Answer:
1. When China decides to reduce its capital investment in the US, US's capital inflows, which are a source of loanable funds in the US, take a hit. This leads to a reduction in supply of loanable funds in the US, shifting the supply curve leftward.
2. When a ban is imposed on fast food restaurants, the amount loanable funds demanded by the fast food industry reduces, leading to a leftward shift m the demand curve of loanable funds.
3. When fast food restaurants are allowed to open franchised locations, the amount loanable funds demanded by the fast food industry increases, leading to a rightward shift m the demand curve of loanable funds.
4. When the US government reduces its deficit, it reduces its borrowings. A reduction in borrowing by the US government leads to a reduction in the demand for loanable funds, and therefore shifts the demand curve fur loanable funds leftward.
5. When individual start to spend more owing to the wealth effect, savings reduce, leading to a fall in the supply of loanable funds. Due to this, there occurs a leftward shift in the supply calve for loanable funds.
Answer:
(3) $3,750,000
Explanation:
The computation of the expect monthly sales to be as high is shown below:
Given that
Sales per month = $300,000
Royalty payments = 8% of sales
So, the expected monthly sales would be
= Sales per month ÷ Royalty payments percentage
= $300,000 ÷ 8%
= $3,750,000
We simply divided the sales per month by the royalty payment percentage i.e 8%
Answer:
operating Income = Sales – Variable Costs – Fixed Costs
A CVP analysis is used to determine the sales volume required to achieve a specified profit level. Therefore, the analysis reveals the break-even point where the sales volume yields a net operating income of zero and the sales cutoff amount that generates the first dollar of profit.
Cost-volume profit analysis is an essential tool used to guide managerial, financial and investment decisions.
COST-VOLUME PROFIT ANALYSIS
Contribution Margin and Contribution Margin Percentage
The first step required to perform a CVP analysis is to display the revenue and expense line items in a Contribution Margin Income Statement and compute the Contribution Margin Ratio.
Answer: Option A and B
Explanation: The given case relates to the law of supply.
As per the law of supply, the price and the quantity supplied of a good or service are positively related to each other. However there are other factors also which affects the demand such as the cost of production.
If the price of a commodity rises or its cost of production decreases then the profit margin of it increases for the supplier. This increased margin works as an incentive to produce and supply more to the market.
Hence the correct option is A and B.
Answer:
Adding the Print Preview and Print command to the Quick Access Toolbar
Steps:
Click on the down arrow on the Quick Access Toolbar, then click on the Print Preview and Print command.
Explanation:
The above steps yield the quickest means to add the Print Preview and Print command to the Quick Access Toolbar. This is preferred to Navigating to the Quick Access Toolbar and following some other steps. The Print Preview and Print command added to the Quick Access Toolbar helps Sally to easily preview her document before finally printing it as required.
