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vaieri [72.5K]
1 year ago
6

In macroland potential gdp equals $20 billion and real gdp equals $19.2 billion. macroland has a(n) ______ gap equal to ______ p

ercent of potential gdp.
Business
1 answer:
Jet001 [13]1 year ago
6 0
Potential GDP = $20 
Real GDP =$19.2  
so an output gap is measured relative to potential output and it is calculated according to the formula [( X - Y ) Ă· Y] Ă—100. In this case, the output gap is [($10 billion - $8 billion) Ă· $8 billion] Ă—100 = 25%.
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The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.70 per unit. H
Natalija [7]

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, fixed expenses total $200,000 per year. Its operating results for last year were as follows:

Sales $2,160,000

Variable expenses $1,080,000

Contribution margin $1,080,000

Fixed expenses $200,000

Net operating income $ 880,000

Answer:

$732,625

Explanation:

The contribution per unit is:

Contribution per unit = Selling price per unit - variable cost per unit - Sales commission per unit

Contribution per unit = $80 - $40 - $1.7 = $38.3 per unit

The increase in advertisement expense can be calculated under the new condition by the following formula:

New Sales ($) = (Fixed cost + Profit) * Sales Prices per unit  / Contribution Per unit

By putting values we have:

$2,160,000 * 125% = (Fixed cost + $360,000)* $80 per unit / $38.3 per unit

$2,700,000 * $38.3 per unit / $80 per unit  = Fixed Cost + $360,000

$1,292,625 - $360,000 = Fixed Cost

Fixed Cost = $932,625

This means that the maximum amount of increase in the advertisement expense would be $732,625 to earn a profit of $360,000

5 0
1 year ago
Read 2 more answers
John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for u
jekas [21]

Answer:

The right solution is "600000".

Explanation:

The given values are:

Cost of office furniture,

= $100,000

Cost of the computer system,

= $500,000

  • The changed MACRS enables a company to reduce the mortgage balance of such deteriorating properties over time.
  • Throughout the very first years, MACRS permits quicker depreciation although subsequently slows down depriving. This seems to be fantastic for corporations from a tax point of view.

Now,

The cost recovery deduction will be:

=  Office \ furniture+Computer \ system

On substituting the values, we get

=  100000+500000

=  600000

6 0
1 year 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

5 0
1 year ago
Evans' rule says that if n = 50 you need at least 5 predictors to have a good model.
olya-2409 [2.1K]
I believe that is false.
7 0
2 years ago
Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest paymen
miss Akunina [59]

Answer:

The effective annual rate on loan would be 8.24%

Explanation:

Formula for Effective annual rate ( EAR ) -

(1 + APR / Number of compounding periods in a year) ^ (Number of compounding periods in a year) - 1

where, the APR IS 8% ,

Number of compounding periods - 4 quarters

So now putting these values in the formula -

(1+8% / 4) ^4  - 1

= (1 + 2%) ^4  -1

= (1 + .02)^4  -1

= (1.02)^4 - 1

= 1.08243216 - 1

= .08243216

Now multiplying this by 100 to make it in percentage

= 8.24% ( approximately )

3 0
2 years ago
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