Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a firm's total fixed cost is $200 and its total variable cost is $600. If the price of the product is $5 per unity and the firm produces at its optimal level, the firm will earn an economic profit equal to

Answers

Answer 1

The firm will have no profit as it is facing downfall of $- 300 and will shut down if the same goes on.

Profit maximizing firms always produce where marginal revenue equals marginal cost so the firm produces a quantity of 100, the firms price is

P=5

we can now solve for profit. Profit is defined as

Pr=Total Revenue-Total Cost.

Total Revenue is equal to Price*Quantity

so we have TR=(5)*(100),

now we need to calculate total cost

TC= Total Fixed Cost+Total Variable Cost

so TC=200+600

which gives us the profit equation

Pr=500-800=-300.

The firm is suffering economic losses of $300

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Related Questions

Obed manages a large dry cleaning facility. Recently, he asked you how to make sure his facility has the best possible culture. What would you recommend to Obed in terms of choosing an organizational culture

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A sizable cleaning equipment facility run by Obed. He just asked for advice on how to make sure the atmosphere at his institution is positive. What advice would you give Obed.

What precisely does "organizational culture" mean?

Organizational culture refers to a company's beliefs, goals, and attitudes as well as how they influence how its employees behave. The corporate culture of a company affects how customers or suppliers engage with that company.

What examples of organizations are there?

Whether a for-profit or nonprofit corporation, the structure, ideals, psychology, and sociology of the organization are all included in the concept of organizational culture. Philosophy, beliefs, expectations, and experiences are only a few components of company culture.

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(Problem 2) Your study partner is confused by the upward-sloping short-run aggregate supply curve and the vertical long-run aggregate supply curve. How would you explain this? Choose the correct statement.
A. The short-run aggregate supply curve is upward-sloping because in the short run wages are flexible. The long-run aggregate supply curve is vertical because in the long run wages are sticky.
B. The short-run aggregate supply curve is upward-sloping because in the short run wages are sticky. The long-run aggregate supply curve is vertical because in the long run wages are flexible.
C. The short-run aggregate supply curve is upward-sloping because in the short run wages are sticky. The long-run aggregate supply curve is vertical because in the long run wages are also sticky.

Answers

Option 'B' is the proper choice because Since wages are sticky in the short term, the aggregate supply curve in the short run is upward-sloping. Because salaries are flexible over the long term, the aggregate supply curve, in the long run, is vertical.

Pay is sticky in the short term. As a result, production becomes more flexible at higher output prices, allowing a company to boost profits by producing more. Since quantity supplied rises with price level as a result, the aggregate supply curve is upward sloping in the short run.

Long term, all pricing is negotiable. The demand for labor will therefore rise along with the price of output when the firm reacts by producing more, which will raise wages. It is not profitable to expand output since the pay rise cancels out the price increase. Thus, the aggregate supply curve over the long run is vertical.

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Foud gallons of gaoline cost $16.80Using the rate, create an equation to represent the number of gallons,G, the cost in D dollars

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Gallons per dollar will fluctuate at a rate of change of 0.236, meaning that the cost of gallons per dollar will increase.

What do you mean by rate of change?

The rate of change is the gap between one quantity and one unit of another. The pace with which something changes as time passes is referred to as its "rate of change" (ROC). As a result, it is the speed of changes rather than their overall amount that matters (i.e., the rate). A tool used in business to understand price returns and identify trend momentum is rate of change.

Consider the speed of 3 metres per second.

According to what has been stated,

Gasoline for four gallons costs $16.80.

$16.80 for 4 gallons.

Add 16.80 to both sides.

$16.80/16.80 for 4/16.80 gallons

1 dollar = 0.236 gallons.

So, The required answer will be 0.236 gallons/dollar.

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To install the vinyl liner, it costs $1.95 per square foot. You have $1000 in your budget to spend on the liner installation. What is the largest pool you can get without going over your liner budget

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The pools have cylinder shapes with $r 1=24:text:ft radiuses. The average cost of replacing a vinyl pool liner is $2,349.

Most vinyl-lined pools start at between $65,000 and $85,000. Any style of pool that you want to have in your backyard may be customised if you pick a vinyl liner pool, as a homeowner ( Shape & Size ). Over a ten-year period, the upkeep for vinyl-lined pools is around $11,500. Is the pool's liner beginning to appear a touch tattered? Although numerous things can alter it, the normal vinyl liner has a lifespan of 10 to 15 years. Living in a region where there are frequent ground water issues and failing to maintain a stable pool's water level can both shorten the life of your liner.

