The relationship between overall price levels and total demand is not always obvious or direct. However, in the broadest sense, rising aggregate demand is correlated with rising price levels.
When the components of aggregate demand—consumption spending, investment expenditure, government spending, and spending on exports less imports—increase, so does aggregate demand.
Aggregate demand and price level: what are they?The total amount of finished products and services that are demanded in an economy is measured by aggregate demand. The total amount of money exchanged for those goods and services at a particular price point and period is how this measurement is expressed.
The price level represents the average of the current pricing for all goods and services produced.
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in the long run: a at least one input is variable and one input is fixed. b all inputs have marginal product equal to zero. c all inputs are fixed. d all inputs are variable. e inputs are neither variable nor fixed.
In the long run all inputs are variable. Hence Option D is the answer.
Define variable inputs in production.A resource or production component that may be quickly altered by a company in an effort to alter output volume is known as a variable input. In short-run production, the majority of businesses use a variety of variable inputs, namely labor, raw materials, and energy. Variable factors are those whose employment varies in proportion to output; more are employed when production rises and fewer when production falls.
Labor, energy, and raw materials employed directly in production are examples of typical variable elements. Labor is the most typical example of a variable input. The additional inputs required by a company to increase short-run production are provided by a variable input. The capacity constraint in production, on the other hand, is provided by a fixed input, such as capital.
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if a stock has a beta greater than 1.0, then its expected return a. will be 0. b. is greater than the market portfolio. c. is the same as the market portfolio. d. is less than the market portfolio.
(b) Greater than the market portfolio.
This is because in a market, beta greater than 1.0 will tend to produce above-average returns - but will also produce larger losses in a down market.
What is the portfolio ?
Portfolio is the collection of wide rages of assets that are owned by investor. the Portfolio collection includes financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a Portfolio.
What are the components of a Portfolio?
Components of a Portfolio
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the information gap that international investors face is further complicated by the differences in blank conventions, which makes the analysis of cross-border investments opportunities challenging. multiple choice question. accounting exchange rate borrowing segmenting
The information gap that international investors face is further complicated by the differences in exchange rate conventions, which makes the analysis of cross-border investment opportunities challenging.
Contemporary worldwide change fees are decided by using a controlled floating change rate.
A controlled floating change price method that each currency's value is tormented by the economic movements of its government or significant bank.
The change charge is the rate of a rustic's money on the subject of another country's money.
An alternate fee is “constant” when nations use gold or every other agreed-upon popular, and each forex is worth a selected measure of the metallic or other trendy.
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In an essay of no fewer than 225-words, describe the importance of continuing education in law enforcement and some of the areas in which it has become even more important in recent years.
The importance of continuing education in law enforcement and some of the areas in which it has become even more important in recent years as police with four-year degrees use force less frequently, use less force overall, get fewer complaints and disciplinary proceedings, and produce stronger investigative reports.
Although the field of law enforcement may have been reluctant to fully see the benefits of education as a supplement to specialized job-related training, more and more administrators now see it as a crucial part of a comprehensive shift to community-based policing. The problem-solving abilities required for officers to function effectively in this context are improved through continual education as police move to connect with individuals in new ways and handle a wide variety of topics that affect crime problems in a community.
Revisions to mission statements necessitate far-reaching abilities in organizations across the nation. Higher educational levels, together with improved technical, management, and interpersonal abilities, are all part of a bigger strategy for improved professionalism.
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Where would you measure angles?
A) Driveline components
B) Bolt
C) Fasteners
D) All of the above
Driveline components (option A) are where I would measure angles.
What is angle measurement?The amount of rotation from point A to point B is described as an angle measurement. It is important to mention that the if the rotation is carried in a clockwise direction, then such an angle is called a positive angle. If the rotation is carried out in the anticlockwise direction. Then such an angle is called a negative angle.
Driveline components are described as the various components in a vehicle that allows the wheels to rotate by transferring power to the wheels from the transmission. Angles are measured in a driveline and the angle is kept within one degree with respect to the other components.
It can be concluded that driveline components (option A) are where I would measure angles.
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Michael noticed an inaccuracy in his credit report and he is interested in applying for a new credit card next month. Which action should he take?.
As he noticed an inaccuracy in his credit report but also interested in applying for a new credit card next month, the proper action will be to report to the Credit bureau.
