Answer:
The utilities cost associated with 1,110 machine hours will be $10,505.
Explanation:
High Low method is a way to calculate the variable and fixed cost element of total cost using lowest level of activity and its cost and highest level of activity and its cost.
In this example The Highest activity of Machine hour is in the month of May and Lowest activity is in February.
Using high low method:
Variable cost = ( Highest activity cost - Lowest activity cost ) / ( Highest activity - Lowest activity )
Variable cost = ( Cost in May - Cost in February ) / ( Machine hours in May - Machine Hours in February)
Variable cost = ( $9,625 - $8,360 ) / ( 950 - 720 )
Variable cost = $1,265 / 230
Variable cost = $5.50 per machine hour
Fixed Cost = $8360 - ( 720 x $5.5) = $8360 - $3960 = $4,400
Utility cost of 1110 units = $4,400 + ( 1,110 x 5.5 ) = $4400 + $6,105 = $10,505
Answer:
Correct answer is A.
<u>Holly's basis is $98,000</u>
<u>Recognized Gain is $4,000</u>
Explanation:
Holly's basis = Carryover basis = $98,000
Recognized gain = Sale value - Basis
= $102,000 - $98,000
= $4,000
Answer:
loan markets, bond markets, and stock markets
Explanation:
If we want to buy and sell financial assets, be it money, bonds or shares, for example, it is necessary that there are so-called financial markets. We can distinguish 3 different types of financial markets, the difference lies in the type of assets that are traded in each of them
<u>Capital markets
</u>
In this type of market, stocks, bonds and bonds are traded. If we focus on the national level, we can distinguish several capital markets:
The stock market
Second markets for medium-sized companies
The AIAF private fixed income market
The public debt market (state, autonomous communities, municipalities…)
<u>Currency market </u>
In it instruments are bought and sold in different currencies. The most notable corresponds to the purchase and sale of spot and forward currencies
<u>
Money markets or loan markets</u>
In these markets, short-term financial assets are traded, these can be interbank deposits, company notes and treasury bills. These types of markets are also called money markets.
Answer:
Tax multiplier= 2,9
Explanation:
Tax multiplier represents the multiple by which gross domestic product (GDP) increases (decreases) in response to a decrease (increase) in taxes.
In the simple version of tax multiplier, it is assumed that any increase or decrease in tax affects consumption only (and has no effect on investment, government expenditures, etc.)
The formula is:
TMs=MPC/MPS=MPC/(1-MPC)
TMs= is the simple tax multiplier;
MPS= marginal propensity to save (MPS); and
MPC= marginal propensity to consume.
In this exercise, we do not possess the required information to use the general formula.
We need to use an alternative formula:
Decrease in taxes= change in GDP/tax multiplier
tax multiplier= change in GDP/Decrease in taxes
tax multiplier= 130,5billion/45billion=2,9
