Detailed Explanation to GDP Calculate the totals change in a year’s GDP A family sells a home, without using a broker, for $150,000. They could have rented it on the open market for $700 per month. They buy a 10-year…
ABC Company recorded the following information related to their inventory accounts for 2007:January 1, 2007 December 31, 2007Direct materials ? 37,000Work in process 38,000 41,000Finished goods 22,000 35,000ABC Company’s accounting records for 2007 indicated the following costs had been incurred:Direct…
Pumpkin Bags (PB) is a desiger of high quality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse. They use these designs for a…
Consider a monopolist facing the following demand and cost curves. P = 50 – 2Q C = 25+10Q (Hint: Total demand at any point P will be the summation of two quantities) Suppose the firm is able to separate its…
An individual, who has income I, cares only about two goods: X and Y. Their prices are Px and Py, respectively. The individual’s utility function is U(X,Y)=aln(X)+(1-a)ln(Y). Suppose that initially I=50 and Px=Py=5. Later, there is a change in Py…
Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $32,000 were put into production. Direct labor of $28,000 (10 workers x 200 hours x $14 per hour) was incurred. Manufacturing overhead equaled $60,000.…
Rebecca’s Pottery Loft makes a variety of handmade pottery items. She has asked for your advice on one of the items manufactured, a clay pelican. The following information is provided. Defective pelicans1,100Number of pelicans returned150Pelicans reworked200Profit per good pelican$10Profit per…
Calculate the weighted average cost of capital for a firm financed by 60 percent debt, 24 percent preferred stock, and the rest is common stock if their component costs are 8.5 percent 10 percent, and 18 percent respectively
The standard deviation of the market index portfolio is 20%. Stock A has a beta of 1.5 and a residual standard deviation of 40%. Requirement 1 (a) Calculate the total variance for an increase of .15 in its beta? (b)…
You were recently admitted to college, and your Aunt Tillie has agreed to fund the tuition for your education. The admissions representative at your college says that tuition might rise approximately 5 percent per year. Aunt Tillie has agreed to…
