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2 years ago

Suppose the government in your city imposes a $0.50 excise tax on gasoline. the burden of this tax falls on:_____.

1 answer:

4 0

Let's say that gasoline is subject to a $0.50 excise tax in your city. This tax affects both buyers and sellers equally.

Depending on the elasticity of demand and supply, a tax's burden is split between purchasers and sellers. Depending on their alternatives, buyers' and sellers' desire to exit the market is represented by elasticity. The relationship between supply and demand price elasticity and tax incidence is also possible. The tax burden is placed on the purchasers when supply is more elastic than demand. The cost of the tax will be borne by the producers if demand is more elastic than supply.

Learn more about the burden of this tax here.

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Active endeavors specializes in sporting equipment. recently, it has decided to add to its business units by opening a steakhous

poizon [28]

Active endeavors specializes in sporting equipment. Recently, it has decided to add to its business units by opening a steakhouse near a convention center. This strategy is an example of: conglomerate diversification.

Conglomerate diversification is a growth strategy when organizations add new products or services that are vastly different from anything they've sold prior. These new business opportunities are unrelated to their previous and operate completely different.

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3 years ago

Illinois Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hou

Harlamova29_29 [7]

Answer:

$480

Explanation:

Data provided in the question:

Machine Hours Repair Costs

2,400 $6,385

1,200 $3,480

2,000 $5,285

3,400 $8,980

Now,

Machine Hours Repair Costs

Highest 3,400 $8,980

Lowest 1,200 $3,480

Difference 2,200 $5,500

Unit variable cost = $5,500 ÷ 2,200

= $2.5

Total cost at high level = $8,980

Machine hours highest level = 3,400

Also,

Total cost at high level = Fixed cost + Variable cost at highest level

$8,980 = Fixed cost + [ $2.5 × 3,400 ]

Fixed cost = $8,980 - [ $2.5 × 3,400 ]

= $8,980 - $8,500

= $480

7 0

3 years ago

In marketing, promotion usually involves a company or organization

DerKrebs [107]

In Marketing, promotion refers to any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand, or issue. The aim of promotion is to increase awareness, creat interest, generate sales, or create brand loyalty. So yes, promotion would involve trying to get a message across to a potential customer.
Answer: True

6 0

3 years ago

When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ___

azamat

Answer:

The Answer is B) Rises in the secondary market decreases.

Explanation:

When the coupon rate on newly issued bonds decreases relative to older, outstanding bonds, the market price of the older bond rises in the secondary market.

A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate

For example, a $2,500 bond with a coupon of 10% pays $250 a year. Typically these interest payments will be semiannual, meaning the investor will receive $250 twice a year.

If two bonds offer different coupon rates while all of their other characteristics (e.g., maturity and credit quality) are the same, the bond with the lower coupon rate generally will experience a greater decrease in value as market interest rates rise.

Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.

Cheers!

4 0

3 years ago

The partnership of Keenan and Kludlow paid the following wages during this year:

blagie [28]

Answer:

a. The Net FUTA tax for the partnership for this year is $1,680.

b. The SUTA tax for this year is $1,062.

Explanation:

a) Data and Calculations:

M. Keenan (partner) $85,000

S. Kludlow (partner) 75,000

N. Perry (supervisor) 53,000

T. Lee (factory worker) 34,600

R. Rolf (factory worker) 29,800

D. Broch (factory worker) 6,900

Ruiz (bookkeeper) 25,400

C. Rudolph (maintenance) 5,100

Gross payroll = $314,800

FUTA rate is 6% for the first $7,000

Gross Pay FUTA SUTA

(first $7,000) (first $9,000)

N. Perry (supervisor) 53,000 $420 $265.50

T. Lee (factory worker) 34,600 420 265.50

R. Rolf (factory worker) 29,800 420 265.50

D. Broch (factory worker) 6,900 0 0

Ruiz (bookkeeper) 25,400 420 265.50

C. Rudolph (maintenance) 5,100 0 0

Payroll for employees = $154,800 $1,680 $1,062

b) The FUTA tax rate is 6.0%. The tax applies to the first $7,000 that Keenan and Kludlow paid to each employee as wages during the year. This first $7,000 is often referred to as the federal or FUTA wage base. The state's SUTA tax rate depends on each state where SUTA is collected. Note that the additional $200 owed to Rudolph does not alter his base wages which fall below $7,000.

6 0

3 years ago