What is the role of Credit bureau?Basically, a credit bureau refers to the credit reporting agency that collects and researches individual credit information and sells it to creditors for a fee so they can make decisions about extending credit or granting loans.
Most time, these credit bureau collects and researches about an individual credit information and thus sells it to the requesting creditors for a fee so they can make decisions about granting loans.
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last year a country had exports of $100 billion, imports of $70 billion, and purchased $60 billion worth of foreign assets. what was the value of domestic assets purchased by foreigners? a. $30 billion b. $40 billion c. $10 billion d. $70 billion
The value of domestic assets purchased by foreigners is $10 billion.
Domestic property means flora, assets and equipment of a home Subsidiary. home belongings method any acquired property owned through a home seller which aren't difficulty to a overseas Governmental Authority and concerning which no Consent of a overseas Governmental Authority is required pursuant to this agreement.
An asset is any resource or proper used to generate cash waft, lessen prices, or offer future monetary advantages for an character, government, or enterprise. property comprise financial fee and can benefit a business enterprise's operations, boom the price of a business, or improve an individual's net worth.
An asset is an entity from which the monetary owner can derive a gain or collection of blessings in future accounting intervals through preserving or the use of the entity over a time period, or from which the monetary owner has derived a benefit in past intervals and continues to be receiving a gain within the contemporary duration.
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regarding proper ethical accounting guidelines, which, if any, of the following is correct? a.if a client has made a mistake in a prior year's return and refuses to correct it, the accountant should withdraw from the engagement. b.if the exact amount of a deduction is not certain (e.g., around mid-$600s), it should be recorded as an odd amount (i.e., $649) so as to increase the appearance of greater certainty. c.the use of client estimates in preparing a return may be acceptable. d.under no circumstances should a question on a tax return be left unanswered.
Integrity, objectivity, professional competence and due care, confidentiality, and professional behavior are the guiding principles of the Code, which establishes the expected behavior of a professional accountant (PA) and reflects the profession's understanding of its duty to serve the public interest.
What is meant by ethical accounting guidelines?Integrity, objectivity, professional competence and due care, confidentiality, and professional behavior are the guiding principles of the Code, which establishes the expected behavior of a professional accountant (PA) and reflects the profession's understanding of its duty to serve the public interest.
In order to prevent the exploitation of financial information or managerial positions, accounting ethics refers to adhering to certain norms and guidelines established by regulating organizations.
The updated Code creates a theoretical framework for all professional accountants to assure adherence to the following five core ethical principles:
Integrity.Objectivity.Professional Competence and Due Care.Confidentiality.Professional Behavior.Therefore, the correct answer is option a. The use of client estimates in preparing a return may be acceptable.
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learner company sells its product for $100. it has a variable cost ratio of 70% and total fixed costs of $9,000. what is the break-even point in sales dollars for learner company?
To calculate the break-even point in terms of sales dollars, divide the fixed costs by the contribution margin.
Break-even sales dollars = $30,000
How do you calculate break-even point in sales dollars?To calculate the break-even point in terms of sales dollars, divide the fixed costs by the contribution margin. ...Fixed Costs Contribution Margin = Break-Even Point (sales dollars).Contribution Margin = Product Price minus Variable Costs.The point at which a company's revenues equal its costs is known as the break-even point. The break-even point can be calculated in two ways: one is to determine the number of units that must be sold, and the other is to determine the amount of sales, in dollars, that must occur.1 - Variable Cost Ratio = Contribution Margin Ratio
Contribution margin ratio = 1 - 0.70 = 0.30
Break-Even Sales Dollars = Total Fixed Cost / Contribution Margin Ratio
Break-even sales dollars = $9,000 / 0.30 = $30,000
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the following financial information is from cook company: accounts payable$ 55,000 land90,000 inventory10,500 accounts receivable7,500 equipment8,000 deferred revenue58,500 short-term investments20,000 notes receivable (due in 8 months)45,500 interest payable2,000 patents75,000 what is the amount of intangible assets assuming the accounts above reflect normal activity? multiple choice $120,500. $75,000. $95,000.
