Answer:
Price elasticity will increase
Explanation:
Price elasticity is defined as a measure of how sensitive quantity demanded of a product is the changes in price.
As a general rule when price increases the demand Falls and when price reduces demand rises.
Mathematically,
Price elasticity = (change in quantity demanded) ÷ (change in price)
In the given scenario other car manufacturers such as General Motors, decide to make and sell SUVs.
This will create a substitute in the market.
Ford motors will be forced to reduce price in order to maintain or increase their clientele base.
As price reduces the price elasticity will increase.
A loan is negotiated with the lender agreeing to accept $8,000 after one year, $9,000 after two years, and $20,000 after four years in full repayment of the loan. The loan is renegotiated so that the borrower makes a single payment of $37,000 at time T and this results in the same total present value of payments when calculated using an annual effective rate of 5%. Estimate T using the method of equated time. Also find T exactly.
Answer and Explanation:
The computation is shown below:
Discount rate 5%
Year Cash flow Discounting cash flows Cumulative cash flows
0
1 $8,000 7,619.05 7,619.05
2 $9,000 8,163.27 15,782.313
3 15,782.31
4 $20,000 16,454.05 32,236.36
PV of loan = 32,236.36
Now
37000 ÷ 1.05^t = 32236.36
t = 2.8248
Discounting cash flows is
= cash flows ÷ (1+rate)^year
The reasons to study economics include which of the following?
to learn a way of thinking
to be an informed voter
to understand society and global affairs
all of the above
Koby, age 16, works after school at FastFood from 4 p.m. until 11 p.m. On Friday night, the restaurant manager sees that Koby is exhausted, but insists that he remain until 4:30 a.m., cleaning up, then demands that he work Saturday morning from 8 a.m. until 4 p.m. On Saturday afternoon, as Koby drives home, he falls asleep at the wheel and causes a fatal car accident. Should FastFood be liable
Answer:
Hi how are you doing today Jasmine
Suppose scalpers buy 8,000 tickets and resell them for $100 each. How much profit do the scalpers earn?
Answer: See Explanation
Explanation:
Your question isn't complete but let me help out. Let's assume that Scalpers bought the tickets for $90 each. To find profit, the formula to use is:
= Total revenue - Total cost
Total revenue will be:
= 8000 × $100
= $800,000
Total cost will be:
= 8000 × $90
= $720,000
Profit = Total Revenue - Total cost
= $800,000 - $720,000
= $80,000
Therefore, profit will be $80,000.
At December 31, 2021, Crane Imports reported this information on its balance sheet. Accounts receivable $637,000 Less: Allowance for doubtful accounts 35,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $3,060,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,760,000 4. Write-offs of accounts receivable deemed uncollectible 42,000 5. Recovery of bad debts previously written off as uncollectible 15,000 (a) Prepare the journal entries to record each of these five transactions
Answer:
Crane Imports
Journal Entries:
1. Debit Accounts Receivable $3,060,000
Credit Sales Revenue $3,060,000
To record the sales on account.
2. Debit Sales Returns and Allowances $50,000
Credit Accounts Receivable $50,000
To record sales returns and allowances.
3. Debit Cash $2,760,000
Credit Accounts Receivable $2,760,000
To record cash collections from customers.
4. Debit Uncollectible Expenses $42,000
Credit Allowance for Doubtful Accounts $42,000
To record uncollectible accounts.
5. Debit Accounts Receivable $15,000
Credit Uncollectible Expenses $15,000
To reinstate a previously written bad debt.
Debit Cash $15,000
Credit Accounts Receivable $15,000
To record the receipt of cash on account.
Explanation:
a) Data and Calculations:
Accounts receivable $637,000
Less: Allowance for doubtful accounts 35,000
Balance = $602,000
b) Journal entries are used to initially record business transactions as they occur on a daily basis. They identify the accounts to be debited and credited. They form the basis for the postings to the general ledger where accounts are summarized according to their account titles.
what is the significance of operation research in modern management?
Answer:
Operations research is an important method that is used by modern management for solving complex problems under uncertain conditions. Operation research is used in business where the managers need to take risk since there are very few things are certain.
hope it helps!!
please mark as the brainliest!!
