Answer:
b. $1,500
Explanation:
The computation of the total amount of manufacturing overhead is shown below:
= Assembly department + Fabrication department
where,
Assembly department equals to
= $30 × 40 machine hours
= $1,200
Fabrication department would be
= $12 × 25 direct labor hour
= $300
So, the total manufacturing overhead would be
= $1,200 + $300
= $1,500
Answer:
The answer is:
For italy: $35 billion
For Greece: -$40 billion
Explanation:
Injection into the economy = $70 billion.
Government spending multiplier is 1.5.
MPC = $70billion x 1.5
=$105 billion.
Change in Italy's real GDP due to the transfer = $105 billion - $70 billion
= $35 billion.
Greek Government.
Multiplier effect = 1 ÷ (1-MPC)
1 ÷ (1-0.6)
1÷ 0.4
-2.5.
It is negative because it is a reduction in government spending.
Therefore, the final change in real GDP as a result of this decreased spending is
-2.5 x $16 billion
= -$40 billion
Answer:
The Square Box should accept Project B only
Explanation:
Square Box should decide the project whose Net present value (NPV) of future cash inflow is higher than the initial cost of investment
NPV of cash inflow from Project A = 3,000/(1+12%)+7,000/(1+12%)^2+10,000/(1+12%)^3 = $15,377, lower then initial cost of $18,000 → deny Project A
NPV of cash inflow from Project B = 3,000/(1+12%)+7,000/(1+12%)^2+15,000/(1+12%)^3 = $18,936, higher then initial cost of $18,000 → accept Project B
Answer:
$1,280,000
Explanation:
We know that
Debt to equity ratio = Debt ÷ total equity
0.6 = $360,000 + $120,000 ÷ total equity
0.6 = $480,000 ÷ total equity
So, the total equity = $800,000
In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
= $480,000 + $800,000
= $1,280,000