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What are the trends that affect changes in an organization?

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The trends that affect changes in an organization are: Economic Conditions, Technological Advancements, Social and Cultural Changes, Government Regulations, Competitor Activity.

What is organization?
Organizations
are groups of people working together to achieve a common purpose. They are typically structured in a hierarchical manner, with each individual or group within the organization having a specific role to play. Organizations can be formal or informal, public or private, profit or nonprofit, and structured in a variety of ways. They can range from small businesses with a single owner, to massive global corporations with thousands of employees. Organizations can also be defined by their mission, goals, values, and culture. Organizations are vital to the functioning of modern society, and they are constantly evolving to meet the changing needs of our world.

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A​ ______ is an opportunity for threats to gain access to individual or organizational assets. A. target. B. phisher. C. threat. D. vulnerability

Answers

Answer:

c.threat

Explanation:

based on the information you used to create your schedule and curve, which product would you recommend the shoe hut focus on

Answers

Based on the data you used to develop your schedule and curve, Shoe Cut should concentrate on the running shoe category of products, in your opinion.

When the company's resources are on the PPF, they may be fully exploited ( Production Possibility Curve). Without sacrificing another good, it is impossible to produce more goods. For the purposes of the study, we can assume that combination B produces 12 units of running shoes and 2 units of hiking boots.

If the hiking boots are skipped, an additional 3 pairs of running shoes can be made. Running shoes can hold up to 15, while hiking boots can only hold up to 10. Therefore, Shoe Hut should concentrate on creating running shoe inserts.

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Correct Question:

Based on the information you used to create your schedule and curve, which product would you recommend that Shoe Hut focus on, and why? Provide details that support your answer.

Marketers are paying more attention to ethnic groups in the United States because Multiple Choice cultural and ethnic dimensions are being preserved, which creates marketing opportunities. the number of ethnic consumers is growing at a faster rate than other populations. the wealth of ethnic minorities is growing. ethnic minorities often share buying patterns that can be important to some businesses. All of these answers are correct.

Answers

Marketers are paying more attention to ethnic groups in the United States because cultural and ethnic dimensions are being preserved. The company itself is the primary element in the immediate environment that has an impact on the consumer.

The needs of customers attention who align with their core competencies are the main focus of successful marketing companies. corporations cultural that collaborate with other corporations. The company and its near impacts, such as rival businesses and Marketers partners, are included in the immediate environment. The consumer is the focal point of all marketing initiatives. Marketers are impacted by anything that influences customers. the company's corporate partners, competitors' capabilities, and competitive intelligence. Consumer behaviour is generally influenced by four elements.

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Meg Whitman, former CEO of HP, stated that early in her career she gained credibility and displayed competence through her focus on Multiple choice question. creating a successful track record. giving great presentations. giving many large gifts. keeping conversations short.

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A) Meg Whitman, the former CEO of HP, stated that her focus on building a successful track record helped her establish credibility early on and demonstrate competence.

What aids you in selecting each correct response on the fair test in communications?

A method for assessing your communications is the FAIR test. It enables you to evaluate how effectively you have presented the facts; how effectively you have granted access to your reasons, logic, and data; how thoroughly you have investigated effects on stakeholders; and how respectfully you have behaved.

What are some of the reasons a business might ask employees to sign confidentiality agreements?

You might ask your employees to sign an employee confidentiality agreement to prevent them from disclosing confidential information that could put your company's reputation at risk. Employee confidentiality agreements are used by businesses to safeguard innovative concepts, efficient procedures, distinctive goods, and customer data.

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Which of the following is not one of the phases of product design and development? 11. Specify product specifications 12. Conduct market test 13. Perform applied research. 14. Conduct design review. 15. Specify process specifications

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Perform applied research is not one of the phases of product design and development.

What is Perform applied research?

Identifying an issue that occurs in the actual world is typically where Perform applied research begins. A remedy is then sought after by applied psychologists through study.

Psychology might vary depending on a number of variables what kind of study is used. The particulars of the circumstance and the type of issue psychologists are attempting to resolve are included in this.

To see the issue as it manifests in the real world, researchers may choose to use naturalistic observation.

Once the cause of the issue has been identified, experiments may be carried out to examine potential fixes. Perform applied research may be difficulties while performing applied psychology research, just as there may be with any other type of research.

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Your local bank offers free checking for accounts with the balance at least of $500 Suppose you have a balance of $516.46 and you write a check for $31.96 How much do you need to deposit to avoid being charged of service fee

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To avoid charges, I must deposit $15.50. Checking accounts are ones that let you deposit and withdraw money. But verification is necessary to access the account.

