Consider the shovel market in a small town:
Demand function: Qd= 900 - 30P
Supply function: Qs= -200 + 20P
Suppose the government decides to impose a per-unit tax of $15 on shovels in this town, and that tax is levied on the consumers.
A) Calculate the equilibrium price and quantity after the tax is imposed.
B) Use a demand and supply diagram to illustrate the original equilibrium and the new equilibrium after the tax is imposed on the consumers.
Answers
After the tax is imposed on the consumers in the shovel market, the new equilibrium price is $28, and the new equilibrium quantity is 60 units. The supply curve shifts upward due to the tax, resulting in a higher price and lower quantity compared to the original equilibrium.
To calculate the equilibrium price and quantity after the tax is imposed, we need to find the new equilibrium point where the quantity demanded (Qd) equals the quantity supplied (Qs) with the tax included.
Demand function: Qd = 900 - 30P
Supply function: Qs = -200 + 20P
Tax per unit: $15
After the tax is imposed, the price received by suppliers (P) will be reduced by the amount of the tax. Therefore, the new supply function becomes:
Qs = -200 + 20(P - 15)
Qs = -200 + 20P - 300
Qs = 20P - 500
Now, equating the new demand and supply functions:
900 - 30P = 20P - 500
Combine like terms:
50P = 1400
Solve for P:
P = 28
Substitute P back into either the demand or supply function to find the quantity (Q):
Q = 900 - 30(28)
Q = 900 - 840
Q = 60
Therefore, the new equilibrium price is $28 and the new equilibrium quantity is 60 units after the tax is imposed.
Before the tax is imposed, the original equilibrium price and quantity are represented by the point where the demand curve (Qd = 900 - 30P) intersects with the supply curve (Qs = -200 + 20P).
After the tax is imposed on the consumers, the supply curve shifts upward by the amount of the tax ($15). This is because the suppliers receive a reduced price due to the tax. The new supply curve is given by Qs = 20P - 500.
The new equilibrium is determined by the point where the new supply curve (Qs = 20P - 500) intersects with the demand curve (Qd = 900 - 30P). This new equilibrium point reflects the higher price (P) and lower quantity (Q) due to the tax.
Visually, the original equilibrium point will be at a higher price and higher quantity compared to the new equilibrium point after the tax is imposed. The demand curve remains the same, while the supply curve shifts upward.
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Related Questions
Welfare includes all of the following EXCEPT
(a) Social Security
(b) Medicare
(c) Occupational Safety and Health Administration
(d) Medicaid
Answers
Answer:
(C) Occupational Safety and Health Administration
Can you guys help me with this ethical case? I know how to do these generally but this one specifically confuses me. I need to know the following: The ethical issue, who the primary and secondary stakeholders are, the different courses of action and their impacts as well as what the best solution would be. Thanks :)
Answers
A combination of personal, moral, legal, and social norms of what is proper determine the ethics, which are a set of principles for thinking and acting.
Ethical Issues: What Do They Mean?When a particular action, course of action, or judgment runs afoul of a society's moral standards, an ethical problem arises. Since any of their actions could be questioned in terms of their ethicality, both individuals and corporations can be implicated in these disputes.
The three different categories of ethical problems are what?Utilitarian, Deontological, and Virtue concerns are the three primary subcategories of ethical problems. While deontological ethics emphasize the act itself, utilitarian ethics place more emphasis on the results of a choice. The character of the person acting is a key component of virtue ethics.
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You are paid $11.75/hr. You work 40 hr/wk. Your deductions are FICA (7.65%), Federal tax withholding (10.75%), and state tax withholding (7.5%). What am I making?
Answers
Answer:i have no answer but you are making more income
Explanation:
cause
Answer:
These are the answers
Explanation:
Hockley Brewing has produced a new craft lager beer that will be branded Hockley Classic Lager. The market for craft beer is about $20 million retail per year and the average retail price across all craft beer producers is $2. 50. The following information applies to Hockley’s new craft lager beer.
