Answer is A
Explanation: Consumer surplus actually happens when a customer is willing and ready to pay for a particular product than its current market price. It is a measure of the additional benefits a consumer gets after paying for a product even though they are willing to pay more.
For example: Let's assume you want to get a IPhone 8 plus and you value it at $800 dollars, which you are ready to pay, but realise it is sold at $700. When you buy it at $700, the customer surplus is $100, that is a difference between how much you were willing to pay and the price you eventually got it.
Consumer Surplus changes as the equilibrium price of a good rises or falls. If the price of a good rises, the consumer surplus decreases but when the price of the good falls, the consumer surplus increases.
Answer:
The answer is: C) Low efficiency and high effectiveness.
Explanation:
The company Kiddy Toys made a great product (High effectivness) but they couldn´t produce it a reasonable cost, so it was very expensive to sell (Low efficiency). As a result they had a great toy that very few customers could afford to buy.
Sometimes a company is able to manufacture a great product, they had a terrific idea that lots of people will like and want. The problem is that if they can not manufacture that product at a low cost then they will never have high sales volumes. This is the very exact reason why most toys nowadays are created in the US but mass produced in China.
Answer:
The correct answer would be option C, $984000
Explanation:
Account Receivables on January 1 = $296000
Expected Sales for January= $860000
Cash sale Expectation = 20% of Sales
= 20% of 860000
= 0.2*860000
Expected Cash Sale = 172000
Remaining 80% of Sales would be on account as:
= 80% of 860000
= 0.8 * 860000
= 688000
Out of this 80% sales, 75% are expected to be collected in the month of sale, that is:
= 75% of 688000
= 0.75*688000
= 516000
So the January cash collections would be:
Account Receivables for Jan + Expected Sales on Cash + Cash received from account on the same month of sale:
Total Cash Received in the month of Jan:
= 296000+172000+516000
= $984000
Answer:
Break even point = $16000000
Explanation:
given data
sales mix for Sporting Goods = 65%
sales mix for Sports Gear = 35 %
fixed costs = $5920000
contribution margin ratio = 30%
Sports Gear = 50 %
to find out
break-even point
solution
we know that Break even point is
Break even point = 
........................1
here
Weighted average contribution margin ratio is
Weighted average contribution margin ratio = Contribution margin ratio × weight ...........................2
Weighted average contribution margin ratio = 30 × 65% + 50 × 35%
Weighted average contribution margin ratio = 37%
so from equation 1
Break even point =
Break even point = 
Break even point = $16000000
Answer:
Option e: An increase in the corporate tax rate
Explanation:
Corporate income tax rate is used to know how much people are willing to invest their new capital and also where they will place that new capital.
An increase in it is likely to encourage a company to use more debt in its capital structure.
The lower the corporate tax rate, the more it drives or leads to growth in capital stock, wages, jobs and others while the higer(increase) in corporate income tax rate, the more it affects economic decisions.
An Increase in a company's debt ratio will therefore lead to an increase in the marginal cost of both debt and equity financing. Also this action may lower the company's WACC