The correct answer is: $173,000
This answer is in fact, the calculation to determine the amount of long term assets (which is basically the investment of a company that is going to benefit it in long run or future in many years) after by using the formula of :
Long-term assets =Land +Equipment + Patents
By plugging values in the formula, Long-term assets =$90,000 + $8,000 + $75,000. So, Long-term assets =$173,000. Therefore the number of long-term assets will be $173,000.
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the fixed cost in manufacturing a single led monitor is $40 and the variable cost is $12. if the company expects to manufacture 5,000 monitors, the total costs would be
multiple choice question company a sold 200,000 units. selling price is $7 per unit, contribution margin is $4 per unit, and the fixed expenses total $632,000. company a's profit (loss) is blank . multiple choice question. ($32,000) $18,000 $168,000 $768,000
A company with multiple choice questions sold 200,000 units. $7 is the selling price, $4 is the contribution margin, and $632,000 is the fixed expense total. Profit (loss) for company A is left blank. query with several options. ($32,000) $18,000 $168,000 $768,000
Unit sales goal is 6,000 units fixed expense.
The sales price less the variable cost per unit is what is referred to as the contributing margin company. The breakeven point is also known as the point at which expenses are equal to revenues. The equation is given by Contributing margin = 36,000/4000 and Breakeven= Fixed cost/Contributing margin 4,000.
Target unit sales equal (1800+3600)/9 Contributing margin = $9 Target unit sales equal (profit target+fixed cost)/contributing
Unit sales goal is 6,000 units company.
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economic growth is the amount that the capital stock increases in a given year. b. economic growth is the increase in the amount of consumption goods per capita. c. economic growth is increases in per capita real gdp measured by its rate of change per year. d. economic growth is the increase in the number of people working in a year.
Economic growth can be described as (C) the increases in per capita real GDP measured by its rate of change per year. It is also can be described as the increase or improvement in the inflation-adjusted market value of the services and goods produced by an economy over a certain period of time.
Economic growth can be caused by several main factors, such as land, capital, entrepreneurship, and labor. Economic growth also can be caused by two main sources of economic growth, such as growth in the productivity (output per hour worked) of that workforce and growth in the size of the workforce. These two main source can increase the overall size of the economy. But the source for increase per capita GDP and income is only strong productivity growth.
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a manufacturing defect is one which: group of answer choices none of the other choices are correct occured during the manufacturing stage and for which the consumer will be compensated ocurred after the manufacturing stage and for which the consumer will not be compensated ocurred after the manufacturing stage and for which the consumer will be compensated ocurred during the manufacturing stage and for which the consumer will not be compensated
A manufacturing defect is one that occurs during the manufacturing process and for which the consumer will receive compensation.
Stage of production.
Any of the following stages of a product's production: I manufacturing/synthesis of the applicable Compound or Compounds' Bulk Chemical Form, (ii) formulation, and (iii) packaging of the Finished Dosage Form
Manufacturing is the process of creating a product from raw materials. This is accomplished through the use of human labor, machinery and/or other tools, and, in some cases, a biological or chemical process.
Manufacturing can be done on a large scale, or it can make the parts that are assembled to make automobiles, airplanes, household appliances, and other items.
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in 2025, the robinson company switched its inventory method from fifo to average cost. inventories at the end of 2024 were reported in the balance sheet at $22 million. if the average cost method had been used, 2024 ending inventory would have been $20 million. ending inventory in 2025 is $23 million using average cost, and would have been $26 million if the company had not switched from the fifo method. the company's tax rate is 25%. the effect of the change in method on 2025 income before taxes is a:
A million dollars less will be made before taxes in 2025 as a result of the method change.
First In, First Out (FIFO): What Is It?First In, First Out, also known as FIFO, is a method of managing assets and valuing them that prioritizes the sale, use, or disposal of assets that were produced or acquired first.
For taxation purposes, FIFO presumes that the cost of goods sold on the income statement includes the assets with the oldest costs (COGS). The assets in the inventory that are still available are compared to those that were just bought or made.
Calculation:
Inventory's average cost rose by $3 million ($23 million minus $20 million).
There would have been a $4 million increase in FIFO inventory ($26 million minus $22 million).
As a result, selling costs at average cost are $1 million higher than selling costs at FIFO.
This lowers net income by $750,000 and income before taxes by $1 million.
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an interest rate of 1% per month is the same as: a) nominal 3% per quarter compounded monthly. b) effective 12.683% per year compounded monthly. c) nominal 12% per year compounded monthly. d) all of the above.