Factory production costs $1. 05 / can (Variable Cost)
Beer ingredients $0. 35 / can (Variable Cost)
Packaging $0. 20 / can (Variable Cost)
Advertising and promotion $60,000 (Fixed Cost)
Channel listing fees $30,000 (Fixed Cost)
Hockley’s wholesale price to retailers $2. 40 / can (Variable Cost)
(Hockley’s) manufacturer’s suggested retail price $2. 55 / can (Variable Cost)
a. What is Hockley’s unit contribution (measured in $ per can) and contribution margin (measured in percentage)?
b. What is the break-even point in cans? in dollars?
c. What is the necessary sales volume in cans to achieve a $150,000 (target) profit?
d. What will Hockley’s net profit be if 100,000 cans of the new lager are sold?
e. What will Hockley’s market share of craft beer be if they sell 100,000 cans?
f. Their largest competitor is Mill Street Brewery whose Original Organic Lager has 2. 5% market share of the craft beer market. Given Hockley’s market share calculated in part (e), what will Hockley’s relative market share (RMS) be for their Classic Lager?
g. The craft beer market is growing at 10% annually, higher than any other type of beer. With the RMS for Hockley Classic Lager calculated in part
(f), at the end of their first year, where in Hockley’s portfolio will Classic Lager be positioned and what recommendation would follow?
h. Calculate the price elasticity of demand if they raise the MSRP from $2. 55 to $2. 75 and demand falls from 100,000 cans to 95,000 cans. Is demand for this product price elastic or inelastic?
Answers
Hockley's unit contribution is $0.50 per can with a contribution margin of 19.6%. The break-even point is 180,000 cans or $432,000, and a sales volume of 480,000 cans is needed to achieve a target profit of $150,000.
a. Hockley's unit contribution is $0.50 per can ($2.55 - $2.05), and the contribution margin is 19.6% (($0.50 / $2.55) x 100).
b. The break-even point in cans can be calculated by dividing the total fixed costs ($60,000 + $30,000) by the contribution per can ($0.50). The break-even point is 180,000 cans. In dollars, the break-even point is $432,000 (180,000 cans x $2.40).
c. To achieve a target profit of $150,000, we need to calculate the necessary sales volume in cans. The formula is (Total Fixed Costs + Target Profit) / Contribution per can. Using the given numbers, the necessary sales volume is 480,000 cans.
d. If 100,000 cans of the new lager are sold, the net profit can be calculated as (Unit contribution x Sales volume) - Total Fixed Costs. With the given numbers, the net profit would be $10,000.
e. If Hockley sells 100,000 cans, their market share of craft beer can be calculated as (Sales volume / Total market size) x 100%. With a $20 million market size, their market share would be 0.5%.
f. Hockley's relative market share (RMS) for their Classic Lager can be calculated by dividing their market share by Mill Street Brewery's market share and multiplying by 100. With Hockley's market share of 0.5% and Mill Street Brewery's market share of 2.5%, Hockley's RMS would be 20%.
g. With an RMS of 20% for their Classic Lager, Hockley would be positioned as a significant player in the craft beer market. The recommendation would be to continue investing in and promoting the Classic Lager to further increase its market share.
h. The price elasticity of demand can be calculated using the formula: Percentage change in quantity demanded / Percentage change in price. In this case, the percentage change in quantity demanded is ((100,000 - 95,000) / 100,000) x 100% = 5%, and the percentage change in price is (($2.75 - $2.55) / $2.55) x 100% = 7.8%. Therefore, the price elasticity of demand is 0.64 (5% / 7.8%). With a price elasticity of less than 1, demand for this product is price inelastic, meaning that a price increase led to a proportionally smaller decrease in quantity demanded.
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Current liabilities meet all of the following criteria: (check all that apply)O Are due within one year O Represent probable future sacrifices of economic benefits O Arise from past transactions or events O Are due greater than one year from the balance sheet date O Are amortized equally each period once put on the books
Answers
Most of the time, long-term liabilities are due more than a year from now, while current liabilities are due immediately.
