Answer:
increase by 400 billion dollars
Explanation:
marginal propensity to consume = mpc
tax multiplier = -mpc/1-mpc
from our question we were given mpc to be 0.8
-0.8/1-0.8
= -0.8/0.2
= -4
change in output = -4(-100)
= 400 billion dollars
for a $100 tax decrease, output will increase by $100 billion x 4
= $400 billion
How are productive resources
allocated among people and
businesses in the United States?
Answer:
see below
Explanation:
America is a good example of a free-market economy. In this type of market, productive resources are allocated through the interaction of a willing buyer and a willing seller. In a market economy, Mutual beneficial exchange of resources through trade is relied upon to solve economic problems. An Individual's self-interest is viewed as a benefit to society.
In a free-market economy like in America, purchasing power determines who owns resources. Resource owners are motivated by profits and other self-interest to engage in production. The forces of supply and demand control activities in a Free Market. Consumers decide what will be produced. In market economies, operation and acquisition of resources is by the freely and self-directed interaction between consumers and producers.
If the average propensity to consume is 0.75, and the marginal propensity to consume is 0.70, if income rises by $4,000, consumption will increase by _____. (Remember when we use APC versus MPC. Use only one for this question).
Answer:
$2,800
Explanation:
The computation of the increase in consumption is shown below:
= Marginal propensity to consume × rise in income
= 0.70 × $4,000
= $2,800
Hence, the consumption would be increased by $2,800
We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come
During a recessionary gap due to insufficient aggregate demand, the government should ________ spending by an amount determined by the spending multiplier in an attempt to return the economy to potential GDP/full employment. g
Answer:
Increase
Explanation:
Recessionary gap is simply defined as that which happens or occurs when the current/actual is less than the needed that is below potential. It is simply when the equilibrium level of real GDP falls short of potential GDP.
Recessionary gap (expansionary FP) can be handled or fixed by increasing government spending, decrease in tax rates and Increasein transfers
Which of the following statements would be most likely to minimize expected fixing costs? a. A machine should always be calibrated at the midpoint between the upper and lower spec limits. b. A machine should be calibrated closer to the upper spec limit than the lower spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low. c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.
Answer: c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.
Explanation:
If the cost of fixing output that is too high is greater than the cost of fixing output that is too low then it make sense to calibrate the machine closer to the lower spec limit.
This way if the machine produces less output than is required, it can be fixed at a lower cost than if the machine had been set to the upper spec and produces output that is too high.
Rust Pipe Co. was established in 1994. Four years later the company went public. At that time, Robert Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to twelve votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Stone, an investor, was considering purchasing shares in Rust Pipe Co. While he knew the existence of founders’ shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes. Of the 1,900,000 total shares currently outstanding, the original founder's family owns 52,725 shares. What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Answer:
34.25%
Explanation:
Votes per share = 12
Shares owned = 52725
Now we are to calculate the total value of the total number of of votes
Total votes = votes per share * shares owned
= 12*52725
Total = 632700
Value of votes of class B
Total shares outstanding - founders family shares
= 1900000 - 52725
= 1847275
The question requires us to calculate percentage of the founder's family votes to Class B votes
632700/1847275
= 0.3425
= 34.25%
is the price of a movie ticket likely to go up or down why?
Answer:
Down
Explanation:
Because they want more people to watch
A college student borrows $10,000 today at 10% interest compounded annually. Four years later, the student makes the first payment of $3000. Approximately how much money will the student still owe on the loan after the first payment
Answer:
$11,700
Explanation:
Calculation for how much money will the student still owe on the loan after the first payment
Using this formula
A=P(1+r/n)^nt
Where,
P =represent the principal amount $10,000
r =represent annual nominal interest rate 10/100= 0.1
n =represent the number of times the interest is compounded per year 1
t= represent number of years 4
Let plug in the formula
A=$10,000(1+0.1/1)^(1)(4)
A=$10,000(1.1)^4
A=$14,641
Since the student makes the first payment of the amount of $3,000 the amount of money that the student still owe on the loan after the first payment will be :
Loan Amount =$14,641-$3,000
Loan Amount =$11,641
Approximately $11,700
Therefore how much money will the student still owe on the loan after the first payment will be $11,700
The student still owes is $11,641.
