Answer both parts of the following question. a. The San Francisco Chronicle reported that the toll on the Golden Gate Bridge was raised from $2 to $3. Following the toll increase, traffic fell by 5 percent. Based on this information, calculate the arc price elasticity of demand. Is demand elastic or inelastic
Answer:
The answer is "0.1".
Explanation:
Formula:
[tex]\text{Elasticity}= \frac{\% \text{volume changes in demand}}{ \% \text{price rise}}[/tex]
Calculating the value of price percent:
[tex]= \frac{(3-2)}{2} \times 100 \\\\= \frac{1}{2} \times 100 \\\\= \frac{100}{2} \\\\=50 \%[/tex]
Calculating the value of quantity change: [tex]= -5 \%[/tex]
Calculating the value of elasticity:
[tex]= \frac{-5}{50} \\\\ = \frac{-1}{10} \\\\= -0.1[/tex]
Through this convention, the environmental signal is decreased and elasticity =0.1 is achieved until conductivity. Whose comparatively in elasticity is not as high as 1.
A manufacturer has been selling 1000 flat-screen TVs a week at $350 each. A market survey indicates that for each $10 rebate offered to the buyer, the number of TVs sold will increase by 100 per week. (a) Find the demand function (price p as a function of units sold x). p(x) = Correct: Your answer is correct. (b) How large a rebate should the company offer the buyer in order to maximize its revenue? $ 125 Correct: Your answer is correct. (c) If its weekly cost function is C(x) = 61,000 + 110x, how should the manufacturer set the size of the rebate in order to maximize its profit?
Answer:
A. p(x) = (-1/10)x + 450x
B. 506,250
C. $280
Explanation:
(a) Calculation to Find the demand function
Let assume that the demand Q(p) is the LINEAR function of the price
Q(350) = 1000
dQ/dp = -100/10 = -10
Point-slope form :
Q-1000 = -10(p-350)
Q-1000 = -10p + 3500
Q= -10p+(3500+1000)
Q = -10p + 4500
Hence,
Q(p) = -10p +4500
The inverse is:
(Q-4500)/-10 = p
(-1/10)Q + 450 = p
Hence, p(x) = (-1/10)x + 450 where Q=x
Therefore the the demand function will be p(x) = (-1/10)x + 450x
(b) Calculation for How large a rebate should the company offer the buyer in order to maximize its revenue
Revenue = Price * Qauntity sold
R(p) = p*Q(p)
Revenue = p * (-10p + 4500)
Revenue= -10p^2 + 4500p
let Maximize:
0 = dR/dp = -20p + 4500
-4500 = -20p
p=-4500/-20
p = 450/2 = 225
Hence, Max. revenue
-10 (225)^2 + 4500 *225
= -506,250 + 1,012,500
= 506,250
Therefore How large a rebate should the company offer the buyer in order to maximize its revenue will be 506,250
(c) Calculation for how should the manufacturer set the size of the rebate in order to maximize its profit
Let C(x) represent cost to produce x television sets
Let C(Q(p)) represent cost to produce the demanded quantity
C(q(p)) = 61,000 + 110*Q(p)
C(q(p)) = 61,000 + 110* (-10p +4500)
C(q(p)) = 61,000 + -1,100p + 495,000
C(q(p)) = 556,000 - 1,100p
let calculate the profit using this formula
Profit = Revenue - Cost
Let plug in the formula
P(p) = -10p^2 + 4,500p - ( 556,000 - 1,100p)
P(p) = -10p^2 + 4,500p -556,000 + 1,100p
P(p) = -10p^2 + 5,600p - 556,000
Maximizing:
0=dP/dp = -20p + 5,600
Hence, maximizing profit occurs at price p=-5,600/-20 = $280
Therefore how should the manufacturer set the size of the rebate in order to maximize its profit will be $280
When the government subsidizes investment, such as with an investment tax credit, the subsidy often applies to only some types of investment. This question asks you to consider the effect of such a change. Suppose there are two types of investment in the economy: business investment and residential investment. The interest rate adjusts to equilibrate national saving and total investment, which is the sum of business investment and residential investment. Now suppose that the government institutes an investment tax credit only for business investment. a. How does this policy affect the demand curve for business investment
Answer:
The demand curve for business investment will shift upwards to the right, signaling an increased demand for business investment.
Investors will be attracted to invest more in business investment than they will invest in residential apartments. This is how it has worked.