Stallion Corporation sold $100,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 12 percent, pay interest semiannually on January 1 and July 1. The entry to record interest income by Pony Corporation on December 31, 20X7, was as follows:
Note: Assume using straight-line amortization of bond discount or premium.
General Journal Debit Credit
Interest Receivable 6,000
Interest Income 5,750
Investment in Stallion Corporation Bonds 250
Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 20X7.
Required:
a. What was the original purchase price of the bonds to Pony Corporation?
b. What is the balance in Pony’s bond investment account on December 31, 20X7?
c. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercompany ownership of bonds in preparing consolidated financial statements for 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solution :
a).
Amortization of the bonds premium semi annually = $ 250
Amortization of the bonds premium annually = 250 x 2
= $ 500
Bond premium = 500 x 10
= $ 5000
Par value bond = $100,000
Premium on the bonds = $ 6000
∴ Original price of the bonds = $ 106,000
b).
Original purchase price = $ 106,000
Semi annually periods from 1 Jan 20X5 to 31 Dec 20X7 = 3 yrs x 2 = 6 periods.
The premium amortization till 31st Dec, 20X7 = $ 250 x 6 = $1500
The balance of the bond investment account = $ 106,000 - $1500
= $ 104,500
c).
Event 1
Accounts Debit Credit
Bonds payable $100,000
Bonds premium (6000-1500) $4500
Interest income (5750 x 2) $ 11500
Investment in the Stallion Bonds $104,500
Interest expenses $ 11500
Event 2
Accounts Debit Credit
Interest payable $ 6000
Interest receivable $6000
What are causes and effects of increasing marginal returns?
Answer:
the extra output or change in total product caused by adding one more unit of variable input. Increasing marginal returns: as long as each new worker contributes more to total output than the worker before, total output rises at an increasing rate.
Explanation:
Bella has perfected the art of candle making. She has made gifts for her friends for years and has always gotten rave reviews, so decided to make a business out of her craft. She plans to run the business out of her home so she can be there to raise her children and still participate in all of their activities. Bella is not interested in growing a large business; she just wants to make extra income. Bella is best described as a(n)
Answer:
micropreneur
Explanation:
From the question we are informed about the Bella , who has perfected the art of candle making. She has made gifts for her friends for years and has always gotten rave reviews, so decided to make a business out of her craft. She plans to run the business out of her home so she can be there to raise her children and still participate in all of their activities. Bella is not interested in growing a large business; she just wants to make extra income. In this case, Bella is best described as an micropreneur. micropreneur can as well be reffered to as small business owner. It's also known as microbusiness that has their operation on a very small scale, and their number of employees is usually not more than five.
_____ is the method of determining what a business will get in exchange for its products.
Command
Pricing
Supply
Market
Answer:
pricing
Explanation:
pricing is the amount you pay a buissness for their product.
Answer:
pricing
Explanation:
mainly bc the other person is right
Your SWOT analysis reveals no obvious options for growth with your current product lines. So you decide to use some retained earnings the firm has been saving and launch new product lines. After careful analysis you decide to launch two new product lines, one centered on plastic bags (such as trash bags and sandwich bags), the other a line of automobile-care products (such as soaps and waxes). Which corporate-level strategy are you pursuing
Answer:
"Unrelated diversification" is the correct solution.
Explanation:
Unrelated diversification would be a kind of diversification whenever a company introduces additional as well as completely irrelevant product range as well as enters market opportunities. This somehow happens whenever the company starts trying to consolidate into firms that support the concept and among the most commercial reward for something like an institution.a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers. a privately owned organization that serves its customers to make money so that it can survive. a group of people united through contractual or corporate ownership. a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. a publicly owned organization that serves the general population.
Why can internet banks offer better interest rates and lower fees than tradition banks?
A.They value their customers more.
B.They have fewer expenses.
C.They make money in different ways.
In 2014, a drought in the Midwest raised grain prices, leading to a decline in the size of cattle herds. Ultimately, the price of ground beef rose from about $3 a pound to over $4 by 2015. Demonstrate graphically the effect of the drought on equilibrium price and quantity in the ground beef market.