High street banks establish interest rates that are influenced by factors other than the Bank Rate. Other factors, such as the possibility that a loan won't be repaid, are taken into account when making loans. The bank will charge a higher rate the lender believes the risk to be larger.
Effective annual compound interest of 12.683% monthly.
interest rate equals 1% monthly
To convert to effective per year, use the formula
[(1+1/100)12 - 1].100\s
= [(1.01)¹² - 1] 100\s
= (1.1268 - 1) (1.1268 - 1) 100\s
= 0.1268 × 100\s
= 12.68%
Therefore, the annual percentage rate of interest, compounded each month, is 12.68%. The length of the loan or mortgage that you intend to take out may also be a factor. Our interactive graphic allows you to view the historical interest rates for various financial products.
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maribel just took a job with a recycling company. her job is to search for potential customers that need to get rid of their recyclable materials or those customers who wish to buy recycled materials for processing. maribel's job fits into the first step of the personal-selling process, that of
Maribel's job fits into the first step of the personal selling process, which is that of: C. prospecting.
What is personal selling?Personal selling can be defined as a type of sales technique which typically involves selling a good (product) directly to a buyer, especially by establishing a face-to-face system of communication with the person.
This ultimately implies that, personal selling requires that a sales representative (sales rep) would physically meet up with the buyers in order to facilitate the completion of a business transaction.
In conclusion, a sales representative (sales rep) whose job is to search for potential customers that wishes to get rid of their products is referred to as prospecting.
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Complete Question:
Maribel just took a job with a recycling company. Her job is to search for potential customers that need to get rid of their recyclable materials or those customers who wish to buy recycled materials for processing. Maribel's job fits into the first step of the personal selling process, that of Multiple Choice
preapproach.
advertising.
prospecting.
sales promotion.
gaining commitment.
you have one type of nut that sells for $4.60/lb and another type of nut that sells for $8.70/lb. you would like to have 32.8 lbs of a nut mixture that sells for $8.10/lb. how much of each nut will you need to obtain the desired mixture?
28 lbs of the expensive $8.70/lbs nuts and 4.8 lbs of the cheaper $2.50/lbs is required in order to obtain 32.8 lbs of a nut mixture that sells for $8.10/lbs i.e., the desired mixture.
What are linear equations ?If a variable consistently exhibits its maximum power, an equation is considered to be linear. Another name given to linear equation is a one-degree equation. The typical form of a linear equation with one variable is Ax + B = 0. In this case, the variables x and A are variables while the variable B is a constant. The traditional form applies to a linear equation with two variables is Ax + By = C. In this case, we have the variables x and y, the coefficients A and B, and the constant C.
Let C be the cheaper nut that costs $4.60/lbs and E be the expensive nut that costs $8.70 :
4.6C + 8.7E = 32.8(8.10)
4.6(32.8-E) + 8.7E = 265.68
150.88- 4.6E + 8.7E = 265.68
4.1E = 265.68 -150.88
E = 114.8/4.1
E = 28 lbs
C = 32.8 - 28
C = 4.8 lbs
Therefore, the required quantity of the expensive $8.70/lbs nuts is 28 lbs and cheaper $2.50/lbs nuts is 4.8 lbs.
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the production possibilities frontier illustrates group of answer choices the combinations of output that an economy should produce. the combinations of output that an economy should consume. the combinations of output that an economy can produce. all of the above are correct.
The production possibilities frontier illustrates the combination of output that an economy can produce.
An economy is a place of the production, distribution and trade, in addition to consumption of goods and offerings. In popular, it's far described as a social area that emphasize the practices, discourses, and fabric expressions related to the manufacturing, use, and management of scarce resources'.
An economy is a machine of inter-associated production and intake activities that in the long run decide the allocation of resources within a collection. The manufacturing and intake of products and services as an entire satisfy the needs of those residing and running within it.
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a limitation of 1,550 machine-hours per week prevents golden leaf manufacturing company from meeting the sales demands for its products. the product information is as follows: r1 r2 r3 r4 unit selling price $450 $300 $175 $300 unit variable costs (300) (125) (100) (150) unit contribution margin $150 $175 $75 $150 machine-hours per unit 10 10 10 15 assuming demand for each product is as follows: r1 50 units; r2 80 units; r3 25 units; and r4 10 units, what is the best short-run profit maximizing strategy?