Explanation:
An economy's business investment includes the investments in the machines, tools, and equipment that business entities need for the production of goods and services. On the other hand, its residential investment refers to the expenditure made for constructing or buying new houses or dwelling apartments for the purpose of living or renting out to others. If the government grants some tax credit to business investment, it will make business more attractive to the investing public.
Experience indicates that strategic alliances Multiple Choice have a high "divorce rate." are generally successful. work well in cooperatively developing new technologies and new products but seldom work well in promoting greater supply chain efficiency. work best when they are aimed at achieving a mutually beneficial competitive advantage for the allies. are rarely useful in helping a company win the race for global industry leadership and establish positions in industries of the future.
Answer:
have a high "divorce rate."
Explanation:
A strategic alliance can as well reffered to as strategic partnership and can be regarded as agreement that exist between two parties or more so that they can work in acheiving some objectives they agreed on even though they still remains as an independent organization to each other. It should be noted that Experience indicates that strategic alliances have a high "divorce rate."
A shoe company will make a new type of shoe. The fixed cost for the production will be $24,000. The variable cost will be $31 per pair of shoes. The shoes will sell for $100 for each pair. How many pairs of shoes will have to be sold for the company to break even on this new line of shoes
Answer:
Break-even point in units= 348
Explanation:
Giving the following information:
The fixed cost for the production will be $24,000. The variable cost will be $31 per pair of shoes. The shoes will sell for $100 for each pair.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 24,000 / (100 - 31)
Break-even point in units= 347.82 = 348
On July 1, 2019, Goode Company borrowed $150,000. The company signed a note payable with interest at 8 percent per year. The note and interest are due on December 31, 2019. On December 31, 2019, Goode paid $156,000 to settle the debt in full. Assuming no accruals for interest have been made during the year, transaction analysis of the $156,000 cash payment on December 31, 2019 should reflect which of the following?a) A decrease in stockholders' equity of $150,000, a decrease in liabilities of $6,000, and a decrease in assets of $156,000.b) A decrease in assets of $150,000, a decrease in stockholders' equity of $6,000, and a decrease in liabilities of $156,000.c) A decrease in liabilities of $150,000, a decrease in stockholders' equity of $6,000, and a decrease in assets of $156,000.d) A decrease in assets of $156,000 and a decrease in liabilities of $156,000.
Answer:
C. decrease in liabilities of $150,000, a decrease in stockholders' equity of $6,000, and a decrease in assets of $156,000
Explanation:
Calculation for what cash payment on December 31, 2019 should reflect
Dec-31
Dr Note payable $150,000 (Decrease liability)
Dr Interest expense 6,000
( 150,000*8%*1/2) (Decrease stockholders equity)
Cr Cash $156,000 (Decrease assets)
($150,000+$6,000)
Therefore cash payment on December 31, 2019 should reflect decrease in liabilities of $150,000, a decrease in stockholders' equity of $6,000, and a decrease in assets of $156,000.
Jane James owns an appliance store. She normally receives $50,000 worth of appliances per month. She does not like to owe people money and always pays her bills on the day she receives the invoice. Someone told her that if she delayed payment, she could actually increase her profit because the money would be earning interest in her account. She went through her bills and found that she actually had an additional ten days, on average to pay her invoices. She also found that she was earning 5 percent interest on the money she had in her money market savings account. If she delayed payment by ten days, how much additional interest would she earn for the year
Answer:
The correct answer is "$820".
Explanation:
Whenever she delays compensation by 10 days a month (even though she receives monthly invoices), she will indeed earn interest for something like a combined amount of 120 days (10 days x 12 months) again for full year of 365 days.
The interest earned will be:
⇒ [tex]50000\times 5 \ percent\times \frac{120}{365}[/tex]
⇒ [tex]50000\times 0.05\times 0.328[/tex]
⇒ [tex]820[/tex] ($)
Why is the United States concerned about China’s devaluation of the yuan?
Answer:
a stronger dollar cuts into inflation in the United States, and it might force the fed to cut interest rates by more than it would otherwise to sustain its desired pace of growth and price gains.
Explanation:
Act Now!, an organization devoted to voting rights, applied for a permit to protest the closing of polling places in poor neighborhoods. Genevieve, the head of the organization, wanted the protest to be on the lawn of the county courthouse. The county denied the permit on grounds that it would prevent people from accessing the courthouse. If Act Now! challenges this action in court, it will be reviewed by the judge using:___________
a) strict scrutiny.
b) rational basis scrutiny.
c) intermediate scrutiny.
d) no particular form of scrutiny (none is required in this situation)
Answer:
c) intermediate scrutiny.
