Acme manufacturing is producing $4,060,000 worth of goods this year and expects to sell its entire production. it also is planning to purchase $1,500,000 in new equipment during the year. at the beginning of the year, the company has $500,000 in inventory in its warehouse.

1. find actual investment and planned investment if:

(a) acme actually sells $3,850,000 worth of goods.

(b) acme actually sells $4,000,000 worth of goods.

(c) acme actually sells $4,200,000 worth of goods

actual investment = $1560000

actual investment = $1710000

actual investment = $1360000

and

planned investment = $1500000

Explanation:

given data

producing goods = $4,060,000

new equipment = $1,500,000

inventory in warehouse = $500,000

to find out

actual investment and planned investment

solution

first if sell at = $3850000

unplanned investment is = producing goods - sell

unplanned investment = $4,060,000 - $3850000

unplanned investment = $60000

so

actual investment = planned investment + unplanned investment

actual investment = $1,500,000 + $60,000

actual investment = $1560000

and

next if actually sells is = $4,000,000

unplanned investment = $4,060,000 - $4,000,000

unplanned investment = $210,000

so

actual investment = planned investment + unplanned investment

actual investment = $1,500,000 + $210,000

actual investment = $1710000

and

next if actually sells is = $4,200,000

unplanned investment = $4,060,000 - $4,200,000

unplanned investment = $140,000

so

actual investment = planned investment + unplanned investment

actual investment = $1,500,000 + $140,000

actual investment = $1360000

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.