The first step is to determine the future value of the loan:
FV = P (1 + r)^n
FV = Future value P = Present value R = interest rate N = number of years$10,000(1.1)^4 = $14,641
The amount the student still owes = future value of the loan - amount paid
$14,641 - $3000 = $11,641.
To learn more about future value, please check: https://brainly.com/question/14640433
What is a "closing balance?
a.) The amountof money you have at the end of the statement period
b.)The amount of money you have when you close your account
c.)The amount of money you owe at the end of the statement period
d.)The amount of money waiting to be transferred out of your account
Faster pls
Answer:
The answer is A
Explanation:
A closing balance is the amount of money a business has at the end of a specific time period.
A U.S. business sells milk to consumers in France. Which situation would
most likely cause demand for milk to decline in France?
A. A popular French nutrition author claims that milk is bad for
people's health.
B. French consumers expect the price for milk to increase in the
future.
C. Cheese and other products made from milk become more popular
in France
D. The French population grows steadily due to years of economic
prosperity
The situation that cause the demand for falling in france should be option A. A popular French nutrition author claims that milk is bad for people's health.
The reason why it cause demand for milk:
The various consumers believes on expert's suggestion to select between products. Marketers know this, and that is why they incorporate doctors and other professionals in advertisements. Should the popular nutrition author provides a negative opinion on milk products, the demand for milk in France will decline.
learn more about demand here: https://brainly.com/question/18282855
Answer:
A
Explanation:
Just took the quiz
All against Common Sense. Back in mid 80s, the US economy was very bad. It was much worse than it is now. At that time, to the surprise of many people, US automakers raised the prices of their cars. The common sense says that when the sales are slow, we lower prices and offer better deals to customers. Why do you think that the US car manufacturers increase the prices?
Answer:
Explanation:
This most likely happened because in the 80's the economy was so bad that even by lowering their prices the middle-class families would still not be able to afford to buy a car. The only individuals able to afford a car would be those who are wealthy. Therefore, by increasing prices and targetting wealthy individuals, the US car manufacturers could become profitable with much fewer sales and prevent the manufacturing plant from going under. Since wealthy individuals would not mind much the increased prices because they can still afford it without making much of a dent in their wealth.
A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent, what maximum initial investment would make the project acceptable? Multiple Choice $638,392.96 $595,833.43 $1,534,047.75 $655,213.49 $684,772.10
Answer:
PV= $684,772.1
Explanation:
Giving the following information:
A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent.
First, we need to calculate the future value of the cash flows:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {103,900*[(1.084^10) - 1]} / 0.084
FV= $1,534,047.75
Now, we can determine the present value:
PV= FV/(1+i)^n
PV= 1,534,047.75 / (1.084^10)
PV= $684,772.1
0.5 points eBookPrintReferences Check my work Check My Work button is now enabledItem 3Item 3 0.5 points Agee Storage issued 37 million shares of its $1 par common stock at $12 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $10 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee’s total paid-in capital decline if it now reacquires 1 million shares at $16 per share? (
Answer:
Decline in Agee's total paid up capital is $14,000,000
Explanation:
Computation of decline in Paid-Up capital
Particulars Amount
Cash paid for first repurchase $10,000,000
(1 million shares*$10)
Value of first purchase $12,000,000
(1 million * $12
Benefit on first repurchase $2,000,000
Cash paid for second repurchase = $16,000,000
(1 million shares * $16)
Value of second repurchase $12,000,000
(1 million * $12)
Reduction in Total paid-in-capital $14,000,000 ($2 million + $12 million)
A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds $ 25 per pound 100 pounds to 3,999 pounds $ 24 per pound 4,000 pounds or more $ 23 per pound The cost to place an order is $40. Annual demand is 2,700 units. Holding (or carrying) cost is 25 percent of the material price. What is the economic order quantity to buy each time, and its total cost
Answer:
EOQ = 201 units
total cost = $66,007.35
Explanation:
we can calculate the EOQ using 2 different prices (it makes no sense to use $23 since the minimum order size is larger than annual demand):
EOQ = √[(2 x S x D) / H]
S = order costD = annual demandH = holding cost$25 per unit
S = $45
D = 2,700
H = $25 x 25% = $6.25
EOQ = √[(2 x 45 x 2,700) / 6.25] = 197.18
$24 per unit
S = $45
D = 2,700
H = $24 x 25% = $6
EOQ = √[(2 x 45 x 2,700) / 6] = 201.25 ≈ 201 units
since both EOQs are higher than 100 units, then we must use $24 per unit
you have to make 2,700 / 201 = 13.43
total cost = (13.43 x $45) + (2,700 x $24) + (201 x $6 x 0.5) = $604.35 + $64,800 + $603 = $66,007.35
Carolyn is looking over opinions based primarily on research studies. She has found that there are 31 of them in total. What organization is Carolyn researching?