Explanation:
In this particular scenario this will be reviewed by the judge using intermediate scrutiny. In this review the court will decide whether or not the case helps the government and/or the people in any way. The court case interests must further the interests of the government or people in the same way for it to pass the review. If the court case passes the review it will be reassessed and may be voted upon differently depending on the other details at hand.
The classic supply chain approach has been based on
forecasting which of the following parts of future
inventory using statistical trending?
Transfer
Demand
olololo
Lifecycle
Safety stock
Answer:
Demand
Explanation:
The classic supply chain approach statistics refers to data regarding past suppliers or sales through the distribution channels. A business can use this information to analyze sales trends. Once the sale trends are determined, future demand for products can be estimated. The business uses historical data from its supply chain to predict future sales and demand.
You are considering an investment of $10,000 in a mutual fund with a 2% front load and an annual expense ratio of 0.5%. You are also considering an investment in a bank CD paying 2% interest per year. Assuming risk is constant across the two investments, if you plan to invest for four years, what annual rate of return must the mutual fund earn for you to be better off in the mutual fund than in the bank CD
Answer:
r > 3.02%
Explanation:
Mutual fund wealth index after N years = (1+front load)*(1+r-expenses)^N
CD wealth index after N years = (1+rate)N
If investment is 4 years
(1+0.02)*(1+r-0.005)^4 = (1+0.02)^4
0.98*(1+r-0.005)^4 = 1.08243216
(1+r-0.005)^4 = 1.08243216/0.98
(1+r-0.005)^4 = 1.10452261
Taking 4th root both side
(1+r-0.005) = 1.10452261^(1/4)
1 + r - 0.005 = 1.02516472
r = 1.02516472 - 1 + 0.005
r = 0.03016472
r = 3.02%, r > 3.02%
Dedrick Inc. did not pay dividends in 2018 or 2019, even though 60,000 shares of its 7.5%, $50 par value cumulative preferred stock were outstanding during those years. The company has 900,000 shares of $2 par value common stock outstanding. Required: Calculate the annual dividend per share obligation on the preferred stock. (Round your answer to 2 decimal places.) Calculate the amount that would be received by an investor who has owned 3,100 shares of preferred stock and 29,000 shares of common stock since 2017 if a $0.40 per share dividend on the common stock is paid at the end of 2020. (Do not round intermediate calculations.)
Answer:
no hablo tacka tacka
Explanation:
tacka tacka gracias
use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves
the answer is D
Answer:
B. giving loans
Explanation:
Banks use a large proposition of their deposits to create loans for other customers. The federal reserve requires commercial banks to hold a small percentage of deposits as reserves. The reserve requirement is one of the monetary policy tools of the Federal Reserve.
In most cases, the reserve requirement is around 10 percent or below of the total deposits. As a fraction, 10 Percent is a tenth (1/10), which is a small proportion of the total deposits. The bigger percentage, 90 percent, is used to create loans to other customers.
Why do we need incentives for entrepreneurs?
The weight of a product is normally distributed with a standard deviation of 0.5 grams. If the production manager wants no more than 5% of the products to weigh more than 5.1 grams, then the average weight should be _____.
Answer:
4.28 grams
Explanation:
The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by the formula:
[tex]z=\frac{x-\mu}{\sigma} \\\\where\ \mu=mean,\sigma=standard \ deviation,\ x=raw\ score[/tex]
Given that:
P(x > 5.1 grams) = 5%, x = 5.1 grams, σ = 0.5 grams
P(x > 5.1 grams) = 5%
P(x < 5.1 grams) = 100% - 5% = 95%
P(x < 5.1) = 95%
From the normal distribution table, 95% corresponds with a z score of 1.645. Hence:
[tex]1.64=\frac{5.1-\mu}{0.5}\\\\5.1-\mu=0.82\\\\\mu=4.28\ grams[/tex]
Flax Corp. uses the direct method to prepare its Statement of Cash Flows. Flax's trial balances at December 31, 20X4 and 20X3, are as follows: December 31 20X4 20X3 Debits: 33,000 30,000 Cash $35,000 $32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant, & equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General & administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 $756,700 $976,100 Credits: Allowance for uncollectible accounts $1,300 $1,100 Accumulated depreciation 16,500 15,000 Trade accounts payable 25,000 17,500 Income taxes payable 21,000 27,100 Deferred income taxes 5,300 4,600 8% callable bonds payable 45,000 20,000 Common stock 50,000 40,000 Additional paid-in capital 9,100 7,500 Retained earnings 44,700 64,600 Sales 538,800 778,700 $756,700 $976,100 Flax purchased $5,000 in equipment during 20X4. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its Statement of Cash Flows for the year ended December 31, 20X4, for cash paid for goods to be sold?
