Answer:
The amount that Matsui would report in its year-end 2018 balance sheet for its investment in Yankee is $804992.
Explanation:
Year end balance = Beginning balance + Net income - Dividend
= $809,600 + (35,200*36%) - ($ 48,000*36%)
= $809,600 + $12672 - $17280
= $804992
Therefore, The amount that Matsui would report in its year-end 2018 balance sheet for its investment in Yankee is $804992.
b. Ms. Eaton comes up with a new plan to cut fixed costs to $210,000. However, more labor will now be required, which will increase variable costs per unit to $40. The sales price will remain at $68. What is the new break-even point?
c. . Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)?
a. Profitability will be less
b. Profitability will be more
Answer:
a. $584,800
b. $510,000
c. Profitability will be more
Explanation:
a.
Contribution Margin = Selling price - variable cost = $68 - $37 = $31
The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.
Break-even point = Fixed cost / Contribution margin ratio
Break-even point = $266,600 / ($31 / $68) = $584,800
b.
Contribution Margin = Selling price - variable cost = $68 - $40 = $28
Break-even point = Fixed cost / Contribution margin ratio
Break-even point = $210,000 / ($28 / $68) = $510,000
c.
As the break-even point is decreases it means the cost of associated with the product is decreased because the selling price remains constant. Although there is an increase in the variable cost but reduction in fixed cost has more effect than increase in variable cost.
Answer:
1) if the FED decides to strengthen then dollar, it will make US exports more expensive and imports cheaper. That will cause net exports to decrease, i.e. there will be less exports and more imports.
A strengthening of the US dollar helps importing companies because they will buy cheaper goods from abroad and will be able to sell them at higher domestic prices. On the other hand, exporting companies will be hit because hey loss competitiveness since their products will be more expensive.
2) If the FED decides to weaken the US dollar, the opposite will happen. Exporting companies will be favored, while importing companies will be hurt. The country will start to export more and import less.
3) Generally, the FED intervenes market through its money supply policy. When the interest rate increases or the money supply increases, the value of the US dollar will tend to lower. Even if expansionary monetary policy doesn't have an immediate impact, the expectations do matter. If people expect a devaluation of the US dollar, they will start to buy foreign currencies, which in turn will end up devaluating the US dollar. It is a self-fulfilled prophecy.
Another way the FED impacts businesses is through the interest rate. Lower interest rates will increase both domestic and foreign investment in the US.
Answer:
0.85
Explanation:
Given that
Dropped percentage of tuition and fees = 14%
Enrollment fall from 8,400 to 7,400
So, the cross elasticity between the two schools is
= Percentage change in quantity demanded of one good ÷ Percentage change in price of another good
where,
Percentage change in quantity demanded of one good equals to
= ($7,400 - $8,400) ÷ ($8,400)
= -11.9%
And, the percentage change in price of another good is -14%
So, the cross elasticity is
= -11.9% ÷ -14%
= 0.85
Answer:
1.8pesos
2.Price of Spam in Ecteria as well as in Wiknam will increase
Explanation:
8 Pesos per dollar=16/2=8pesos
Ans for 2)
Price of Spam in Ecteria as well as in Wiknam will increase
Answer:
B. Advantageous for both Norway and Sweden.
Explanation:
The full question is missing but have been attached as picture below.
Options Includes "A. advantageous for Norway but not for Sweden, B. advantageous for both Norway and Sweden, C. advantageous for Sweden but not for Norway, D. not advantageous for either Norway or Sweden"
Norway's opportunity cost of salted cod is 1 cloud berries and 2 cloud berries for Sweden. Since the international price lies between Norway's and Sweden's opportunity cost, it is beneficial for both of them.
The terms of trade in the asked scenario are 1.5 kilos of cloudberries for a kilo of salted cod. It's the rate at which these goods are exchanged for one another.
The term 'Terms of Trade' in economics is used to define the rate at which one country's goods are exchanged for another's. In the given scenario, the terms of trade are established at 1.5 kilos of cloudberries for a kilo of salted cod. This indicates that, in this specific situation, 1.5 kilos of cloudberries are considered equivalent in value to a kilo of salted cod. The ratio of the exchange (1.5:1 in this case) is what's referred to as the terms of trade.
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Answer:
The correct answer is: comparative advantage.
Explanation:
In Business, comparative advantage is an advantage that a company has over its competitors. The strategy relies on the company being able to produce at a lower comparative cost. This is achieved by lowering production costs or by introducing more efficient manufacturing strategies.
In Canada's case, the reopening of Voisey's Bay mine implies an opportunity to lower the costs of the commercialization of nickel since there will be more of that resource available for extraction.
Canada, being a significant nickel producer with the reopening of Voisey's Bay mine, is said to have a comparative advantage. This term refers to a country's ability to produce goods at lower opportunity costs compared to others, which allows Canada to efficiently produce and export nickel.
Canada's position as the world's second-largest producer of nickel, paired with the reopening of the Voisey's Bay mine, equips Canada with what is known as a comparative advantage in the global nickel market. A comparative advantage refers to a country's ability to produce a certain good or service at lower opportunity cost than its trading partners. In this case, due to the vast resources of nickel-bearing ore at Voisey's Bay, Canada has a cost advantage, which enables Canada to produce and export nickel more efficiently than other countries.
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