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soldier1979 [14.2K]
3 years ago
15

Suppose that the market equilibrium price for a medical check-up is $50, in a market in which there is no health insurance. To e

ncourage more people to get a check-up, the local government indicates that the price of a check-up cannot be more than $40
a. Is this a price floor or a price ceiling?
b. Draw a graph to illustrate the implementation of the policy.
c. What happens to the number of check-ups in the market? Show on your graph.
d. What happens to consumer surplus in the market? What happens to producer surplus?

Business
1 answer:
never [62]3 years ago
4 0

Answer:

a. Price ceiling

b. see graph

c. Increases

d. Increases, decreases

Explanation:

a. Price ceiling is the maximum price or ceiling so to speak imposed by government for a particular commodity inorder to relieve purchase burden from the consumers.

b. Take note of the price ceiling in the graph attached.

c. Number of demanded check-ups increases, since they are now more affordable.

d. Consumer surplus increase by $10, while the producer surplus decrease by $10 ($50-$40).

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The owner of a bicycle repair shop forecasts revenues of $236,000 a year. Variable costs will be $69,000, and rental costs for t
maria [59]

Answer:

A. $71,200

Bi)$100,200

Bii)$100,200

Biii)$100,200

Explanation:

A. Preparation of an income statement for the shop based on thee estimates

INCOME STATEMENT

Revenues $236,000

Expenses:

Variable costs $69,000

Rental cost $49,000

Depreciation $29,000

Total Expenses $147,000

Tax profit $89,000

($236,000-$147,000)

Less Income Tax (at 20%) $17,800

(20%*$89,000)

Net Income $71,200

($89,000-$17,800)

Therefore Net Income will be $71,200

bi) Calculation for the operating cash flow by using dollars in minus dollars out method

Using this formula

Operating cash flow=Revenue-Cash expenses-Taxes

Let plug in the formula

Operating cash flow=$236,000-($69,000+$49,000)-$17,800

Operating cash flow=$236,000-$118,000-$17,800

Operating cash flow=$100,200

Therefore the operating cash flow by using dollars in minus dollars out method will be $100,200

bii) Calculation of the operating cash flow by using adjusted accounting profits,

Adjusted accounting profit=$71,200+$29,000

Adjusted accounting profits=$100,200

Therefore the operating cash flow by using adjusted accounting profits will be $100,200

biii)Calculate the operating cash flow by using after tax operating cash flow

After tax operating cash flow=[$236,000-($69,000+$49,000)]*(1-0.20)+(0.20*$29,000)

After tax operating cash flow=($236,000-$118,000)*0.80+$5,800

After tax operating cash flow=($118,000*0.80)+$5,800

After tax operating cash flow=$94,400+$5,800

After tax operating cash flow=$100,200

Therefore the operating cash flow by using after tax operating cash flow will be $100,200

4 0
2 years ago
Investments can help a business increase productivity by:
anyanavicka [17]

Answer:

c

Explanation:

when Offering the business more efficient ways to make and encourage the business can develop

3 0
3 years ago
Read 2 more answers
Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations.
elena-s [515]

Answer:

a. $131,880

b. $167,310

c. $156,050

d. $151,390

Explanation:

(a) Income from operations

Income from Operations is Income resulting from Primary Trading Activities of the Company.

Income from Operations = Gross Profit + Operating Income - Operating Expenses

where,

Gross Profit = Sales - Cost of Goods Sold

                    = $334,910 - $149,030

                    = $185,880

thus,

Income from Operations = $185,880 - $54,000 = $131,880

(b) Net income

Income resulting from Primary and Secondary Trading Activities of the the Company.

Net income = Income from Operations + Non Operating Income - Non Operating Expenses

                   = $131,880 + $32,710 + $9,080 - $6,360

                   = $167,310

(c) Comprehensive income

Income from both Continuing and Non - Continuing Activities.

Comprehensive income = Net income + Non - Continuing Activities

                                         = $167,310 - $11,260

                                         = $156,050

(d) Retained earnings balance at December 31, 2020

The Income remaining after distributions to shareholders have been made.

Retained earnings = Comprehensive income  - Dividends

                               = $156,050 - $4,660

                               = $151,390

8 0
3 years ago
What is the difference between a Chronological Resume and a Skills Resume? How are they similar, and how are they different?
erastovalidia [21]

A chronological resume lists your work experience in order of time, usually starting with the newest job and working your way backward. Skills resume lists the skills you have acquired from each job and groups them together. For instance, "leadership" may be a skill, so you would have a section entitled "Leadership" and then you would list all the leadership skills and tasks you have done.

These are similar because you will still list all your previous work history, skills, accomplishments, etc but the difference is in how you categorize and list them.

4 0
2 years ago
What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) Total manufacturing cost_____
Nastasia [14]

Answer:

$52,285

Explanation:

The computation of the total manufacturing cost assigned to Job P is shown below:-

Total manufacturing cost = Direct material + Direct labor + Manufacturing overhead applied

= $13,000 + $21,000 + (2,300 × $7.95)

= $13,000 + $21,000 + $18,285

= $52,285

Therefore for computing the total manufacturing cost assigned to Job P we simply applied the above formula.

6 0
2 years ago
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