Answer:
the cash paid for goods to be sold is $226,500
Explanation:
The computation of the cash paid for goods to be sold is shown below:
= Cost of goods sold + Opening trade account payable - closing trade account payable + closing inventory - beginning inventory
= $250,000 + $17,500 - $25,000 + $31,000 - $47,000
= $226,500
Hence, the cash paid for goods to be sold is $226,500
Skysong, Inc.'s net income for the current year was $394000. Depreciation was $51000. Accounts receivable and inventories decreased by $16000 and $26000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2000 and $13000. Equipment was sold at a gain of $7400. How much cash was provided by operating activities
Answer:
Skysong, Inc.
Cash provided by operating activities =
$502,000
Explanation:
a) Data and Calculations:
Net income = $394,000
Depreciation 51,000
operating cash $445,000
Net working capital:
Accounts receivable $16,000
Inventory 26,000
Prepaid expenses 2,000
Salaries payable 13,000 57,000
Net cash from operating $502,000
b) The operating activities section of Skysong's cash flows statement depicts the ability of the company to generate cash from its main business activities. The net cash from operating activities is determined by adjusting its net income with non-cash flows (e.g. depreciation expenses) and working capital changes. A decrease in the current assets represents a source of operating cash, just as an increase in the current liabilities also represents a source of operating cash.
2. It is the intentional planting of trees or shrubs that are grown for food
production.
A. Orchards
B. Plants
C. Shrubs
D. Trees
Answer:
A.
Explanation:
An orchard can be described as a tree garden where plants are sown intentionally. The term 'orchard' is derived from an Old English word 'orceard', meaning 'fruit garden.'
Orchards is a fruit farm where trees or shrubs are intentionally sown with the purpose of food production. Some examples include apple orchards, orange orchards, etc.
Therefore, option A is the correct answer.
James has earned his doctorate in kinesiology and gone on several job interviews. He has been offered positions at different universities. James is planning to move out of state next year, so his primary factor for consideration is that he not be tied down to a long-term commitment. Which option would work the best for him?
a tenure-track position as an assistant professor at a liberal-arts college
a position as an adjunct professor at a technical college
The director of a community athletic center
a postdoctoral fellow at a university
Van is sick and tired of his job. His doctor certifies that his health may be compromised if he continues to work at his current job. He sells his life insurance policy to Life Settlements, Inc. for $50,000 so he can take a break from work. He has paid $10,000 so far for the policy. How much of the $50,000 must Van include in his taxable income
Answer:
$40,000
Explanation:
Based on the information given How much of the amount of $50,000 that Van must include in his taxable income will be $40,000 ($50,000-$10,000). The reason why he must pay tax on the amount of $40,000 gain ($50,000-$10,000) on the sale of the policy is that all the necessary requirements for the death benefit has not been meant by Van.
Therefore Van must include in his taxable income the amount of $40,000.
Insurance is a financial service that allows
Answer:
allows a consumer to transfer risk to a company.
Explanation:
During the month of March, Harley's Computer Services made purchases on account totaling $45,500. Also during the month of March, Harley was paid $11,000 by a customer for services to be provided in the future and paid $37,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,300, what is the balance in accounts payable at the end of March
Answer:
$85,900
Explanation:
The balance in the account payable at the end of March is computed as;
= Beginning balance of account payable + purchase made - paid amounts of its account payable balance
= $78,300 + $45,500 - $37,900
= $85,900
Please note that the amount for services to be provided in the future is not in anyway related to account payable, thereby must be excluded.