Answer:
d. APB
Explanation:
Carolyn is looking over published accounting opinions based primarily on research studies. What organization is Carolyn researching?
These are the options for the question
a. CAP
b. AICPA
c. SEC
d. APB
We are informed Carolyn who is looking over published accounting opinions based primarily on research studies. The organization Carolyn researching is Accounting Principle Board.
APB( Accounting Principle Board) belongs to a body of American institute of Certified public accountant in US.
it was been run and organised by American Institute of Public Accountants. APB can be regarded as organization which is a forerunner of
Financial Accounting Standards Board. This APB usually offer discounts on professional training with them as well insurance on journal subscription to their member. They are good in offering research on Accounting and finance.
According to the information above, which of the following is an appropriate analysis of the sales from the paper supplier? Select the correct answer below: From the data, the paper supplier had continued increasing sales over the 11 days. From the data, the paper supplier had continued decreasing sales over the 11 days. From the data, the paper supplier had decreasing sales from day 0 to day 5. After day 5, the sales increased. From the data, the paper supplier had increasing sales from day 0 to day 5. After day 5, the sales decreased.
Answer:
From the data, the paper supplier had decreasing sales over the 11 days.
Explanation:
The sales of the paper supplier have been declined over the 11 days. This might be because the demand for the paper is reduce due to lock down offices are closed and mostly work is done online on the soft copies. The paper supply has been increased and demand is decreased resulting in the price fall.
What are the 3 activities that took place during the forming stages
Explanation:
The three activities that took place in the forming stages are:
Team members introduce to each other, they share their backgrounds and information about their interests and experience and develop impressions towards each other. Team members come to know about each other strengths, interests, and challenges. Team members learn about the project they are doing work and they discuss the project's goals and they conceive about what contribution and role they are going to perform on the particular project.Brad will graduate next year. When he begins working, he plans to deposit $6000 at the end of each year into a retirement account that pays 6% interest. How much will be in his account after 40 deposits
Answer:
$92,8571.7937
Explanation:
The computation of the amount after 40 deposits is shown below:
= (((1 + interest rate)^number of years - 1) ÷ interest rate)× principal
= (((1 + 0.06)^40-1) ÷ 0.06) × $6,000
= $92,8571.7937
We simply applied the above formula and the same is to be considered
We considered all the things given in the question
Southern Imports is an all-equity firm with a beta of 1.32. The firm is considering a new project that entails less risk than its current operations and thus management feels that the firm's beta should be lowered by .18 when assigning a discount rate to this project. The market rate of return is 9.4 percent and the risk-free rate is 2.8 percent. What discount rate should be assigned to this project
Answer:
The answer is "10.32%".
Explanation:
The actual beta firm =1.32
if new beta reduced by 1.8
beta firm= 1.14(1.32-1.8)
market return= 9.4%
risk-free return=2.8%
formula:
[tex]\to \text{Discount rate= risk} +beta \times (return-risk)}[/tex]
[tex]=2.8+1.14(9.4-2.8)\\\\=10.32%[/tex]
At what percentage of credit card usage, does it start affecting your score in a negative way?
Answer:
3%
Explanation:
ratio of 80 or 90 percent or more highly negative impact on your credit score.
A lawn company intends to use the sales of lawn fertilizer to predict the sales of lawn mower. The store manager estimates a probable six-week lag between fertilizer sales and mower sales. The pertinent data are
Answer:
Period ; Fertilizer ; Sales
1 ; 1.6 ; 10
2; 1.3 ; 8
3; 1.8 ; 11
4; 2.0 ; 12
5; 2.2 ; 12
6; 1.6 ; 9
7; 1.5 ; 8
8; 1.3 ; 7
9; 1.7 ; 10
10; 1.2 ; 6
Explanation:
Correlation is 0.960
R-Squared is 0.921
This is positive correlation which means both variables will move in same direction.
Slope is 6.153
Intercept is -0.649
Regression line will be formed with x intercept as fertilizers and y intercept as Lawn Mowers sold.
