Use the Information Below to Answer the Following Question(s)

question 4

Multiple Choice

Use the information below to answer the following question(s) .Northwoods manufactures rustic furniture.The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs.The company has surplus capacity available.It is Northwoods' policy to add a 50% markup to full costs.
-Northwoods is invited to bid on a one-time-only special order to supply 100 rustic tables.What is the lowest price Northwoods should bid on this special order?

• A)$6,300
• B)$7,200
• C)$10,800
• D)$13,500
• E)$9,000

Distinguish between nominal GDP, real GDP, and GDP deflator.

Understand the impact of population growth, inflation, and deflation on GDP and real per capita GDP.

Analyze the factors that may cause GDP to overstate or understate economic well-being.

Differentiate between final goods and intermediate goods and their roles in GDP calculation.

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Definitions:

Interest Computation

The process of calculating the amount of interest earned or paid over a certain period, considering the principal amount, interest rate, and time.

Maturity Value

The amount payable to the holder of a financial instrument at the date when the instrument becomes due and payable, including principal and any applicable interest.

365-Day Year

A calendar model assuming exactly 365 days in a year, commonly used for calculating interest in finance.

Discount Method

Method of computing the net price using the trade discount rate to calculate the amount of trade discount, and, subsequently, the net price.