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katen-ka-za [31]
2 years ago
12

Suppose that the consumer price index in Eastlandia rises from 150 to 159 over the past year, and that the city sets its car reg

istration prices so that real prices stay the same. If the cost to register a car was $50 last year, how much would it cost this year, in nominal terms?
Business
1 answer:
Mnenie [13.5K]2 years ago
4 0

Answer:

The Nominal Cost to register the car should be $53.

Explanation:

For the first year the data is given as

CPI=150

Nominal Price=$50

Real Income= Nominal Cost / Consumer Price Index

                    =50/150 = 0.33

Now for the second year as the real income is same as previous year thus

RI=0.33

CPI has increase to 159. Now the nominal cost is given as

Nominal Cost=Real Income * Consumer Price Index

Nominal Cost=0.33 * 159

Nominal Cost=$53

So the Nominal Cost to register the car should be $53.

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The Jensen family has owned Jensen's Country Furnishings since 1987 and Delores and Frank Jensen, grandparents and founders, mak
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Answer:

Top-Level Management

Explanation:

Your top management consists of CEOs, CFOs, Presidents and vice presidents, who are responsible for establishing the general management of an enterprise and ensuring that important organizational targets are accomplished.

5 0
2 years ago
The shoe company TOMS gives a pair of shoes to a needy child for every pair that it sells. This is an example of a company which
slega [8]

Answer: Corporate Social Responsibility

Explanation:

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The main objective of the corporate social responsibility is that it helps in boost the morale of an employee and also helps in increase productivity of the company.

According to the given question, the shoes firm TOMS denote the shoes to the needy children and this is one of the example of the corporate social responsibility in an organization.

Therefore, Corporate Social Responsibility is the correct answer.        

7 0
1 year ago
Faux Trees Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping
Arlecino [84]

Answer: $‭16,925.9‬0 increase

Explanation:

Company already has the excess capacity to handle this order so the fixed costs will not be included as they would have already been incurred.

Cost of manufacturing the trees would be:

= Variable cost + Fixed cost

= ((51.61 + 3.80 + 1.00 + 8.26 for white tree) * 230 trees) + 5,000 for molds

= (64.67 * 230) + 5,000

= $‭19,874.1‬0

Incremental revenue = 230 trees * 160

= $36,800

Incremental operating income = 36,800 - ‭19,874.1‬

= $‭16,925.9‬0 increase

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<em>Note: Options might be for a variant of this question. </em>

7 0
2 years ago
The ​ S&amp;P 500 index delivered a return of 10​%, 15​%, 15​%, and −25​% over four successive years. What is the arithmetic ave
natali 33 [55]

Answer:arithmetic average annual return per​ year= 3.75%

Explanation:

Year 1 = 10%

Year 2= 15%

Year 3 = 15%

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5 0
2 years ago
Marcie and her husband, Franklin, each own 50 shares of Chestnut, Inc. Sally, Marcie's old high school friend, owns the remainin
RSB [31]

Answer:

$38,000 Dividend

Explanation:

Based on the information given the tax treatment of the redemption to Marcie will be $38,000 dividend reason been that her husband shares was been attributed to her, and Since she owns 60 shares her remaining 10 shares including that of her husband 50 shares of Chestnut's will be 110 shares calculated as 150 shares - 40 shares outstanding.

Therefore when we look at this 60 shares/110 shares is greater than 50% which means that Marcie fails the 50% test which makes the redemption to be treated as a dividend.

Hence, the tax treatment of the basis of the shares redeemed will be $38,000 Dividend.

8 0
2 years ago
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