Goshen company's contribution format income statement for the most recent month is given below: sales (42,000 units) $ 1,218,000 variable expenses 852,600 contribution margin 365,400 fixed expenses 292,320 net operating income $ 73,080 the industry in which goshen company operates is quite sensitive to cyclical movements in the economy. thus, profits vary considerably from year to year according to general economic conditions. the company has a large amount of unused capacity and is studying ways of improving profits. required: new equipment has come on the market that would allow goshen company to automate a portion of its operations. variable expenses would be reduced by $8.70 per unit. however, fixed expenses would increase to a total of $657,720 each month. prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. (input all amounts as positive values except losses which should be indicated by minus sign.)

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

Agovernment receives a gift of cash and investments with a fair value of $200,000. the donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. the $200,000 gift should be accounted for in which of the following funds? a) general fund b) private-purpose trust fund c) agency fund d) permanent fund

The third program provides families with $50 in food stamps each week, redeemable for both perishable and nonperishable food. the fourth policy instead provides a family with a box of nonperishable foods each week, worth $50. use two graphs to illustrate that a family may be indifferent between the two programs, but will never prefer the $50 box of nonperishable foods over the $50 in food stamps. state your answer and use a consumer choice model for perishable food and nonperishable food to graphically justify your choice.