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2 years ago

11

Suppose the abc bank has excess reserves of $4,000 and outstanding checkable deposits of $80,000. if the reserve requirement is

25 percent, what is the size of the bank's actual reserves?

1 answer:

lions [1.4K]2 years ago

5 0

The answer is 24,000

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A particular product line is most likely to be dropped when: Group of answer choices its total fixed costs are more than its con

Snezhnost [94]

Answer:

A particular product line is most likely to be dropped when:

its total fixed costs are more than its contribution margin
its variable costs are more than its fixed costs
its unavoidable fixed costs are more than its contribution margin.

Explanation:

The aim of every producer is to maximize profit and to make this possible, the cost of producing a particular product should fall below the contribution margin.

In the case that the gross profit is always negative due to high cost of production, further production should be discouraged.

The decision to drop a particular product line is usually reached when:

Its total fixed costs are more than its contribution margin: Here, the company will run at a loss. It is sustainable to continue production..
Its variable costs are more than its fixed costs: This is also an unfavorable situation that does not sustain mass production. Therefore, further production should discontinue.
its unavoidable fixed costs are more than its contribution margin: At this rate, profit cannot be maximized. It is a lose-lose situation for the company.

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2 years ago

Given the following data: Selling price per unit $ 2.00 Variable production cost per unit $ 0.30 Fixed production cost $ 3,000 S

Shkiper50 [21]

Answer:

Break Even Point in Dollars = $6,000

Explanation:

Break Even Point in Dollars = $\frac{Total \: Fixed \: Cost}{Contribution \: Per \: Unit}$ $\times$ Selling price per unit.

Total Fixed Cost = Fixed Production cost + Fixed Selling Expenses

Fixed Production Cost = $3,000

Fixed Selling Expense = $1,500

Total Fixed cost = $3,000 +$1,500 = $4,500

Contribution per unit = Selling price - Variable Cost per unit

Selling Price Per Unit = $2.00

Variable Cost Per Unit = Variable Production cost + Sales commission

Variable Production cost = $0.30

Sales Commission Cost = $0.20

Variable Cost per unit = $0.30 + $0.20 = $0.50

Contribution per unit = $2.00 - $0.50 = $1.50

Break-even point = $\frac{4,500}{1.5} \times 2 = 6,000$

Break Even Point in Dollars = $6,000

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2 years ago

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Why is it considered bad manners to leave the Subject field blank?

Bogdan [553]

It is noted as so due to the fact the reader would like to know the reasoning behind the message. Following that the bots used to monitor emails for scams, spam, or viruses typically send off empty subjects as a spam.

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2 years ago

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Casey has $1 comma 000 to invest in a certificate of deposit. Her local bank offers her 2.50% on a twelve-month FDIC-insured

frutty [35]

Answer:

the risk premium = return of the deposit - risk free deposit return

risk premium = 5.2% - 2.5% = 2.7% or $27 for a $1,000 CD

Besides the investment risk, Casey must also consider the inflation rate and taxes. The inflation rate lowers the real interest earned by Casey: real interest rate = nominal interest rate - inflation rate. And she must also find out how the return from the non-financial institution is taxed, if it can be taxed as capital gains or regular income.

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2 years ago

Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flo

agasfer [191]

Answer:

See below

Explanation:

Statement of cash flow for ATM SOFTWARE

• The figures seems to be in thousands already.

Cash flow from operating activities

Net income

$11,800

Increase in Account receivable

($4,030)

Decrease in Account payable

($1,730)

Depreciation expense

$5,435

Decrease in inventory

$1,445

Decrease in prepaid rent

$875

Net cash flow from operating activities

$13,795

Cash flow from investing activities

Sale of land

$8,590

Purchase of equipment

($39,715 )

Net cash flow from financing activities

($31,125)

Cash flow from financing activities

Issuance of stock

$12,925

Long term note payable

$16,345

Purchase of treasury stock

($2,585 )

Payments of dividends

($6,310)

Net cash flow from financing activities

$20,375

Net increase in cash

$1,725

Cash at the beginning

$8,215

Cash at the end

$9,940

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1 year ago