Answer:
Explanation:
We were informed from the question that;
BEFORE; the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle.
AFTER; After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle and producers receive $3 per bottle (after paying the tax).
✓✓The amount of tax on wine = $6 - $3 = $3 per bottle
✓✓The tax burden on consumers = The amount paid after tax - The amount paid before tax
= $6 - $4
=$2 per bottle
✓✓The tax burden on Producers = Price received before tax - price received after tax
= $4 - $3
=$1 per bottle
Hence, The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the burden that falls on consumers is $2 per bottle, and the burden that falls on producers is $1 per bottle.
The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers(FALSE)
This is false, since the The tax burden on Producers is $1 per bottle while that of The tax burden on consumer is $2 per bottle.
Answer:
The cost of depletion in the current year is $90,000
Explanation:
Santa Fe's current year cost of depletion=cost of rights*Turquoise extracted in the current year/total estimated turquoise to be extracted
cost of rights is $300,000
turquoise extracted in the current year is 1,500 pounds
total estimated turquoise to be extracted over a five-year period is 5000 pounds
cost of depletion in the current year=$300,000*1500/5000
=$ 90,000.00
By extension profit for the year assuming no other costs were incurred is :
$200,000-$90,000=$110,000
Answer:
4 years
Explanation:
The computation of the payback period is shown below:
Payback period is
= Cost of a Machine ÷ Annual cash flow
where,
Cost of a machine = $24,000
And, the annual cash flow is
= Net Income + Depreciation expense
= $2,000 + $4,000
= $6,000
Now placing these values to the above formula
So, the payback period is
= $24,000 ÷ $6,000
= 4 years
Answer:
$5
Explanation:
Unit labour cost = $50,000 / 10,000 = $5
I hope my answer helps you
Answer: $45,000
Explanation:
Given that,
Accounts receivable = $ 5,000
Sales revenue = $75,000
Cash = $15,000
Salaries and wages expense = $20,000
Rent expense = $10,000
Net income = Sales revenue - Salaries and wages expense - Rent expense
= $75,000 - $20,000 - $10,000
= $45,000