Free checking is available from the neighbourhood bank for accounts with at least a $500 balance.

If I have $516.46 in my account and I wish to write a check for $31.96 to avoid fees, I must deposit:

$516. 46 - $500 = $16.46

The extra money to avoid charges is $16.46, but since I want to check more than that, I will deposit $15.50 instead.

$31.96 - $16.46 = $15.50

Depositing $15.50 will convert the additional funds to $31.96. I won't be charged because my balance will be at least $500 when I withdraw $31.96.

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psychographics is considered to be a measure of consumers' ______.

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Psychographics is considered to be a measure of consumers' lifestyles.

The psychological and cognitive characteristics of a consumer known as psychographics reflect their views, values, and ambitions. Psychographics and demographic data are combined in marketing to better understand and target consumers' buying patterns.

An individual's or group's attitudes, routines, and interests can be uniquely described by a psychographic profile. You can identify the people who would be most open to your organization's offering by looking at a group of consumer values and habits.

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Nathanson Corporation was organized on May 1. The following events occurred during the first month:a. $67,000 cash from the five investors who organized Nathanson Corporation. Each investor received 108 shares of $10 par value common stock. B. Ordered store fixtures costing $18,000. C. Borrowed $17,000 cash and signed a note due in two years. D. Purchased $19,000 of equipment, paying $1,300 in cash and signing a six-month note for the balance. E. Lent $1,200 to an employee who signed a note to repay the loan in three months. Received and paid for the store fixtures ordered in (b). Required:Prepare journal entries for each transaction

Answers

Additional Paid In Capital would be 61,600. A share is the smallest unit of stock in a company.

Calculation:

Events occurred in Nathanson Corporation: $67,000 in cash from five investors each received 108 shares of common stock with par value $10.

Debit: Cash (+a) 67,000

Credit: Common Stock (+se) 5,40 [5 * 108 = 540]

Credit: Additional Paid In Capital (+se) 61,600 [67000 - 540 * 10]

What does share stock mean?

A share is the smallest unit of stock in a company. Therefore, when classifying stocks to refer to specific characteristics, the correct word is share. Technically, share is a unit of stock. Ordinary and preferred shares refer to different classes of stock in a company

What distinguishes stock and stock?

Shares are financial instruments that represent partial ownership of a company. Stocks are financial instruments that represent partial ownership in one or more organizations. Two different shares in one company may have the same value.

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Procter and Gamble​ (PG) paid an annual dividend of $ 2. 87 in 2018. You expect PG to increase its dividends by 8. 0 % per year for the next five years​ (through 2023), and thereafter by 3. 0 % per year. If the appropriate equity cost of capital for Procter and Gamble is 8. 0 % per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2018

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The value per share at the end of the year 2018 is $73.47 .

What is dividend discount model?

The dividend discount model (DDM), a quantitative technique for forecasting stock prices, is based on the idea that, when discounted back to their present value, the price of a company's shares today is equal to the total of all of its future dividend payments. It aims to determine a stock's fair value regardless of the current market conditions and takes into account the dividend distribution considerations and the anticipated market returns. The stock is cheap and should be purchased if the value derived from the DDM is more than the price at which shares are currently trading, and vice versa.

Solution: As per dividend discount model, share price will be equal to present value of future dividends.

Dividend at the end of 2019 = 2.87*(1+8%)

Dividend at end of 2020 = 2.87*(1+8%)^2

Dividend at end of 2021 = 2.87*(1+8%)^3

Dividend at end of 2022 = 2.87*(1+8%)^4

Dividend at end of 2023 = 2.87*(1+8%)^5

hence share price at the end of 2018 = 2.87*(1+8%)/1.08 +2.87*(1+8%)^2/1.08^2 +2.87*(1+8%)^3/1.08^3+ 2.87*(1+8%)^4/1.08^4+2.87*(1+8%)^5/1.08^5 + 2.87*(1+8%)^5*(1+3%)/(8%-3%)*(1.08)^5

=2.87 + 2.87 +2.87 +2.87 +2.87 +59.122

=$73.47

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What is an example of comparison shopping?

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Comparative shopping can help you get the best deal on anything from a new television to laundry detergent to a new apartment rental. This entails comparing the prices of various goods and services.

What are the components of comparison shopping?

Before making a purchase decision, consumers frequently engage in the practice of comparison shopping, in which they compare the prices of multiple products from multiple retailers. Comparison shopping is particularly popular for purchases of higher-value goods and services because price is frequently a deciding factor.