The best short-run profit maximizing strategy is $23,450.
A monopolistically competitive company optimizes profits or minimizes losses in the short run by producing the amount where marginal revenue equals marginal cost. The company will make an economic profit if the average total cost is lower than the market price.
How is short-run profit determined?
Profits from the sale of an asset that a company has owned for less than a year are referred to as short-term profits. By deducting the price, you paid for an asset at the beginning of the year from the sale price you got for the item, you may figure out your short-term gains. Four important elements can contribute to profitability. Costs are coming down, turnover is going up, production is going up, and efficiency is going up.
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which of the following is not insured by the fdic? question 6 options: retirement account. savings account. certificate of deposit. money market savings account. g
The option that is known to not be insured by the FDIC would be the certificate of deposit.
What is the FDIC?This is the term that is sued to refer to the agency that has to do with the regulation that is done in the financial market in the United States of America.
They are the ones that would help to raise the stability and the confidence that the people of the United States would need to have in these monetary systems.
The FDIC is known to provide all that we have here but the certificate of deposit.
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when most workers are classified as not being in the labor force, when in reality they are actively searching for work, then the unemployment rate will be
In a case whereby most workers are classified as not being in the labor force, and in reality they are actively searching for work, then the unemployment rate will be Neither understated nor overstated .
What is an unemployment?An unemployment can be described as the term that is been used in referring to the situation whereby someone that is employable and fit with the necessary skill can not find job in a particular economy.
It should be noted that the case that is been described in the question fall under the categories of Neither understated nor overstated because they were still looking for a job.
Therefore, the second option is correct.
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Check the missing options:
Overstated Neither understated nor overstated Either understated or overstated Understated
nformation regarding the defined benefit pension plan of certainty services included the following for 2021 ($ in millions): plan assets, january 1$70 plan assets, december 31 105 retiree benefits paid (end of year) 17 employer contributions to the pension plan (end of year) 42 what was the actual return on plan assets for 2021?
The actual return on plan assets for 2021 will be $10 million
We know that,
Actual return can be found using the formula:
Beginning balance + actual return + contributions − retiree benefits paid = ending balance
($70) + (AR) + ($42) - ($17) = ($105) (in millions)
simplifying the equation,
70 + Ar + 42 - 17 = 105
112 - 17 + AR = 105
95 + AR = 105
AR = 105 - 95
AR = 10
Thus, The actual return on plan assets for 2021 will be $10 million
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18. sardi company estimates its 2015 tax expense to be $80,000. it makes a cash payment of $20,000 to the tax authorities on december 31, 2015. how should this transaction be recorded by sardi? debit tax expense $80,000; credit cash $60,000; credit taxes payable $20,000 debit tax expense $80,000; credit cash $20,000; credit taxes payable $60,000 debit tax expense $80,000; credit cash $20,000 debit tax expense $80,000; credit cash $20,000; credit accounts payable $60,000
Debit tax expense $80000 credit cash $20000, credit taxes payable $60000
tax expense estimated by the company in the year 2015 is $80000
Cash payment to the tax authorities on December 31, 2015, = $20000
So the balance tax to be paid is equal to 80000 - 20000 = 60000
Hence initially the company need to debt tax expense $80000
Then the credit cash is $80000
The provision to be made credit taxes payable $60000
Hence Debit taxes paid ($60,000), credit cash ($2,000), and credit tax expense $80000
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when preparing the statement of cash flows using the indirect method, one of the purposes of adjusting net income for changes to certain balance sheet accounts is to
One of the purposes of adjusting net income for changes to certain balance sheet accounts is to convert the net income to cash.
What is statement of cash flows and what is the purpose of adjusting net income ?A cash flow statement is a financial statement that provides aggregate data of all cash in flows.Here in the question is asked one of the purpose of adjusting net income for changes to certain balance sheet accounts.Net income is the net earnings which is calculates as sales minus cost of goods, and other operating expenses.Hence when preparing the statement of cash flows using the indirect method, one of the purposes of adjusting net income for changes to certain balance sheet accounts is to convert the net income to cash.To know more about net income visit:
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What type of competition does a pizza parlor vs. an ice cream shop represent?
