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liq [111]
2 years ago
12

Holding the nonprice determinants of demand constant, a change in price would:

Business
1 answer:
lianna [129]2 years ago
7 0

Holding the nonprice determinants of demand constant, a change in price would result in either a decrease in demand or an increase in demand.

An alternate in a nonprice determinant changes the relationship between rate and amount demanded, either increasing or reducing the amount demanded at every rate. on occasion referred to as non-very own-rate determinant. A boom or decrease in the amount demanded of an awesome, service, or resource at each fee.

The demand curve shifts horizontally. A surplus will arise in a market if: the quantity provided at a given rate exceeds the amount demanded at that rate.

Whilst a nonprice determinant of demand modifications calls for curve shifts, there may be a boom or lower in demand. when the rate of great adjustments, we move along the demand curve to a new factor on the curve, and there's a boom or lower in quantity demanded.

Learn more about demand here: brainly.com/question/1245771

#SPJ4

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According to Redpath and Greg Urban, what is the threshold amount for determing if a substantial basis adjusment is mandatory?
Nataly_w [17]

Answer: According to Ian Redpath and Greg Urban, the threshold amount required for conclusively stating whether a substantial basis adjustment is mandatory is $250,000. The amount required is $250,000 in order for one to  know whether they are in need for a substantial basis reduction or maybe not. It's required when the amount indeed exceeds $250,000.

5 0
3 years ago
Read 2 more answers
Jim had a beginning inventory of $5,500. During the month of April, he purchased $4,000 of food and had an ending inventory of $
Likurg_2 [28]

Answer:

1.23

Explanation:

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period.

Cost of Sales=Opening Inventory+Purchases-Closing Inventory

                      =5,500+4,000-3,800= 5,700

Average Inventory= Opening + Closing/2

                              = 5,500+3,800/2= 4,650

Inventory Turnover Ratio= <u>Cost of Sales</u>

                                            Avg Inventory

                                          = 5,700/4,650=1.23

8 0
3 years ago
Round Hammer is comparing two different capital structures: An all-equity plan (Plan l) and a levered plan (Plan Il). Under Plan
Dominik [7]

Explanation:

A). The computation of price per share is shown below:-

Debt outstanding ÷ (Stock outstanding of Plan 1 - Stock outstanding of

Plan 2)

= $1,730,000 ÷ (205,000 - 125,000)

= $21.63 per share

B a.) Under equity plan the value is

= Debt outstanding × Stock outstanding of Plan 1

= $21.63 × 205,000 shares

= $4,433,125

B b.) under the levered plan the value is

Price per share × Stock outstanding of Plan 2 + Debt outstanding

= $21.63 × 125,000 shares + $1,730,000

= $2,703,125 + $1,730,000

= $4,433,125

6 0
3 years ago
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 37,500 –$ 37,50
sp2606 [1]

Answer:

Year             Cash Flow (A)            Cash Flow (B)

0                      -37,500                      -37,500

1                         17,300                         5,700

2                        16,200                       12,900

3                        13,800                       16,300

4                         7,600                       27,500

1) Using an excel spreadsheet and the IRR function:

IRR project A = 20%

IRR project B = 19%

2) Using the IRR decision rule, Bruin should choose project A.

3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.

4) Again using an excel spreadsheet and the NPV function:

NPV project A = $6,331

NPV project B = $8,139

5) first we must subtract cash flows from A by the  cash flows from B:

1      $11,600

2     $3,300

3    -$2,500

4   -$19,900

then we calculate the IRR = 16%

Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B

6 0
3 years ago
White Tiger Electronics produces CD players using an automated assembly line process. The standard cost of CD players is ​$148 p
Stolb23 [73]

Answer:

A) a 23.5% decrease in materials

B) a 64% decrease in labor costs

C) a 29.1% decrease in overhead

Explanation:

White Tiger's multifactor productivity = $300 / $148 = 2.027

if we want to increase the multifactor productivity by 12%, it will = 2.27

since we will not change the sales price, we must determine the new total cost:

$300 / cost = 2.27

cost = $300 / 2.27 = $132.16 ≈ $132, which represents a $16 decrease

A) materials ⇒ $16/$68 = 23.5%

B) labor costs ⇒ $16/$25 = 64%

C) overhead ⇒ $16/$55 = 29.1%

4 0
3 years ago
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