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statute at auction for a price of $10,710,500. Unfortunately for the previous owner, he had purchased it in 2010 at a price of $12,738,500. What was his annual rate of return on this sculpture
Answer:
-3.41%
Explanation:
The computation of the annual rate of return is shown below;
We use the formula:
Future value = Present value × (1 + rate of interest)^number of years
$10,710,500 = $12,738,500 × (1 + rate of interest)^5
($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)
(1 + rate of interest) = 0.965913622
r = (0.965913622 - 1) × 100
= -3.41%
An investment offers $6,260 per year for 17 years, with the first payment occurring 11 years from now. If the required return is 3 percent, what is the value of the investment? (HINT: Remember that when you calculate the PV of the annuity, the claculator gives you the present value of the annuity 1 period before the annuity starts. So if the annuity starts in year 7, that calculator will to give you the persent value of annuity in year 6. Now you have to bring this number to period 0 by inputting: N=6 (1 period before the annuity starts, in your case it would be a different number depending when your annuity starts) R=3 FV=Present value of annuity you found in step 1. And you solve for PV)
Answer: $61,328.15
Explanation:
The amount paid is per year so this is an annuity. It will begin 11 years from now so one should find the present value in that year:
Present Value of annuity = Annuity * ( 1 - ( 1 + rate) ^ - no. of periods) / rate
= 6,260 * ( 1 - ( 1 + 3%) ⁻¹⁷) / 3%
= $82,419.90
That is the present value if the annuity starts 11 years from now which means that it is the present value 10 years from now (ordinary annuities are paid end of period).
You need to discount to current period:
= 82,419.90 / ( 1 + 3%)¹⁰
= $61,328.15
Nettle Co. uses process costing to account for the production of rubber balls. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs. Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs. April costs were $36,000 for materials and $40,000 for conversion costs. Ending inventory still in process was 4,000 units (100% complete for materials, 50% for conversion). The equivalent cost per unit for materials using the FIFO method would be closest to:
Answer:
$3
Explanation:
The computation of the equivalent cost per unit for materials using the FIFO method is shown below:
= Materials cost ÷ equivalent units in materials
= $36,000 ÷ 12,000 units
= $3
hence, the equivalent cost per unit for materials using the FIFO method is $3
To be considered part of a market, an individual must
Answer:
Have both willingness to buy and the financial resources needed to buy.
Tiger Inc. has total sales of $35,821, cost of goods sold is $10,832, general and administrative expenses are $8,240, and depreciation is $523. The tax rate is 21 percent. The firm does not have any interest expense. What is the operating cash flow
Answer:
the operating cash flow is $13,342
Explanation:
The computation of the operating cash flow is shown below:
Operating cash flow = (sales - Cost of goods sold - G&A expenses - depreciation expense) × (1 - tax rate) + Depreciation expense
= ($35,821 - $10,832 - $8,240 - $523) × (1 - 0.21) + $523
= $13,342
Hence, the operating cash flow is $13,342
Rousey, Inc., had a cash flow to creditors of $16,380 and a cash flow to stockholders of $6,740 over the past year. The company also had net fixed assets of $49,380 at the beginning of the year and $56,740 at the end of the year. Additionally, the company had a depreciation expense of $11,940 and an operating cash flow of $50,265. What was the change in net working capital during the year?
Answer:
$7,845
Explanation:
Calculation for What was the change in net working capital during the year
First step is to calculate the Cash flow from assets
Cash flow from assets = $16,380 + 6,740
Cash flow from assets= $23,120
Second step is to calculate the Net capital spending
Net capital spending = $56,740 − 49,380 + 11,940
Net capital spending = $19,300
Now let calculate the Change in net working capital
Change in net working capital = $50,265 − 19,300 − 23,120
Change in net working capital= $7,845
Therefore the change in net working capital during the year will be $7,845
4.9 Each day of the week you meet with your direct supervisor and your coworkers for a morning meeting. The meeting is open-forum and issues, goals, topics, and ideas are all discussed at the meeting, during which the supervisor responds when able and asks for feedback often. This is an example of ___________________________________. A. authority compliance management B. team management C. country club management D. middle-of-the-road management
Answer:
B. team management
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.
This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
In this scenario, each day of the week you meet with your direct supervisor and your coworkers for a morning meeting. The meeting is open-forum and issues, goals, topics, and ideas are all discussed at the meeting, during which the supervisor responds when able and asks for feedback often. This is an example of team management.
Eaton Tool Company has fixed costs of $407,400, sells its units for $90, and has variable costs of $48 per unit. a. Compute the break-even point. b. Ms. Eaton comes up with a new plan to cut fixed costs to $320,000. However, more labor will now be required, which will increase variable costs per unit to $51. The sales price will remain at $90. What is the new break-even point
Answer and Explanation:
The computation of the break even point is given below
As we know that
Break even point is
= (Fixed cost) ÷ (Selling price per unit - variable cost per unit)
a. Break even point is
= ($407,400) ÷ ($90 - $48)
= 9,700 units
b. The break even point is
= ($320,000) ÷ ($90 - $51)
= 8,205 units