Answer:
Explanation:
Its an indirect competition because we know that a pizza parlor and ice cream shop belong to the same sector i.e. Food but in case of products sold we can observe that pizza is not the same product as an ice cream because one is considered as a fast food while other is mainly eaten as a dessert. If the pizza shop sold ice cream along with pizzas tooo then we might have come across a direct competition to some point.
But in this case the sector is same but the products sold are different therefore this competition can be considered as an indirect competition between the two parties.
Therefore we can conclude from the above statements that we can classify this competition as an indirect competition.
what is the price today (in dollars and cents) of a stock whose dividend per share is currently $1.80 and who expects to pay this same dividend per share at the end of each future year forever? that is, the assumption is that the current dividend per share will never change. the stock's required rate of return is 7.25%.
The current price of the stock would be $24.82
What is stock?
A stock, usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle its owners to a share of the company's assets and income in proportion to the number of shares they possess.
Most individual investors' portfolios are built on stocks, which are mostly bought and sold on stock exchanges. Government standards designed to shield investors from dishonest tactics must be followed during stock trades. In order to raise money to run their operations, corporations issue stock, and the holder of that shares, known as a shareholder, may be entitled to some of the company's assets and earnings.
Calculate the price today as follows:
Price today = dividend / Required rate of return
Price today = $1.80 / 7.25%
Price today = $24.82
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g identify which offering process is typically used for treasury debt securities? group of answer choices a. brokered b. competitive c. direct listing d. negotiated
Competitive (Auction) is a government-identified offering method that is commonly utilized for treasury debt securities.
What are treasury debt securities?United States Treasury securities, often known as Treasuries or Treasury, are government debt instruments issued by the United States Department of Treasury to fund government expenditure rather than taxation.
Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation-Protected Securities are the four forms of marketable Treasury securities. The government auctions off these securities through the Federal Reserve Bank of New York, after which they can be sold in secondary markets.
Treasury securities are backed by the full confidence and credit of the United States, which implies that the government guarantees to repay them using any legally possible methods. Despite the fact that the United States is a sovereign authority with no recourse, its track record of repayment has earned Treasury securities a reputation as one of the world's lowest-risk investments. Treasuries have a unique niche in the financial system because of their low risk, where they are utilized as cash equivalents by institutions, businesses, and affluent investors.
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in 2022, wilma (who files as a head of household) reported regular taxable income of $150,000. she itemized her deductions, deducting $10,000 in charitable contributions and $2,000 in state income taxes. what is wilma's alternative minimum taxable income?
According to the given information, Wilma's alternative minimum taxable income is $152,000.
Total alternative minimum taxable income = Regular taxable income +
State tax income + Exemptions
There are no exemption claims in this question.
Regular taxable income =$150,000 and State tax income = $2,000
So, Wilma's alternative minimum taxable income = $150,000 + $2,000
= $152,000
Taxable income is the portion of your gross income that is used to determine your tax liability for a specific tax year. In general, it may be defined as adjusted gross income (AGI) less permitted standard or itemized deductions. Along with investment income and numerous unearned income streams, taxable income includes wages, salaries, bonuses, and tips.Earned income and unearned income both qualify as taxable income. Taxable unearned income includes forgiven debts, government benefits (such unemployment and disability payments), strike benefits, and lottery winnings. Taxable income also includes dividend and interest income, as well as revenues from the sale of valued assets during the year.Learn more about Taxable income, here
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costs of $5,000 were incurred to acquire goods and make them ready for sale. the goods were shipped to the buyer (fob shipping point) for a cost of $200. additional necessary costs of $400 were incurred to acquire the goods. no other incentives or discounts were available. compute the buyer's total cost of merchandise inventory.
The entire cost of the inventory of goods is $5,600.
Obtain the combined value of the starting and ending inventories as well as the cost of products sold. Make a subtraction between the starting and finishing inventories. The difference between the ending and starting inventory is the cost of goods sold.
The cost of finished items that a retailer or wholesaler has on hand to sell to its clients during a specific accounting period is known as merchandise inventory.
The sum of all expenses incurred up until the point at which the products are purchased by the Buyer will be his entire cost of merchandise inventory.
Consequently, in this scenario, the total cost of the inventory of goods will be
= $5,000 + $200 + $400
= $5,600
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