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bagirrra123 [75]
2 years ago
13

You have had $5,500 in a Roth IRA account for 3 years earning 1.2% annual interest. During those 3 years, the rate of inflation

was 1.8% per year. Did the purchasing power of your Roth IRA dollars increase or decrease over 3 years.
Business
1 answer:
erma4kov [3.2K]2 years ago
8 0

Answer:

Loss in purchasing power =$(96.67)

Explanation:

To determine the change in purchasing power, we will compare the value of the IRA after 3 years to its purchasing power in term the prices there years ago.

The value of 5,500 in 3 years time = 5,500 × 1.012^3 = 5700.385

The purchasing power of 57,000.38 in term's of the price 3 years ago

=5700.385504 × 1/(1.018^3)

= $5403.32

Change in purchasing power =  $5403.32 -  $5,500= $(96.67)

Loss in purchasing power =$(96.67)

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Digby's product manager is considering lowering the price of the Daft product by $2.50 and wants to know what the impact will be
Dvinal [7]

Answer:

D.  34.00%

Explanation:

The computation of the new contribution margin is shown below:

As we know that

Contribution Margin = Net Sales Revenue - Variable Expenses

where,

Net sales revenue is

= 604 units × $32.5

= $19,630

The variable expense = Total material cost + total labor cost

Total Material Cost = 604 units × $14.36 = $8,673.44

Total Labor Cost = 604 units × $7.09 = $4,282.36

So, the variable expense is

= $8,673.44 + $4,282.36

= $12,955.8

Now

Contribution margin = $19,630 - $12,955.8 = $6,674.2

And,

Contribution margin ratio = Contribution margin ÷ net sales

So,  Contribution margin = $6,674.2 ÷ $19,630

= 34.00%

4 0
2 years ago
Which of these transactions would produce $10,000 of revenue in December? (check all that apply) BOC Realty leases space to a te
Luba_88 [7]

Answer:

From the given question, the following transactions would produce $10,000 of revenue in December which are:

BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December = YES

BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January =YES

BOC Realty leases space to a tenant for December and January. the tenant pre-paid the $20,000 rent for the two months in November=YES and BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January =YES

Explanation:

Solution

Given that:

Now,

From the question stated it says that which of these transactions would produce $10,000 of revenue in December,

Thus,

BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December = YES

BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January =YES

BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January =YES

BOC Bank receives a check for $10,000 in December for November's interest amount =NO

BOC Realty leases space to a tenant for December and January. the tenant pre-paid the $20,000 rent for the two months in November=YES

6 0
2 years ago
Dorrance, the coach of the UNC women’s soccer team, has an eye for recruiting outstanding talent. In business language, this is
My name is Ann [436]

Answer: Selective hiring

Explanation: In the selective hiring process the managers of an organisation sets a criteria for the job available. While recruiting the managers sticks to the criteria strictly and only those employees are hired who fits that particular criteria.

In the given case, Dorrance wants to recruit someone with excellent skills in soccer, thus we can conclude that she is doing selective hiring.

5 0
2 years ago
Consider the all-units quantity discount schedule below. The annual demand is 90,000 units, setup cost is $1000 per order, and a
umka2103 [35]

Answer:

Using the lowest price of $210 offered by the supplier                                                                              

Annual demand (D) = 90,000 units

Set-up cost per order (S) = $1,000

Holding cost per item per annum =  30% x $210 = $63

EOQ = √<u>2DS</u>

                H

EOQ = √<u>2 x 90,000 x $1,000</u>

                   63

EOQ = 1,690 units

The correct answer is C

Explanation:

In this case, there is need to calculate the EOQ using the least price offered by the supplier. The least price gives the minimum total cost. EOQ is calculated as: 2 multiplied by annual demand and set-up cost divided by holding cost. The EOQ of 1,690 units gives the least total cost and thus recommended.

4 0
2 years ago
AV City stocks and sells a particular brand of laptop. It costs the firm $625 each time it places an order with the manufacturer
Sphinxa [80]

Answer:

Please consider the explanation below

Explanation:

a.Optimal order quantity per order = √2CO / I

= √[2*1500Units*625 ]/ (130)

=√1875000/130

=120 units per order

b.Minimum total annual inventory costs

Annually orders = 1500 / 120

= 12.5 times

Ordering cost = 12.5*625 = $7812

carrying cost = 120 units *$130 = $15600

Total annual inventory cost = $23412

c.The number of orders per year

= Annual denand / Optimum oder

= 15000 U / 120

= 12.5 times

• d.The time between orders (in working days)

= 364 / 12.5 (considered one leave)

= 29.12 days

=29 days

4 0
2 years ago
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