What is marketing through comparison shopping?

Before making a purchase, consumers engage in comparison shopping, which involves comparing the prices of products or services offered by various providers and retailers. Customers can thus compare prices to find what they believe to be the best offer.

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During a listing presentation a seller asked a salesperson to: give an opinion of the list price, not disclose the seller's pending divorce, contact the seller at least weekly and give an opinion of the validity of the title. Which of the following should the salesperson NOT do?
1 Give an opinion of the list price.
2 Suggest improvements to increase value.
3 Contact them at least weekly.
4 Give an opinion of the validity of the title.

Answers

The salesperson during the listing of presentation should do all except give them an opinion on the validity of the title.

Which of the following should the salesperson NOT do?

Opinion regarding the validity of the title is a legal matter as the validity is determined by the advocate through legal jurisprudence and the salesperson should not have any opinion on this. A salesperson is an individua who is responsible for the sale of the product launched by any firm.

he should know all the details of the product like its use, benefits, cost and the why the product is better than other products available in the market.

He also has to report the firm about the number of sales he has done within a week, within a month and within a year. His salary totally depends on the number of sales he has done. He should also possess the knowledge about the target audience to whom he is going to sell the product.

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You deposit $300 in a bank account that pays 6% stated annual interest compounded quarterly. What is the value of your investment at the end of 10 years

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$544.21 is the value of your investment at the end of 10 years at deposited amount of $300 in a bank account that pays 6%.

given data:

deposited amount = $300

interest amount =  6%

the formula will be:

A=P(1+r/400)^4n

substitution the above values:

future value = $300(1+6/400)^(4*10)

                    = $544.21

Investments are financial commitments made to acquire assets in the hopes that their value would rise over time. Investment necessitates the loss of a current resource, such as time, money, or effort. In the world of finance, investment is done in order to profit from the asset being put to use. A gain (profit) or loss realised through the sale of a home or investment, unrealized capital gain (or loss), investment income like dividends, interest, or rental income, or a mix of capital gain and income may all be included in the return. The return may also include foreign exchange profits or losses as a result of shifting exchange rates.

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Opportunity costs are defined as Group of answer choices as the difference between the benefits from a choice and the benefits from the next best alternative as the value of the best alternative not chosen only in terms of money spent as the value of all the alternatives not chosen as the difference between the benefits from a choice and the costs of that choice

Answers

Opportunity costs are defined as a choice and the benefits from the next best alternative. So option b. is correct. Opportunity cost is the forgone advantage that would have been derived from an alternative not chosen.

To adequately assess the opportunity costs, the costs and benefits of every alternative available must be contemplated and reflected upon against the others. Evaluating the significance of opportunity costs can navigate people and organizations to better profitable decision-making processes. Opportunity cost is a precisely internal expense used for strategic consideration; it is not included in accounting gain and is left out of external financial reporting.

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Karen and Anika must identify the fixed costs of running Assist You 2. Those costs could include all of the following except

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Karen and Anika must determine the Assist You 2 fixed costs. All of the above expenses, with the exception of new customer meetings, may be incurred.

How do client meetings work?

Meetings with clients provide you the chance to develop or rebuild confidence and trust with leads, prospects, and current clients. You can make sure your customer meeting runs smoothly and successfully by comprehending the goal of the gathering, conducting sound logistical planning, thorough research, preparation, and planning, and being well-prepared. In this article, we'll go over how to organize and conduct a client meeting, along with some templates you may utilize.

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Consider the following account starting balances and journal transactions involving these accounts. Use T-accounts to record the starting balances and organize the offsetting entries for the transactions. The starting balance of Cash is $9,900 The starting balance of Inventory is $3,800 The starting balance of Retained Earnings is $21,400 Date Accounts and Explanation Debit Credit Mar 9 Retained Earnings 3 Cash 3 Consumed good or service and paid expense with cash Mar 10 Cash 40 Inventory 32 Retained Earnings 8 Sold and delivered product to customer Mar 11 Cash 25 Retained Earnings 25 Sold, delivered, and received payment for service with no clear associated cost What is the final amount in Retained Earnings

Answers

The final amount in Retained Earnings is $21,430. Delivered, and received payment for service with no clear associated cost.

