units). They have received an offer from a one-time customer (not part of their normal customer mix) to buy 1,000 units (additional to their expected normal sales) at a price of $71. By how many dollars would pre-tax profit increase or decrease if Hartford accepts the special order? (9 points)
Answer:
Hartford, Inc.
If Hartford accepts the special order, the pre-tax profit would increase by
= $21,000.
Explanation:
a) Data and Calculations:
Production and sales capacity last year = 8,000 units
Practical capacity = 10,000 units
Last Year Practical Capacity
(8,000 units) (10,000 units)
Total Per Unit Total Per Unit
Revenue $800,000 $100.00 $1,000,000 $100.00
Costs:
Direct Material $200,000 $25.00 $250,000 $25.00
Direct Labor $160,000 $20.00 $200,000 $20.00
Mfg. Overhead $180,000 $22.50 $200,000 $20.00
Selling Expenses $40,000 $5.00 $50,000 $5.00
Admin. Expenses $50,000 $6.25 $50,000 $5.00
Total Costs $630,000 $78.75 $750,000 $75.00
Pre-Tax Profit $170,000 $250,000
Variable cost per unit $50.00 $50.00
Fixed cost $230,000 $250,000
Sales revenue from the one-time customer = $71,000
Variable cost per unit 50,000
Additional pre-tax profit (increase) $21,000
Penelope withdraws $4,115.23 at the end of a five-year investment yielding 4% interest, compounded annually. How much did Penelope originally deposit
Answer:
$3,382.42
Explanation:
The amount originally deposited by Penelope (PV) can be determined using a Financial calculator as follows :
FV = $4,115.23
PMT = $0
N = 5
I = 4 %
P/YR = 1
PV = ?
The PV is $3,382.42
thus,
Penelope originally deposited $3,382.42
Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project. This is an example of Group of answer choices logrolling. the median voter model. the paradox of voting. the principal-agent problem.
Answer: logrolling
Explanation:
Logrolling simply refers to the exchange of favors specifically. It is the practice of exchanging assistance which is fine usually in politics when each other's proposed legislation is voted for.
Since Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project, this is logrolling.
The management of Penfold Corporation is considering the purchase of a machine that would cost $360,000, would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $50,000 per year. The company requires a minimum pretax return of 9% on all investment projects. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.):
Answer:
the net present value is -$72,050
Explanation:
The computation of the net present value is shown below
= $50,000 per year ×PVIFA factor at 10 years for 9% - $360,000
= $50,000 ×5.7590 - $360,000
= $287,950 - $360,000
= -$72,050
hence, the net present value is -$72,050
So the same should be relevant and considered too
Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.20 a share. Secondly, the company announced that all future dividends will increase by 5% annually. What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return
Answer:
44
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
2.2 / 0.1 - 0.05 = 44
At the end of each quarter, Patti deposits $1,100 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in 4 years
Answer:
Future value = $22172.56
Explanation:
Below is the given values:
Deposit made at the end of each quarter = $1100
Interest rate = 12% or 12% / 4 = 3%
Number of year = 4years
Number of compounding period = 4 x 4 = 16
Future value = Annuity x [ (1 + r)^n - 1] / r
Future value = $1100 x [ (1 + 3%)^16 - 1] / 3%
Future value = $22172.56
Suppose a company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk. To accomplish that objective, which of the following must the company do?
a. The duration of its liabilities must be longer than the duration of its assets.
b. The duration of its liabilities must equal the duration of its assets.
c. The duration of its liabilities must be shorter than the duration of its assets.
Answer: b. The duration of its liabilities must equal the duration of its assets
Explanation:
Since the company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk, then the duration of its liabilities must equal the duration of its assets.
It should be noted that when the duration of its liabilities is shorter than the duration of its assets, the duration gap is positive and when there's a rise in interest rate, the worth of assets will be affected more.
When duration of its liabilities is longer than the duration of its assets, the duration gap is negative and when there's a rise in interest rate, the worth of liabilities will be affected more.
Finally, when the duration of its liabilities is equal the duration of its assets, its equity is unaffected by interest rate risk.
Differential cost is ______. Multiple select question. also known as incremental cost the same as opportunity cost the difference in cost between two alternatives never relevant to a product decision
Answer:
I. also known as incremental cost
II. the difference in cost between two alternatives
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Differential cost is also known as incremental cost and it is the difference in cost between two alternatives.
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.
The differential cost is called the incremental cost, and it is the difference in the cost that lies between two alternatives.
The following information should be relevant:
It is the difference between the cost of 2 alternative decisions or the output level is varied.It is also known as the incremental cost.Therefore we can conclude that the differential cost is called the incremental cost, and it is the difference in the cost that lies between two alternatives.
Learn more about the cost here: brainly.com/question/15135554
The expenditure and income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP:
1. Daesun pays Awesome Foods Market $1,100 to cater his daughter's engagement party. He's attracted by Awesome Foods Market's guarantee that he'll be happy with the catering, or he'll get his money back.
2. Awesome Foods Market pays JoAnn's Catering $950 to cater the party.
3. JoAnn's Catering buys plasticware worth $200 from Kostko.
Required:
Compute contributions to GDP, using the expenditure approach.
Answer:
Only the amount spent by Manuel would be in included in the calculation of GDP
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
the airplane purchased by the airline would be used to provide services for airline customers. Also, the packing boxes bought by Amazon would be used in delivering goods to customers
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Pace Corporation has requested an estimate to rebuild its spot welder. Second Chance estimates that it would require 39 hours of labor and $2,800 of parts. Compute the total estimated bill
Answer:
a. 42.40%
b. $3,995.20
Explanation:
Full question is "Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Chance Time Charges $198,800 Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs $39,800 9,300 27,720 $76,820 56,800 7,100 $262,700 The company desires a $35.00 profit margin per hour of labor and a 23.00% profit margin on parts. It has budgeted for 7,100 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2017 will be $396,000 ▼ (a)Compute the rate charged per hour of labor (b) Pace Corporation has requested an estimate to rebuild its spot welder. Second Chance estimates that it would require 39 hours of labor and $2,800 of parts. Compute the total estimated bill "
Labor rate = ($262,700/7,100) + $35
Labor rate = $37 + $35
Labor rate = $72
a. Material loading % = ($76,820/$396,000) + 23%
Material loading % = 19.3989% + $23
Material loading % = 42.40%
b. Total estimated bill = (39 * $72 per hour) + ($2,800 * 42.40%)
Total estimated bill = $2,808 + $1,187.20
Total estimated bill = $3,995.20