Which of the following is a current liability answer?Current liabilities include things like accumulated expenses, short-term debt, due dividends, and accounts payable. Current assets are assets that are depleted within a year, and they are often used to settle current liabilities. Accounts payable, short-term loans, dividends, and notes payable are a few examples of current obligations. Income taxes are also included in this category.
Accounts payable, bank overdrafts, sales tax obligations, accruing expenses, etc. are a few examples of well-known current liabilities. Current liabilities are obligations that must be satisfied within a year, during the entity's operating cycle, or both if the cycle is longer than a year, in cash, in products and services, or both. Debentures with a repurchase option are not current liabilities. Adding the value of trade payables results in the calculation of current liabilities, which are the company's debts that are due within a year.
Therefore the correct answer is Are due greater than one year from the balance sheet date .
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Why might a person assume the Mr. White could be doing well financially
Answers
\(\huge\color{purple}{\mathbb{ANSWER:}}\)
Mr. White was the third and final owner of the talisman in W. W. Jacobs' short story "The Monkey's Paw." He plucked it from the fireplace when the previous owner, Sergeant Major Morris, tossed it there to burn and end the chain of misfortune that came with it. He is motivated mostly by curiosity, since he seems happy with his life and is financially secure.
Mr. White took the paw from his pocket and eyed it dubiously. "I don't know what to wish for, and that's a fact," he said slowly. "It seems to me I've got all I want."
Hope it helps!!working in office or in a bank is an example of❔
Answers
Answer:
White collar jobs
Explanation:
This work is situated in an office
How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
To cover the initial margin requirement of 60%, you deposited funds after short-selling 200 shares of common stock at $55 per share.
a. What is your rate of return if you cover at $60, assuming no dividends and no addition or removal of funds from the account? (Negative value should be indicated by a minus sign. Round your answer to 1 decimal place.)
Rate of return %
b. At what price would you receive a margin call if the minimum margin requirement is 30%? (Round your answer to 2 decimal places. Omit $ sign in your response.)
Price $
Answers
You would receive a margin call if the stock price rose to approximately $66.20.
How to determine the margin callWhen you cover at $60, you are buying back the shares at a higher price, which means you are losing money.
The total cost to buy back the shares
200 * $60 = $12,000.
Your net loss is the buy-back cost minus the initial selling price, which is $12,000 - $11,000 = $1,000.
return on investment (ROI)
= -($1,000 / $6,600) * 100 = -15.2%.
b.$6,600 - (P * 200 - $11,000) and this must be at least 30% of the value of the shorted stock, which is 0.30 * (P * 200).
Setting these two expressions equal to each other gives us:
$6,600 - (P * 200 - $11,000) = 0.30 * (P * 200)
Solving this equation for P gives us:
P = $66.20
So, you would receive a margin call if the stock price rose to approximately $66.20.
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Across the five years, what is the average revenue generated by sales to public institutions?
A) $498,260,000
B) $99,652,000
C) $500,800,000
D) $307,580,000
E) $93,568,000
What is the difference in revenue generated between sales to businesses and sales to private individuals in Year 5?
A) $358,400,000
B) $207,872,000
C) $150,528,000
D $326,400,000
E) $166,400,000
The lead consultant on the project with Talabot & Hopkins is interested in Talabot & Hopkin's profit development over Year 1 to Year 5.
A) Talabot & Hopkins' proportional profit decreased over the five years.
B) Talabot & Hopkins' profit increased year on year over the five years.
C) Talabot & Hopkins' profit increased over the five years, mainly driven by their sales to private individuals,
D) Talabot & Hopkins'expenses decreased over the five years, which significantly contributed to the profit increase.
E) Talabot & Hopkin's profit increased from $131.1 M in Year 1 to $317.2m in Year 5.