Answer:
please check the attached image for a graphical representation
Explanation:
As a result of the drought, the supply of ground beef would fall. This would lead to a leftward shift of the demand curve. As a result equilibrium price would rise and equilibrium quantity would fall
If you own a business, the loan payment, rent, and your salary are examples of "
Fergie has the choice between investing in a State of New York bond at 9.2 percent and a Surething bond at 8.5 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, in which bond should she invest?
Answer:
Explanation:
State of New York's
Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $760,000 and $520,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 8000 hours, respectively. What is the predetermined overhead allocation rate
Answer:
the Predetermined overhead rate is $95 per machine hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate is
= (Estimated manufacturing overhead cost ÷ Estimated machine hours)
= ($760,000 ÷ 8000)
= $95 per machine hour
Hence, the Predetermined overhead rate is $95 per machine hour
What document design strategy would improve the readability and comprehension of this passage?
The most important element of a business plan's financial plan is the cash budget, which shows the salary which the entrepreneur will earn. how much money is needed to start the business and keep it operating. how many units must be sold to recover start-up costs. the tangible assets owned by the firm. how many business units should be opened and the annual tax payment to be made.
Answer:
The correct answer is the second option: How much money is needed to start the business and keep it operating.
Explanation:
To begin with, when we talk about a cash budget that is refered to a financial plan we are talking about the paper that helps the manager to establish how much money will be needed and that it will also show the flow of it in every period select by the person, commonly every month. Moreover, a cash budger is the most important part of a financial plan due to the fact that it will help the entrepreuner to have and idea of how the money is expended and from where it comes from as well so in that way he will understand better the business and its operations.
A company's master budget for October is to manufacture and sell 30,000 units for a total sales revenue of $270,000, total variable costs of $180,000, and total fixed costs of $24,000. The company actually manufactured and sold 32,000 units and generated $45,000 of operating income in October. The flexible-budget operating income in October was:
Answer:
$72,000
Explanation:
The Starting point for flexing a Budget is to determine the Standard unit Selling Price and unit Cost Prices, then apply the amounts to the actual activity/production as shown below ;
Flexible-budget for the month of October
Sales ($270,000/30,000 x 32,000) $288,000
Less Variable Costs ($180,000/30,000 x 32,000) ($192,000)
Contribution $96,000
Less Fixed Costs ($24,000)
Operating Income $72,000
A manager of Paris manufacturing which produces computer hard drives, is planning to lease a new automated inspection system. The manager believes the new system will be more accurate than the current manual inspection process. The firm has had problems with hard drive defects in the past and the automated system should help catch these defects before the drives are shipped to the final assembly manufacturer. Below are the relevant information:
Current manual inspection system:
annual fixed cost = $35,000
Inspection variable cost per unit = $15 per unit.
New automated inspection system:
Annual fixed cost = $165,000
Inspection variable cost per unit = $0.55 per unit
1- Suppose annual demand is 8000 units. Should the firm lease the new inspection system?
2- NEW-SPEC, a firm that specializes in providing manual inspection processes for other firms, approached Paris manufacturing and offered to inspect parts for $19 each with no fixed costs. It assured Paris manufacturing that the accuracy and quality of its manual inspections would equal that of the automated inspection system. Demand for the upcoming year is forecast to be 8000 units. Should the manufacturer accept the offer?
Answer:
Paris Manufacturing
1. Based on cost considerations, the new inspection system should not be leased.
2. Based on cost considerations, the manufacturer should accept the NEW-SPEC offer.
Explanation:
a) Data and Calculations:
Annual demand for computer hard drives = 8,000 units
Current manual inspection system:
annual fixed cost = $35,000
Inspection variable cost per unit = $15 per unit.
Total cost for manual inspection system:
Variable costs $120,000 (8,000 * $15)
Fixed costs 35,000
Total costs $155,000
New automated inspection system:
Annual fixed cost = $165,000
Inspection variable cost per unit = $0.55 per unit
Total cost for automated inspection system:
Variable costs $4,400 (8,000 * $0.55)
Fixed costs 165,000
Total costs $169,400
Total cost with NEW-SPEC:
Variable costs $152,000 (8,000 * $19)
b) The improved efficiency will surely outrun the cost of the new automated inspection system. Therefore, I recommend that Paris should go ahead with the new system, despite the costs. Accepting the offer from NEW-SPEC provides the best financial efficiency. However, in the long-run, purchasing the automated inspection system might prove to be the best decision.
