Answer:
Aggregate demand shifts to the right.
Explanation:
Tax rebate means that the people have a tax benefit that increases their disposable income.
When there is additional income available for people to spend, there is an increased demand that shifts to the right the aggregate demand curve.
It is unconnected to the supply curve and inflation so the correct answer is option A.
Hope that helps.
Answer: $112000
Explanation:
First, we calculate the book value in year 7 which will be:
= Depreciation × Balance life
= $400,000 × 3/10
= $120,000
Then, the cash flow as a result of the transaction will be:
= Asset sale - (Asset - Book value) × Tax rate
= 110000 - [(110000 - 120000) × 20%]
= 110000 - (-2000)
= 110000 + 2000
= 112000
Answer:
Cost Debit Credit
Work in Process inventory $574,000
Manufacturing overhead $163,000
Wages payable/Cash $737,000
Answer:
1. Is this a 17 percent loan?
- No, the loan charges a much higher interest rate
2. What rate would legally have to be quoted?
3. What is the effective annual rate?
Explanation:
effective annual rate = (1 + i/n)ⁿ - 1
using a financial calculator, i = 30% (PV = 20,000, PMT = -1,950, Nper = 12, FV = 0)
monthly interest rate = 2.5%
effective annual rate = (1 + 0.30/12)¹² - 1 = (1 + 0.025)¹² - 1 = 1.3449 - 1 = 0.3449 = 34.49%
APR (legal rate) = 2.5% x 12 = 30%
Answer:
By using vertical integration, Starbucks' main motive in introducing bakery products is to increase its:
value to customers by improving its product quality and overall organizational performance in the industry, and thus improving Starbucks' value chain.
Explanation:
Vertical integration is a corporate-level strategy which enables a company to own or control the supply, distribution, or retailing process to control the value or supply chain. Some of the advantages of vertical integration include controlling processes, reducing costs, and increasing efficiencies. This type of integration can be contrasted from horizontal integration, where a company acquires similar companies that are operating at the same value chain.
