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Brilliant_brown [7]
3 years ago
9

Tell whether the statement is TRUE or FALSE. Deregulation always leads to lower prices for the consumer.

Business
1 answer:
SVEN [57.7K]3 years ago
5 0
FALSE. Deregulation allows vendors or sellers to set individual prices with no regulation, therefore more likely to set higher rates.
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Falcon Co. produces a single product. Its normal selling price is $29 per unit. The variable costs are $15 per unit. Fixed costs
Elan Coil [88]

Answer:

$11,760

Explanation:

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income/profit.

Without the new offer

Profit = 5000($29 - $15) - $20,900

= $70,000 - $20,900

= $49,100

For the new order a variable selling cost of $2 per unit would be eliminated, the contribution of the order will be

= 1680($20 - $15 + $2)

= 1680 * $7

= $11,760

This is the differential effect on profit.

5 0
3 years ago
Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per
Olenka [21]

Answer:

Economic profit  = $40

Explanation:

given data

producing = 20 units

selling = $10 per unit

total fixed costs = $100

average variable cost = $3

output = 20 units

to find out

economic profit of this corporation

solution

we get here revenue that is express as

revenue = 20 units × $10

revenue = $200

and

now we get variable cost is here as

variable cost = 20 units × $3

variable cost = $60

and

now we get here total cost that is express as

total cost = Fixed cost + Variable cost     .............1

total cost = $100 + $60

total cost = $160

so now Economic profit will be

Economic profit =  Revenue - Total cost    ......................2

Economic profit = $200 - $160

Economic profit  = $40

3 0
4 years ago
Prepare journal entries to record the following four separate issuances of stock.
hram777 [196]

Explanation:

  • A.

                                                                    Debit            Credit

Cash                                                         $84,000

Common stock                                                                 $70,000

Paid-In Capital in Excess of Par Value                             $14,000

It's necessary to split the equity in two accounts because there is information about the par value

  • B.

Promotion Expenses                                $49,000

Common Stock                                                                  $3,500

Paid-In Capital in Excess of Par Value                             $45,500

It's necessary to split the equity in two accounts because there is information about the par value

  • C

Promotion Expensese                               $49,000

Common Stock                                                                   $49,000

It's not necessary to split the equity in two accounts because there is no information about the par value

  • D.

Cash                                                            $136,500

Preferred Stock                                                                   $87,500

Paid-In Capital in Excess of Par Value                                $49,000

It's necessary to split the equity in two accounts because there is information about the par value

5 0
4 years ago
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.82 percent, a par value of $2,000 pe
balu736 [363]

Answer:

3.1781

Explanation:

here you go. I hope thats correct.

3 0
3 years ago
Congress passed a law allowing widespread oil exploration on federal lands in the western United States. A large deposit of oil
Strike441 [17]

Answer: D. The state law violates the principles of intergovernmental immunity as applied to the manager

Explanation:

Based on the information given, the manager's best defense against the imposition of the fine is that the state law violates the principles of intergovernmental immunity as applied to the manager.

We should note that unless Congress agrees to a particular regulation, the state doesn't have the power to regulate federal government activities and therefore cannot interfere with federal functions. Therefore, the regulation in this case isn't applicable to the manager.

5 0
3 years ago
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