Cash Account

Date Amount Date  Amount

Beginning balance $9,900.00 9-Mar $3.00

10-Mar $40.00    

11-Mar $25.00 Ending Balance $9,962.00

     

Total $9,965.00 Total $9,965.00

Inventory Account

Date Amount Date  Amount

Beginning balance $3,800.00 10-Mar $32.00    

Ending Balance $3,768.00    

Total $3,800.00 Total $3,800.00

Retained Earnings

Date Amount Date  Amount

9-Mar $3.00 Beginning balance $21,400.00

10-Mar $8.00

Ending Balance $21,430.00 11-Mar $25.00      

Total $21,433.00 Total $21,433.00

Final Amount in retained earnings = $21,430

Stock accounting is the body of accounting that offers to value and accounting for adjustments in inventoried assets. An organization's inventory commonly includes goods in three degrees of manufacturing: raw items, in-progress items, and completed goods that can be prepared for sale.

Stock refers to all the objects, goods, merchandise, and substances held via a business for selling in the marketplace to earn an income. example: If a newspaper supplier uses a vehicle to supply newspapers to the customers, handiest the newspaper can be considered stock. The automobile could be handled as an asset.

Inventory is a modern-day asset account determined on the balance sheet, which includes all raw substances, paintings-in-development, and finished items that an agency has collected.

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Think of a favorite product that you have. What do you think ALL of the things are that have to happen before you see the product in the store?

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The transformation of raw materials into finished goods. Natural items are transformed into goods that can be sold on the market through manufacturing.

What are the initial steps ?

The acquisition and monitoring of raw materials is the initial step in inventory management. The environment can be mined for raw materials or they can be purchased from sources. Once received, raw materials must be kept in storage until they are needed for manufacturing. Systems of inventory keep track of the quantity, location, and state of each raw item.

Work in process refers to the production process from storage to the assembly line. Production might be carried out internally or contracted out to manufacturers. Inventory management systems monitor the production process and the finished goods as they are produced in both scenarios.

The number, location, and state of each end product must be monitored. The system is updated in response to product purchases to account for the drop in inventory following distribution.

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Which of these actions would most likely decrease a person’s net worth for at least the next 6 months?

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Decreasing net worth, on the other hand, is cause for concern as it might signal a decrease in assets relative to liabilities.

What decreases your net worth?

When net liabilities exceed net assets, the condition is known as having a negative net worth. Deficit net worth, also known as negative net worth, can happen for a number of reasons, but it often happens when the value of present or future assets declines suddenly.

On the other side, declining net worth is a cause for concern as it can indicate a decline in assets compared to liabilities. The greatest approach to raise net worth is to either increase assets while obligations either remain constant or decline, or decrease liabilities while assets either remain constant or rise.

A current glimpse of your financial status can be found in your net worth. You may see the total of all you've made and spent if you compute your net worth today.

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SS5H3 EXPLAIN How the Great Depression and New Deal affected the lives of millions of Americans. a. DISCUSS the Stock Market Crash of 1929, Herbert Hoover, Franklin Roosevelt, the Dust Bowl, and soup kitchens. b. ANALYZE the main features of the New Deal; include the significance of the Civilian Conservation Corps, Works Progress Administration, and the Tennessee Valley Authority.

Answers

People used credit to buy things in the 1920s. People had few savings, but almost everyone was in debt. People were unable to repay their bank debts during the Great Depression, and the banks suffered financial losses.

Banks had also lost a lot of money in the stock market. By 1932, the banking system had collapsed. By 1933, 15 million people, or more than one-quarter of those looking for work, were unemployed. Many shantytowns sprang up as a result of a lack of funds for housing. To provide hot food, charities established soup kitchens. People used to go door-to-door looking for food or work at this time.

The Civilian Conservation Corps (CCC) recruited single, unemployed men aged 18 to 25. The men were paid $30 per month to work in parks and forests and lived in camps. It had a workforce of 3 million people.

The federal government established the Tennessee Valley Authority (TVA) in 1933 to supply electricity to the Tennessee River basin and surrounding areas. The TVA was also in charge of flood control. The TVA generated electricity through hydroelectricity.

The Works Progress Administration (WPA) constructed buildings, bridges, and roads, including the Golden Gate Bridge in San Francisco, in 1935. It also gave birth to theater, art, and writing. It employed approximately 8.5 million Americans.

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How are individuals and economy similar?

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The individuals and the economy are similar as they both must take a clear decision that on how to allocate the resources.

The individuals and economies are seen to be interrelated, as the economic activities of the individuals tend to impact the economy as a whole. Thus, the individuals and economies tend to refer to the collective economic activities which is of people in a certain region or area.