Retepson, Inc. has been in business for over 50 years. Retepson is best known for its Guide to Colleges line of books designed for high school students seeking admission to undergraduate programs. Basic information about a program is included in the books at no charge to the colleges, but colleges may purchase additional advertising space in the books for a fee. Traditionally, Retepson has made money by selling advertising in its books and by charging students for the books themselves. Recently, however, profits are down, and the company is considering whether it needs to change its corporate culture. Which of the following, if true, supports the conclusion that Retepson's culture should emphasize innovation?
a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.
b) At the time that Retepson was founded, there was no easy way for students to find out basic information about a wide range of undergraduate programs.
c) Most large colleges have found that the wide circulation of the Guide to Colleges line of books makes it worthwhile to purchase additional advertising space.
d) Retepson's sales force has been able to prevent imitators from duplicating its success.
e) Students seeking admission to selective colleges often adopt innovative approaches to their application essays in order to stand out from the group of applicants.
Answer:
a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.
Explanation:
when we say innovation what we mean is a new idea, a new method, or a new way of doing things.
option A is the answer because using the internet to search for information is a form of innovation that has would bring about immense amount of changes from the former way of doing things. the internet itself is an innovative medium and it serves different purposes.
if anyone with internet can easily access information, then such an innovative ideas should be emphasized
Situation 2
A customer walks into your department and asks if anyone can help her. She complains that she's
been waiting for the salesperson in the shoe department for the last 10 minutes. She says, "Just
when I think he's finally going to help me, he takes another phone call. I'm so upset. I just want to
tell his manager how rude he's been."
Policy: Employees should try to handle all customer complaints. If the customer demands to see a
manager, call the departmental manager immediately.
19
sty
Answer:
The lady would need to remain patience and make note of the fact that there may be a crowd and not enough employees so it may take a while. Yes the lady has a right to assistance but she should only be given it if she is being respectful of the people around her and nice to the employees.
Not sure what you wanted me to answer but I hope this helps.
Explanation:
Income generated by sales of foreign-produced goods in U.S. markets flows to foreign producers of these goods, and thus this income is subtracted from U.S. GDP.
a. True
b. False
Answer: True
Explanation:
Foreign produced goods being sold in the United States are considered to be Imports. Imports are a leakage to the GDP of a nation as they represent income which flows out of the economy to other countries.
For this reason this income is subtracted from US GDP.
Indeed the Expenditure method accounts for this by deducting it from US Exports.
Crane Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $140,000, $240,000, and $54,000, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,000, machine hours 24,000, and number of inspections 1,200. Compute the overhead rate for each activity. Machine setups $ per setup Machining $ per machine hour Inspections $ per inspection
Answer:
1. $70 per set up
2. $10 per machine hour
3. $45 per inspection
Explanation:
With regards to the above,
Compute the overhead rate for
1. Machine set ups
= Estimated annual overhead cost / Estimated annual Number of setups
Estimated annual overhead costs = $140,000
Estimated annual Number of setups = 2,000
= $140,000 / 2,000
= $70 per set up
2. Machining
= Estimated annual overhead costs / Estimated annual Machine hours
Estimated annual overhead costs = $240,000
Estimated annual Machine hours = 24,000
= $240,000 / 24,000
= $10 per machine hours
3. Inspection
= Estimated annual overhead costs / Estimated annual number of inspections
Estimated annual overhead costs = $54,000
Estimated annual number of inspections = 1,200
= $54,000 / 1,200
= $45 per inspection
Required information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 320,000 Polishing $ 135,000 Product modification 600,000 Providing power $ 255,000 System calibration 500,000 Additional information on the drivers for its production activities follows. Grinding 13,000 machine hours Polishing 13,000 machine hours Product modification 1,500 engineering hours Providing power 17,000 direct labor hours System calibration 400 batches Job 3175 Job 4286 Number of units 200 units 2,500 units Machine hours 550 MH 5,500 MH Engineering hours 26 eng. hours 32 eng. hours Batches 30 batches 90 batches Direct labor hours 500 DLH 4,375 DLH Problem 17-3A Part 5 Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)
Answer:
Craft Pro Machining
The overhead cost for each unit of the jobs:
Job 3175 Job 4286
Number of units 200 units 2,500 units
Direct labor hours 500 DLH 4,375 DLH
Plantwide overhead rate = $371.28205
Overhead allocation $185,641.03 $1,624,358.97
Unit overhead cost $928.21 $649.74
Explanation:
a) Data and Calculations:
Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 320,000
Polishing $ 135,000
Product modification 600,000
Providing power $ 255,000
System calibration 500,000
Total overhead cost $1,810,000
Additional information on the drivers for its production activities follows.