Answers
Across the five years the average revenue generated by sales to public institutions is D) $307,580,000.
What does Average revenue mean?
Average revenue is a measure of a company's total income divided by the number of goods or services sold. It is a measure of how much money a company makes on average from each sale. Average revenue per unit or average revenue per sale are other terms for it.
What is the difference in revenue generated between sales to businesses and sales to private individuals in Year 5?
The difference in revenue generated between sales to businesses and sales to private individuals in Year 5 is C) $150,528,000
The lead consultant on the project with E) Talabot & Hopkin's profit increased from $131.1 M in Year 1 to $317.2m in Year 5.
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In the past, jaleel's vacation time has been spent at home catching a few local attractions when she could afford them. this year, she received a big bonus at work and has decided to finally take the trip to europe that she has always dreamed about. jaleel's purchasing behavior has changed due to_________.
a. the income effect.
b. the substitution effect.
c. cross-price elasticity.
d. the complementary products effect.
e. the substitute products effect.
Answers
Answer:
a. the income effect.
Explanation:
The income effect is the change in demand with respect to the good or service that due to change in the purchasing power of the consumer results in change in real income
Since in the situation it is mentioned that she received a big bonus this year and she decided for a trip to europe so here the purchasing power would be changed due to the income effect
hence, the option a is correct
Which of the following factors are important considerations when evaluating a business idea? (Check all of the boxes that apply)
Your personality
Location of business
Your finances
Your competition
Number of employees
The number of hours you will work weekly
Answers
Answer:
location of business
your finances
long-term treasury bonds currently are selling at yields to maturity of nearly 6%. you expect interest rates to fall. the rest of the market thinks that they will remain unchanged over the coming year. if you are correct, choose the bond that will provide the higher holding-period return over the next year in each of the following: a. i. a baa-rated bond with coupon rate 6% and time to maturity 20 years. ii. an aaa-rated bond with coupon rate of 6% and time to maturity 20 year
Answers
B. An Aaa-rated bond with a coupon rate of 6% and a time to maturity of 20 years. This is the bond that will provide the higher holding-period return over the next year.
Treasury bonds with maturities of more than ten years are referred to as long-term bonds. When you buy a long-term Treasury bond, you essentially agree to lend money to the federal government for the duration of the bond's maturity period.
Long-term Treasury bonds, often known as T-bonds, are regarded as among the safest investments because they are debt securities backed by the U.S. federal government. This is so that the federal government, which has the power to tax, can obtain money if necessary to pay off its debts.
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How can decision-making skills help me achieve my goals?
Answers
Answer:
Put forward objectives that you need to achieve. To be roused to really accomplish your objectives, they should be founded on the data that you considered during the dynamic interaction. Stage 2: Consider your objectives mindfully to guarantee that they don't negate one another.
Answer:
It helps you be more experienced when it comes to making tough decisions
Explanation:
The reason decision making skills can help you achieve your goals is by making you focus on what you need to do to be able to complete whatever obstacle you need to cross. Imagine you didn't have any decision making skills at all. One day you will come across some sort of situation where you would need to make a decision, for example lets say that you are a manager at an office building and there is an office worker who just doesn't do their job. There is another person who wants to work there and they are more hardworking than the lazy worker but there is no positions available. Your decision making skills would help you decide whether to fire the lazy worker so that the hard worker gets the job, or if you would let the lazy worker keep working there and the lazy worker does nothing productive for the company.
Hope this helps and wasn't too confusing.
What is one way to prepare for a job shadowing experience?
Find directions to the shadowing location five minutes before you leave.
Look over recent news about the company.
Make sure to wear a lot of cologne or perfume.
Wear clothing that is casual to ensure you are comfortable.
Answers
Answer: Look over recent news about the company.
Explanation: I took the test and got it right. :D
Answer:
B
Explanation:
Marketing segmentation is one of the easiest aspects of marketing.
true or false
Answers
Answer:
false
Explanation:
I THINK IT'S FALSE OK?! I'm a straight B student, if that's enough proof LOL
5 advantages of under development
Answers
Nobody wants to live in a developing country. It is therefore subpar.
