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3 years ago

When a good with a perfectly inelastic demand is taxed, the incidence of the tax is borne:

Business

1 answer:

velikii [3]3 years ago

4 0

Answer:

Option (C) is correct.

Explanation:

The goods with a perfectly inelastic demand with any changes in the prices of the commodities are generally have no effect on the demand for a good. This means that if there is an imposition of tax on the good with a perfectly inelastic demand then this will lead to increase the price level by the full amount and therefore, the incidence of this tax is fully borne by the consumers.

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If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is view

olganol [36]

Answer: The investment is written down to fair value, and only the credit loss component of the impairment loss is recognized in net income.

Explanation: The fair value of the debt is simply its value if you adjust the price of the debt so that a buyer would be earning the market rate of interest. If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is viewed as "other than temporary" because the company has incurred a credit loss on the investment then the investment is written down to fair value, and only the credit loss component of the impairment loss is recognized in net income.

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3 years ago

E3-27 (book/static) The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants to

vazorg [7]

Answer:

Explanation:

Contribution Margin=Sales - variable cost =$8.75-$3.50=$5.25

Contribution Margin Ratio = Contribution Margin / Sales = $5.25/ $8.75=60%

Pre-Tax Net Income=Net Income/(1-tax rate)

$117,600/(1-0.36)=$183,750

Target Revenue =Fixed cost +Target Pre-Tax net Income/Contribution margin Ratio =($430,500+$183,750)/0.6=$1,023,750

2. Number of customers needed to Break Even

Fixed costs/Contribution margin per unit=$430,500/$5.25=82,000 Customers

Number of customers to earn 117,600 = (Fixed costs + 117,600)/5.25 = (430,500+117,600)/5.25 = 104,400

Sales (170,000*8.75) 1,487,500

Less: Cost of goods sold (170,000*3.50) -595,000

Contribution margin 892,500

Less: fixed costs -430,500

Net Income before tax 462,000

Less: tax rate (462,000*36%) - 166,320

Net Income after tax 295,680

3 0

2 years ago

What is the statement below an example of?

Ber [7]

"I am looking for a management position in a non-profit organization where I can apply my administrative and problem-solving skills to help protect the environment and endangered animal species." C. Letter of interest

A letter of interest is also known as a letter of intent or a cover letter. This type of letting outlines what type of job you are looking for and the experience you have that correlates. A letter of interest is a more relaxed way to express your interest and skills compared with a resume. Most employees require both a cover letter and a resume when applying for a position.

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3 years ago

Read 2 more answers

Joe decided to start washing cars on his street. The other kids in the neighbourhood noticed Joe was making a lot of money washi

Norma-Jean [14]

Joe decided to start washing cars on his street. The other kids in the neighborhood noticed Joe was making a lot of money washing cars and decided to open their own car wash. When they opened their own car wash, the equilibrium price decreased and the equilibrium quantity increased.

The price at which the quantity provided and demanded are equal is referred to as the equilibrium price. It is established by where the demand and supply curves cross. If more goods or services are produced than are needed to satisfy demand at the going rate, there is a surplus, which pushes prices lower.

Reduced demand will result in a drop in the equilibrium price and a reduction in supply. With everything else remaining constant, an increase in supply will result in a decrease in the equilibrium price and an increase in the amount required. The equilibrium price will increase as the supply declines, while the quantity needed will go down.

Learn more about equilibrium price and quantity here

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8 0

1 year ago

Sean relocated to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't

Usimov [2.4K]

Answer:

The answer is: D) inseparability

Explanation:

Inseparability in marketing means that you can't separate the production of the service from its consumption.

In other words, the doctor who offers the service comes together with the service he offers.

The doctor may have treated Sean's health issues in a correct manner and probably helped to cure Sean, but if Sean doesn't like the doctor then he will not return. Sean can not separate the doctor form the service he delivers.

3 0

3 years ago