However, with the aspect of the allocation of the resources, both the individuals and the economy  must take a clear decision. So, it is important for both the individuals and the economies to manage their resources and make decisions about how to allocate them.

Hence, both the individuals and economies should also manage risk and uncertainty.

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Which of the following is NOT a characteristic of a successful incentive pay plan?
a. complex and comprehensive rules
b. simplicity
c. consistency with the organization's existing goals
d. clear and realistic goals
e. regular communication with employees about the incentive plan

Answers

Option (a), A good incentive pay plan DOES NOT include complicated and extensive restrictions.

What qualities make an incentive program effective?

For an incentive program to be effective, it must be both compelling and realistically attainable to keep participants motivated. According to general best practices, the aim should be set at the average success level, with 20% over that serving as a stretch goal having potential for earnings growth.

Systems of incentive payments may include what?

Employees' pay is not always limited to their set salary. The corporation reserves the right to offer various individuals or groups bonuses to improve it. Examples are the seniority bonus, activity bonus, Macron bonus, and bonus for attendance.

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development of regulatory mechanism in banking​

Answers

Answer:

The development of regulatory mechanisms in the banking industry has been an ongoing process to ensure the stability and integrity of the financial system.

Explanation:

This includes the implementation of rules and guidelines for banks to follow, as well as the establishment of independent agencies to monitor and enforce compliance. Some examples of regulatory mechanisms in banking include the Basel Accords, which set international standards for bank capital and liquidity, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which introduced stricter regulations on banks in the wake of the 2008 financial crisis. The goal of these regulatory mechanisms is to protect consumers and investors, prevent financial fraud and abuse, and maintain the overall stability of the banking system.

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If a company is using a skim pricing strategy and prices its product at a premium price, what happens with demand for its product

Answers

Since other companies will rapidly enter if they detect the product's available artificially high margins, skimming strategy might foster competition.

What is a skimming strategy for pricing?

Skimming is a pricing technique that involves setting initial product prices higher and then lowering them when rivals enter the market. Skim pricing is the reverse of price strategy, which sets low initial rates for newly released items in an effort to attract a large consumer base.

Skimming is a term used to describe reading quickly to get the gist of the material without paying attention to its deliberate and intricate meaning. Skimming will ensure that you make efficient use of your time while assisting you in finding the information swiftly.

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If gross income on a property is $84,000, net income is $40,000 and the cap rate is 7%, the value of the property using the income capitalization method is

Answers

Using the income capitalization technique, the property is worth $571,428.57.

How do you calculate the value of a property using the Income Capitalization Method?

The Income Capitalization Method is a commonly used method to estimate the value of a property using the net income generated by the property and the capitalization rate (cap rate).

The formula to calculate the value of a property using the Income Capitalization Method is:

Property value = Net income / Cap rate

In this case, the net income is $40,000 and the cap rate is 7%. So, the calculation is:

Property value = $40,000 / 0.07

= $571,428.57

So the value of the property using the income capitalization method is $571,428.57

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Violet has a FHA loan for $90,000. The lender is requiring a 1% discount point to the lower the interest rate. What amount is the lender charging for the discount point

Answers

A fee imposed either by lender to reduce the interest is known as a discounted point or point. Given that 1 point cost 1% of the loan balance and that the buyer is buying 3 points, the loan amount is $90,000 is multiplied by.01 to equal $900.00.

How Do Discounts Work?

A discount is a reduction in the regular sale price of a good or service, either in terms of money or as a percentage. A product may, for instance, be discounted by $10 from its list price or by 10% from its list price.

What is a discount in the workplace?

Discounts are reductions in a product or service's usual price made in an effort to generate or boost sales. These price cuts which are often usually called to that as sales or Both manufacturers and merchants use markdowns in a variety of businesses.

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A commercial property has a depreciable basis of $2,225,000. Using the straight-line method, what is the allowable annual depreciation for the property

Answers

A commercial real estate has a depreciable base of $2,225,000. Using the straight-line technique, the permissible annual amortization for the building is 57051.28.

In accounting, depreciation refers to two facets of the same concept: initially, the actual decrease in fair value of an asset, like the decline in value of industrial machinery every year as it is used and wears, and second, the allocation of a original cost of the asset to periods in which the investments are used in accounting statements. Thus, depreciation is the drop in asset value as well as the mechanism used to redistribute, or "write down," the cost of a physical commodity throughout its usable life period. Long-term assets are depreciated by businesses for tax and accounting purposes. The drop in asset value affects the financial statement of a firm or corporation, as well as the method of depreciation.

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