_____________ tends to discourage firms from making physical capital investments.

Ana, a project manager, has been asked to estimate the cost of the project. She wants that cost estimate for the project to be a

satela [25.4K]

Answer:

v

Explanation:

3 0

3 years ago

Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's

iris [78.8K]

Answer: $651,000

Explanation:

From the above question, Apple's iPod carries a two-year warranty against manufacturer's defects.

warranty costs are expected to be approximately 3% of sales.

Total sales are $30.7 million, and actual warranty expenditures are $270,000.

Total warranty cost = $30.7 million x 3% = $921,000

During the 1st year only $270,000 of warranty expenses was made.

Therefore the company will carry as liability at the end of the year a total of $921,000 - $270,000 = $651,000

3 0

3 years ago

Tom walks bethany's dog once a day for $50 per week. bethany values this service at $60 per week, while the opportunity cost of

s344n2d4d5 [400]

The total surplus is A. $30.

The surplus is the amount of money that is let over after all requirements have been met/paid. This can also be an excess amount of production that is over the amount of money demanded. The opportunity cost is $30, which is what Tom values his time being worth that he is not getting due to dog walking.

5 0

3 years ago

Nataraj (2007) finds that a 100100% increase in the price of water for heavy users in Santa Cruz caused the quantity of water

kakasveta [241]

Answer:

In percentage terms It wil lbe an increase of 60%

Explanation:

We will calculate as follow:

currently the revenue is 1.55

if the price goes up to 3.10 the demand falls by 20%

so we are reducing sales revenue by 20%

3.10 x ( 1 - 20%) = 3.10 x 0.8 = 2.48

Now we can calculate the percent of change in the water expenditure:

2.48/1.55 - 1 = 0.60

In percentage terms It wil lbe an increase of 60%

4 0

3 years ago

Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large televisio

photoshop1234 [79]

Answer:

Effect on income= (2,400,000)

Explanation:

Giving the following information:

Current selling price= $380

New selling price= $360

Unitary cost= $320

Units sold= 150,000*1.1= 165,000

<u>We need to calculate the effect on income:</u>

Effect on income= contribution margin new sales - contribution margin old sales

Effect on income= 15,000*(360 - 320) - 150,000*(380-360)

Effect on income= (2,400,000)

<u>Prove:</u>

New income= 165,000*40= 6,600,000

Actual income= 150,000*(380-320)= 9,000,000

Difference= (2,400,000)

5 0

3 years ago