Being the country with the most recently constructed industries has a benefit, too, and that benefit frequently comes from being an underdeveloped country. For instance, the majority of the steel plants in the United States were constructed before the start of World War II, while South Korea's steel sector was developed decades later. The Korean steel plants were more cost-effective and able to undercut the price of American steel because they made use of new technologies. U.S. steel plants eventually had to shut down due to their lack of competitiveness.
Similar to this, China had a cost advantage due to its cheap wages because it was undeveloped when it opened up to the global market under Deng. In recent years, as its economy has grown, its wages have increased.
ABC Credit Card company noticed that the average balance of all ABC credit card users who have missed the minimum payment last month is $3742.00 with a standard deviation of $1355.00. * = a. When the monthly statement is prepared, they charge a monthly interest of 1.8% for the current balance. Suppose that the statement balance current balance * 1.018. The average statement balance of all ABC credit card users who missed the minimum payment last month is with a standard deviation of b. Since they missed the minimum payment, all of them are subjected to pay a late fee of $35. Suppose that the new statement balance = (current balance * 1.018) +35. The average statement balance of all ABC credit card users who missed the minimum payment last month is with a standard deviation of 1.9. Determine the type of sampling used in the following study: A marketing manager wants to analyze how store employees perceive a new product they are selling. She randomly selects five stores and has all employees in those stores fill out surveys.
Answers
This approach provides insights into the perception of the new product by employees across multiple stores, while still being more efficient compared to surveying all employees from all stores.
What type of sampling was used to analyze how store employees perceive a new product?Cluster sampling is a sampling technique where the population is divided into groups or clusters, and a random sample of these clusters is selected for analysis.
In this case, the marketing manager selected five stores as clusters and then collected data from all employees within those selected stores.
The key characteristic of cluster sampling is that each cluster is treated as a representative sample of the population, and all individuals within the selected clusters are included in the study.
This method is often more practical and cost-effective when it is difficult or time-consuming to access the entire population directly.
In this study, the marketing manager used cluster sampling by randomly selecting five stores, treating them as clusters, and collecting survey responses from all employees within those selected stores.
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You invest $500 in a fund that has shown to have a mean annual increase of $120 per year. If you leave your initial
investment in the account, and invest no additional funds, how much will your account be worth at the end of 25 years?
a) $1,200
b) $2,500
c) $3,500
d) $3,800
Answers
The investment of $500 in a fund, the account at the end of 25 years would be $3,500. The appropriate response is option C.
What is investment?A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person makes an investment, they do not intend to utilize the product immediately; instead, they intend to use it to build wealth in the future.
Stocks, bonds, and cash equivalents are the three main categories into which investments are often divided. Within each category, there are several distinct kinds of investments.
The investment of $500 in a fund, the account at the end of 25 years-
120x25=3000+500=3,500
Hence, option C is an appropriate response.
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if net income is $2,700 and dividends are $8,500, how much is common stock?
Answers
Given that the net income is $2,700 and dividends are $8,500, the amount of common stock can be calculated as follows:Common stock is the total amount of stock issued by a corporation.
The common stock is issued as part of the shareholders' equity. Therefore, the formula for the shareholders' equity can be given as follows:Shareholders' equity = common stock + retained earnings + other comprehensive incomeFrom the formula for shareholders' equity, we can find the common stock.Common stock = shareholders' equity - retained earnings - other comprehensive incomeAs the other comprehensive income is not given, we can ignore it.Shareholders' equity = common stock + retained earningsShareholders' equity = $8,500 (dividends) - $2,700 (net income)Shareholders' equity = $5,800Therefore, the amount of common stock is $5,800.
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Which of the following is true of total variable overhead variance? a.It can be divided into spending and rate variances. b.It shows only the effect of differences in the prices of overhead variances. c.It always depends on the actual hours used. d.It is the difference between actual and applied variable overheads.