Space Tech Inc. had the following expenditures this year related to a new product it was developing: Research cost for the new design - $2,200,000 Development cost of the new product (after technological feasibility and product viability is established) - $800,000 Legal and filing fees for a patent for the new design - $100,000 The product was patented before the end of the year. Required: Under GAAP, how much is Space Tech required to expense with respect to the project
Answer:
$2,200,000
Explanation:
all research and development costs incurred before a new product or service is technological feasible must be expensed. The costs incurred afterwards may be capitalized.
Expensed costs = $2,200,000
Capitalized costs = $800,000 + $100,000 = $900,000
Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2014. On June 30, Martinez declared and paid a $75,000 cash dividend. On December 31, Martinez reported net income of $122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share. The securities are classified as available-for-sale. Situation 2 Monica, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $36,000. On December 31, Seles reported a net income of $85,000 for the year.
Answer:
1. 18-03
Dr Investment in AFS $2,60,000
Cr Cash $2,60,000
30-06
Dr Cash $7,500
Cr Dividend Revenue $7,500
31-12
Dr Securities Fair value Adjustment $40,000
Cr Unrealized Holding Gain $40,000
2. 01/01
Dr Investment in S Corp $81,000
Cr Cash $81,000
15/06
Dr Cash $10,800
Cr Investment in S Corp $10,800
31/12
Dr Investment in S Corp $25,500
Cr Revenue from Investment $25,500
Explanation:
1. Preparation of the journal entries
18-03
Dr Investment in AFS $2,60,000
(200000*10%*13)
Cr Cash $2,60,000
(Being to Record investment made)
30-06
Dr Cash $7,500
(75000*10%)
Cr Dividend Revenue $7,500
(Being to Record Dividend Earned)
31-12
Dr Securities Fair value Adjustment $40,000
Cr Unrealized Holding Gain $40,000
( 20000*2)
(Being To Record Investment at Fair Value )
2. Preparation of Journal Entries
01/01
Dr Investment in S Corp $81,000
(30000*30%*9)
Cr Cash $81,000
(Being to Record investment made)
15/06
Dr Cash $10,800
(36000*30%)
Cr Investment in S Corp $10,800
(Being To Record Dividend Earned)
31/12
Dr Investment in S Corp $25,500
(85000*30%)
Cr Revenue from Investment $25,500
(Being To Record Income earned)
Garcia Industries has sales of $167,500 and accounts receivable of $18,500, and it gives its customers 25 days to pay. The industry average DSO is 27 days, based on a 365-day year.If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant
Answer:
c. $488.77
Explanation:
Incomplete question "Assume all sales to be on credit. Do not round your intermediate calculations. Hint: focus on the DSO to figure out how much freed-up cash the company will have. Freed-up cash will be invested at 8%. a. $386.13 b. $601.18 c. $488.77 d. $562.08 e. $537.64"
Accounts Receivable (Industry DSO) = Sales Value*Industry Average DSO/Total Days in the Year
Using the values provided in the question in the above formula, we get, Accounts Receivable (Industry DSO) = 167,500*27/365 = $12,390.41
Freed-Up Cash = Value of Accounts Receivable at Company's DSO - Value of Accounts Receivable for Industry Average = 18,500 - 12,390.41 = $6,109.59
Effect on Net Income = Freed-Up Cash*Rate of Return = 6,109.59*8% = $488.77.
If the equilibrium price for tickets to a a Lady Antebellum concert is $100 each and they sell them for $85,
Answer: you save $15
Explanation: 100-85 is 15 and the tickets are selling for $85 instead of original price
Explanation:
The cost of an items is 200. what will be the cost of 50 such. write a simple program
College students often borrow money to attend school. Generally, the plan is to pay loans back through future earnings. In this way, capital markets and labor markets are intimately connected. Assume that the market for education and the market for college educated labor are perfectly competitive. Show what happens to the market for education, and the market for college educated labor if the government increases the number of very low interest loans.
who gains and who loses by this policy?
