Answer:
1) Consumer surplus of $4
2) producer surplus of $2
Explanation:
1) The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good or service.
Consumer surplus = Maximum price willing to pay - actual price
Consumer surplus = $9 - $5
Consumer surplus = $4
2) The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept.
Producer surplus = Total revenue - total cost.
Total revenue is the revenue received from selling.
Producer surplus = $5 - $3
Producer surplus = $2
Therefore, the results of the transaction between Jonathan and Jennifer are a consumer surplus of $4 and a producer surplus of $2.
Answer:
a) $7,488
Explanation:
depreciation expense per year:
year 1 = $39,000 x 20% = $7,800
year 2 = $39,000 x 32% = $12,480
<u>year 3 = $39,000 x 19.20% = $7,488 ⇒ third year</u>
year 4 = $39,000 x 11.52% = $4,492.80
year 5 = $39,000 x 11.52% = $4,492.80
year 6 = $39,000 x 5.76% = $2,246.40
IN order to calculate MACRS depreciation, just multiply the assets depreciable value times the depreciation percentage.
Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on the terminal value used.
What is intrinsic value of stock?
A thing, asset, or financial contract can have intrinsic value if it has some basic, objective value. It may be a good buy or a good sale if the market price is less than that value. There are various approaches for determining a reasonable appraisal of a share's intrinsic value when reviewing equities.
What does terminal value mean?
The worth of a firm, project, or asset after the period for which future cash flows can be predicted is known as its terminal value (TV). After the projected period, terminal value assumes a company will continue to expand at a specific pace indefinitely.
Learn more about intrinsic value: brainly.com/question/14582100
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Answer:
$27,000
Explanation:
The following costs were incurred by Smith's company during the month of March
Direct labor $53,000
Indirect labor 18,000
Salary of corporate vice president for advertising 25,000
Direct materials 48,000
Indirect materials 4,000
Interest expense 7,500
Salary of factory supervisor 3,000 Insurance on manufacturing equipment 2,000
Therefore the actual manufacturing overhead for March can be calculated as follows
= Indirect labour + indirect materials + salary of factory supervisor + insurance on manufacturing equipments
= $18,000 + $4,000 + $3,000 + $2,000
= $27,000
Hence the actual manufacturing overhead for March is $27,000
Answer:
The correct answer is Spot market.
Explanation:
The spot market or spot market is one in which both the transaction and the settlement of an operation coincide on the same date. Although it is considered cash market when delivery occurs up to a maximum of 2 days later.
In spot markets, transactions are usually settled within a day or two after the date of purchase / sale. This is what is understood as a settlement in D + 1 or D + 2. The transactions are also closed at the current price on the asset in question that exists at the time of the transaction. This is one of the main differences between the cash market and the futures market.