Answers
The answer choice which shows the true statement about total variable overhead variance is b. It shows only the effect of differences in the prices of overhead variances.
What is Variance?This refers to the average squared deviations from the mean of a distribution.
With this in mind, we can state that the total variable overhead variance has to do with the difference in the price of prices of the overhead variances which are the surplus.
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write the Express of following numbers. Three times x is 11 and 36
Answers
Answer:
3x + 11 = 32
Explanation:
In this case, expressing means creating an equation that describes
the sum of three times x and 11 is 32.
'Sum' refers to the total while 'is' refers to equals to.
therefore, the total of 3x and 11 = 32
i.e., 3x + 11 = 32
marcus finds that a check written by a customer and deposited has not yet been posted
Answers
A company introduces a new technology product to the market. it sets the product’s price at the highest price it thinks customers will pay. Which type of pricing strategy is the company using?
Answers
A company introduces a new technology product to the market. it sets the product’s price at the highest price it thinks customers will pay. the type of pricing strategy is the company using is
skim pricingWhat is pricing strategy?
Price is the value assigned to a good or service and is determined by a complicated series of calculations, research, and risk-taking skills.
A pricing strategy considers factors such as market conditions, consumer willingness to pay, competition activity, trade margins, and input costs, among others. Target audiences include the specified clients and rival businesses.
Depending on the industry and business model at hand, many pricing models are often utilized, including value-based, competitor-based, cost-plus, and dynamic pricing.
Skimming is a pricing technique that involves setting initial product prices high and then lowering them as competitors enter the market. Penetration pricing is the reverse of skim pricing.
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On your property tax bill, you see the following table. destination share of your taxes roads $241 schools $896 public safety $154 township $177 what percentage of your taxes went to funding public safety? a. 10.49% b. 12.06% c. 11.72% d. 8.94% please select the best answer from the choices provided a b c d
Answers
As per the property tax bill received by the person, such person pays around 10.49% of his total tax liabilities towards funding the public safety if $154 are paid.
What are tax liabilities?Tax liabilities are the amount of tax that an eligible taxpayer is under an obligation to pay to the respective tax-collecting authorities.
As per the given information, it has been computed that a person pays a total tax of around $1468 and public safety taxes that are paid are $154.
Computation of the proportion of percentage of public safety out of the total tax liabilities is shown as below,
\(\rm Tax\ in\ Percentage\ towards\ Public\ Safety= \dfrac{Public\ Safety\ Tax}{Total\ Tax\ Liabilities}x\ 100\\\\\rm Tax\ in\ Percentage\ towards\ Public\ Safety= \dfrac{154}{1468} x\ 100\\\\\rm Tax\ in\ Percentage\ towards\ Public\ Safety= 10.49\%\)
Hence, option A; the person pays around 10.49% of his total tax liabilities towards funding the public safety if he pays $154 for tax liabilities of $1468.
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Answer:
The correct answer is A.
Explanation:
10.49%
what does mcnamara believe is the solution to highly complex and risky supply chains that we have today?
Answers
Robert McNamara believed that improving information and communication technology, along with effective collaboration and communication, is the solution to managing the complex and risky supply chains of today.
Robert McNamara, a former Ford Motor Company executive and U.S. Secretary of Defense, believed that the solution to highly complex and risky supply chains is to improve information and communication technology. He believed that by using advanced computer systems and networks to gather and analyze data on every aspect of the supply chain, companies could make more informed decisions and respond quickly to changes and disruptions.
McNamara advocated for the use of sophisticated modeling techniques and simulations to identify potential risks and develop contingency plans. He also emphasized the importance of collaboration and communication among all stakeholders in the supply chain, including suppliers, manufacturers, distributors, and customers.
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two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.
Answers
The two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is more than the allocatively efficient amount.
What is meant by oligopolistic firms?