Producers of Schooling- gain or lose
college graduates - gain or lose
consumers of education (without loans)- gain or lose
Employers of college graduates- gain or lose
Answer: See Explanation
Explanation:
Based on the information provided in the question, the people who gain will be:
1. Producers of Schooling - Since the college students often borrow money to attend school, this ultimately means that there'll be an increase in the number of students who wants to go to college. This is beneficial to the producers of schooling as they'll get more students and make more revenue.
2. Employers of college graduates- Since the college students often borrow money to attend school, this ultimately means that there'll be an increase in the supply of labor. Since there is an increase, there will be a reduction in the wage rate as supply of labor will be more than the demand.
The losers will be:
1. College graduates - They are losers because they'll get a lower pay due to the rise in the number of people that'll graduate from college.
2. Consumers of education (without loans)- They're also losers as there'll be an increase in supply of labor and decrease in wage rate offered.
2.
"London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2800 tiles; each tile sells for $13.00. The company's records show the following direct materials were requisitioned for Job #266. LOADING...(Click the icon to view additional information.) Sierra Ceramics allocates manufacturing overhead at a rate of $30 per direct labor hour. What is the gross profit per tile on Job #266?"
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: The additional information which it discussed in the question is missing and without the information, it can be solved. However, I have found similar question on the internet and will be using its data to solve this question.
Tiles Completed = 2800
Each Tile sells for = $13
Here, we are required to find the gross profit per tile on job #266.
Formula for Gross Profit = Selling price of single tile - Job cost per unit.
But here, we don't know the job cost per unit and for that, we need that additional information which is missing. So, I will using following data for the sake of understanding and concept of the problem.
Direct Materials:
Basic Terra Cotta tiles cost = $10,000
Specialty Paint = $35
High Gloss Gaze = $48
Total Direct Materials Cost = $10,000 + $35 +$48 = $10,083
Direct Labor:
Cooper cost = $450
Kline cost = $300
Total Labor Cost = $750
Manufacturing Overhead = 38 hours x $27 = $1026
Total Job Cost = $11859
Number of Tiles = 2800
So,
Job Cost per unit = Total Job Cost / Number of Units
Job Cost per unit = $11859/ 2800
Job Cost per unit = $4.23
Now, we can calculate the required gross profit per tile on Job #266.
Formula for Gross Profit per tile = Selling price of single tile - Job cost per unit.
Gross Profit per tile = $13 - $4.23
Gross Profit per tile = $8.77 per tile
There will be a higher equilibrium price and quantity if
O supply increases and demand stays the same
O supply increases and demand increases
demand increases and supply stays the same
supply increases and demand decreases
Your friend Alice is a full-time college student, earned $4,000 working at the campus bookstore over two semesters last calendar year, and also got a part-time job as a cashier in February, earning $9,500. Alice knows that you have been learning about taxes in your personal finance lessons and asks you, “Do I need to file taxes this year? If I do, what is the process like?”
Single, under the age of 65 and not older or blind, you must file your taxes if: Unearned income was more than $1,050. Earned income was more than $12,000. Gross income was more than the larger of $1,050 or on earned income up to $11,650 plus $350.
Sorry, I can not answer the second part to the question sorry.
In open economies, A. countries can save only by acquiring foreign wealth. B. investment always refers to the domestic stock market. C. unlike the case of a closed economy, saving and investment are not necessarily equal. D. saving and investment are necessarily equal contrary to the case of a closed economy. E. as in a closed economy, saving and investment are not necessarily equal.
Answer:
C. unlike the case of a closed economy, saving and investment are not necessarily equal
Explanation:
An open economy occurs when international businesses in addition to domestic ones engage in trading activities.
Exchanges that occur may be for management expertise, goods and services, or technology.
In contrast a closed economy is one where there is no buying or selling with international businesses.
In an open economy people can put their savings in investment outside of the country. So domestic investment is usually not equal to savings.
However in a closed economy. All the savings are invested locally, so investment is usually equal to savings