Grinding 13,000 machine hours
Polishing 13,000 machine hours
Product modification 1,500 engineering hours
Providing power 17,000 direct labor hours
System calibration 400 batches
Job 3175 Job 4286
Number of units 200 units 2,500 units
Machine hours 550 MH 5,500 MH
Engineering hours 26 eng. hours 32 eng. hours
Batches 30 batches 90 batches
Direct labor hours 500 DLH 4,375 DLH 4,875 DLH
Plantwide overhead rate based on direct labor hours:
= Total overhead costs/Total direct labor hours
= $1,810,000/4,875
= $371.28205
a. Why do some price controls help create black markets?
b. What is a black market you have personally seen?
Answer:
Price ceiling creates black markets
Price ceiling is when the government or an agency of the government sets the maximum price of a good or service. Price ceiling is binding if it is set below equilibrium price.
When a binding price floor is established, producers would earn less profits and as a result they would stop selling their products in the free markets. This would lead to scarcity and a result a black market can emerge. Goods would be sold at a higher price in the black markets than it would in the free markets.
So, black markets can arise as a result of price ceiling and the need of producers to earn higher profits
b. During the war, when there was a rationing of meat. Farmers declared less animal births to authorities and sold the undeclared livestock in the black market.
Also, in less developed countries e.g. Nigeria, when there is scarcity of fuel. Black markets arise where fuel are sold for higher prices
Explanation:
At a sales volume of 44,000 units, Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $585,200. To the nearest whole cent, what should be the total sales commission per unit at a sales volume of 46,300 units
Answer: $13.30 per unit
Explanation:
Thoma Corporation Sales Commission per unit;
= Total Sales commission/ Sales volume
= 585,200/44,000
= $13.30
For a sales volume of 46,300 units, the commission per unit will be the same $13.30 per unit as this cost is variable with respect to sales volume.
ere are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales $
888.00
Cost of goods sold
748.00
Depreciation
38.00
Earnings before interest and taxes (EBIT) $
102.00
Interest expense
19.00
Income before tax $
83.00
Taxes
17.43
Net income $
65.57
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $
376
$
326
Long-term assets
272
229
Total assets $
648
$
555
Liabilities and shareholders’ equity
Current liabilities $
201
$
164
Long-term debt
115
128
Shareholders’ equity
332
263
Total liabilities and shareholders’ equity $
648
$
555
The company’s cost of capital is 8.5%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)
d. Is the company creating value for its shareholders?
Answer:
its wap aka W A P
Explanation:
Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 75 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve on average about 100 customers per hour. Use Exhibit 5.6. During these nights, are they in the zone of service, the critical zone, or the zone of nonservice?
Answer:
the critical zone
Explanation:
So, we have the following information or data from the question/problem, they are:
=> In order to improve on the restaurant service and give more quality, customers data were collected in from Friday and Saturday nights which happens to be the local restaurant's busiest times of the week.
=> From the data collected it was shown that 75 customers arrive per hour for service.
=> After getting the data above the owners of the local restaurant estimated that they can serve on average about 100 customers per hour.
In order to improve on the restaurant service and give more quality, the utilization rate must be calculated. Therefore the utilization rate is arrival rate divided by service rate that is to say;
The utilization rate = arrival rate/ service rate.
The utilization rate = 75/100 = 0.75 = 75%.
The next step is to draw the diagram showing the relationship between rate of service utilization and service rate.
So, from the graph we have that with the 75%, the zone that it falls to is the CRITICAL ZONE.
Waterway Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows.
WATERWAY BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2020
Sales $79,000,000
Cost of goods sold
Variable $32,390,000
Fixed 8,750,000 41,140,000
Gross margin $37,860,000
Selling and marketing expenses
Commissions $16,590,000
Fixed costs 10,607,200 27,197,200
Operating income $10,662,800
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $9,480,000.
Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g 2,510.)
Break-even point: $ _ _ _ _ _ _
Answer:
$50,940,000
Explanation:
Calculate the Bonita Beauty Corporation's break even point in sales dollars for the year 2017.
Please see as attached, detailed solution to the above question.