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4 years ago

How do externalities encourage/discourage descions that we make?

1 answer:

6 0

I think our decisions are most profoundly made up based on individual moral and values. So the extend to which an individual applies a moral analyses of the impact of producing or consuming a particular good or service on the next person they are most likely to be informed on the decision to make.

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On February 12, Year 1, VIP Publishing, Inc., purchased the copyright to a book for $15,000 and agreed to pay royalties equal to

anyanavicka [17]

Answer:

Royalty expense = $140,000

Explanation:

The royalty expense consists of 2 components.

A fixed amount of $60,000

A variable amount as 10% of sales.

Total royalty expense attributable to income statement is

Royalty expense = 60,000 + (800,000*0.10)

Royalty expense = $140,000

This is the amount deductible in income statement.

The copyright purchase of $15,000 is a company asset, recorded in balance sheet.

Hope that helps.

7 0

4 years ago

Which roles do franchisees play in case of a product distribution franchise?

rjkz [21]

In a product distribution franchise, franchisees act as dealers, retailers, or

Of the franchisor’s products.

Explanation:

There are different types of franchises that are based around a certain need of the firm or sometimes even the government on its sanction to provide a certain type of service in a franchise with the owners..

So it is to be seen that for a product distribution franchise too, that should be the case.

It is the case as the franchisees act as dealers, retailers or sellers of the products that are made inside the franchise or by the propitiate.

7 0

4 years ago

When the government subsidizes investment, such as with an investment tax credit, the subsidy often applies to only some types o

irga5000 [103]

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.

8 0

3 years ago

Monroe manufacturing has a quick ratio of 2.00x $31,000 in cash $17,500 in accounts recivable some inventory total current asset

UkoKoshka [18]

Answer:

Inventory turnover ratio = 19.05 times

Explanation:

Quick ratio = (Current assets - Inventory) / Current liabilities

2 = (70,000 - Inventory) / 24,500

Inventory = $21,000

Inventory turnover ratio = Total sales / Inventory

Inventory turnover ratio = 400,000 / 21,000

Inventory turnover ratio = 19.05 times

7 0

3 years ago

A newly formed firm must decide on a plant location. There are two alternatives under consider- ation: locate near the major raw

Furkat [3]

your question is incomplete, as some important values are missing. Please let me assume your question to be.

newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local sup- pliers. Revenue per unit will be $185 in either case. Using the following information, determine which location would produce the greater profit.

Assuming Omaha to be the site of the major raw material, and Kansas to be the site of major customers.

Annual fixed cost :

Omaha= $1,000,000

Kansas= $1,200,000

Variable cost per unit:

Omaha= $30

Kansas= $45

Expected annual demand:

Omaha= 9,925

Kansas= 10,225

ANSWER:

The plant should be located at the place closer to the major raw material

EXPLANATION:

Profit = ( Revenue cost - variable cost) Quantity - annual fixed cost

STEP1: FIND PROFIT FOR KANSAS:

Profit = (185 - 45)10,225 - 1,200,000 = 1,431,500 - 1,200,00 = $231,500

If the plant is located close the major customers the annual profit will be $231,500

STEP2: FIND PROFIT FOR OMAHA:

Profit = (185 - 30)9,925 - 1,000,000

= 1,538,375 - 1,000,000 = $538,375

If the plant is located close to the major raw material the annual profit will be $538,375

BECAUSE THE ANNUAL PROFIT OF THE PLANT BEING CLOSE TO THE MAJOR RAW MATERIAL IS HIGHER, THEREFORE IT IS ADVISABLE TO LOVATE THE PLANT CLOSE TO THE MAJOR RAW MATERIAL

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3 years ago