In economics, oligopolistic firms means a small number of firms who realize they are interdependent in their pricing and output policies.
Given,
Here we need to find the missing term in the statement two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.
As per the definition of oligopolistic firms, if you want to set a price to cartel then the quantity must be higher that means it will be allocatively efficient amount.
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Bristol Company's contribution margin income statement is presented below. Sales for the current period consisted of 7,500 units. Compute the company's break-even point in (a) units, and (b) dollars Compute the margin of safety in (c) dollars and (d) percent. Bristol Company Contribution Margin Income Statement $225,000 Sales Variable costs Contribution margin Fixed costs Net income 90,000
Answers
Answer and Explanation:
The computation is shown below:
The Selling price per unit = $225,000 ÷ 7500 = $30
ANd,
Variable cost per unit = $135,000 ÷ 7500 = $18
a) Breakeven point = Fixed cost ÷ Contribution margin per unit
= $48,000 ÷ ($30 - $18)
= 4000 units
b) Breakeven dollars = Breakeven point × selling price per unit
= 4000 × 30
= $120,000
C) Margin of Safety in dollars = Sales Revenue - Breakeven dollars
= $225,000 - $120,000
= $105,000
d) Margin of Safety in percent
= $105,000 ÷ $225,000
= 46.67%
Assume IRR of Project A is 12%, IRR of Project B 15%, and the cost of capital is 13%. The correct investment decision is: a. We should invest in Project B. b. We should invest in both projects. c. We should invest in Project A.
Answers
To determine the correct investment decision between Project A and Project B, we need to compare the Internal Rate of Return (IRR) of each project to the cost of capital.
The correct investment decision in this case would be option (a), We should invest in Project B.
The IRR represents the discount rate at which the net present value (NPV) of the project's cash flows becomes zero.
Given the information provided:
IRR of Project A = 12%
IRR of Project B = 15%
Cost of Capital = 13%
To make the investment decision, we consider the following:
If the IRR of a project is higher than the cost of capital, it means that the project is expected to generate a return higher than the required return, indicating that it is potentially a good investment.
If the IRR is equal to the cost of capital, it means that the project is expected to generate a return exactly equal to the required return, indicating that the project will break even and neither create nor destroy value.
If the IRR is lower than the cost of capital, it means that the project is expected to generate a return lower than the required return, indicating that the project may not be a good investment.
Comparing the IRRs of the projects with the cost of capital:
IRR of Project A (12%) < Cost of Capital (13%)
IRR of Project B (15%) > Cost of Capital (13%)
Based on this comparison, we can conclude that Project B has a higher IRR than the cost of capital, while Project A has a lower IRR than the cost of capital. Therefore, the correct investment decision in this case would be:
a. We should invest in Project B.
Investing in Project B would potentially generate a return higher than the required return (cost of capital), indicating a more favorable investment opportunity compared to Project A.
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According to the speaker, what are the three traditional Gs of growth?
Answers
Answer:
Consistent, Competitive & Profitable.
Explanation:
correct on edge
The three traditional Gs of growth are Growth, Gratitude, and Giving
What is tradition?The standard of a piece of information being discussed is indicated by tradition. For instance, "Homer is said to have been born on the island of Chios, although many other places have historically claimed him as their own." It may never be possible to confirm or deny this custom.
Growth: In other words, if you develop your workforce, your business will do the same. Don't you make an effort to hire employees that are smarter than you Give them an opportunity to succeed while guiding them while they do so.tradition
Gratitude can take many different forms. Your customers conducting business with you, internal promotions, and improving someone. Investing in a better world and receiving assistance in whatever form are both aspects of gratitude.
Giving: is a straightforward conclusion; you give it your all without holding back. Giving is recognizing the need and taking action to provide assistance in any form that is practical. Giving ultimately causes the business world to whirl. If you do it, other people will too. That's how easy it is.
Therefore, Traditional Gs of growth are Growth, Gratitude, and Giving
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