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3 years ago

If demand shifts to the right when income increases, we can conclude that the good is:_____

Business

1 answer:

11111nata11111 [884]3 years ago

7 0

Answer:

A normal good

Explanation:

Normal goods are goods that are demanded as income level rises. With a higher income level, a rational consumer is expected to have more purchasing power and demand more of a good that is considered normal (hence the name).

Goods that are demanded less as income rises are termed inferior goods. They are the direct opposite of normal goods.

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According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipm

alexandr1967 [171]

Answer:

Times Interest earned:

2013 16.47

2012 49.02

2.- Yes it is suffficient as it is earnings above 10 times their interest

Explanation:

December 31, 2013.2013 2012 Sales Revenue $ 118,000 $ 147,000 Cost of Goods Sold 69,000 78,700 Gross Profit 49,000 $ 68,300 Selling, General, and Administrative Expenses 37,800 40,600 Interest Expense 680 565 Income before Income Tax Expense 10,520 27,135 Income Tax Expense 2,500 6,800 Net Income $ 8,020 $ 20,335

year 2013

Income before taxes: 10,520 + interest expense 680 =

interest before interest and taxes = 11,200

times interest earnings:

11,200/680 = 16.47

year 2012

Income before taxes: 27,135 + interest expense 565 =

interest before interest and taxes = 27,700

times interest earnings:

27,700/565 = 49.02

5 0

3 years ago

CCC Corp has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.00% versus a required

Oxana [17]

Answer:

CCC's new required return be 16.5%

Explanation:

For computing the new required return, first, we have to compute the risk-free rate of return which is shown below:

Expected return = Risk- free rate of return + Beta × (Market risk - Risk- free rate of return)

12% = Risk- free rate of return + 1.5 × (10% - Risk- free rate of return))

12% = Risk- free rate of return + 15% - 1.5% Risk- free rate of return

So, the Risk- free rate of return is 6%

Now the average stock is increased by 30%

So, the new market risk is 13% and other things will remain constant

So, the new required return equal to

= 6% + 1.5 × (13% - 6%)

= 6% + 1.5 × 7

= 16.5%

8 0

3 years ago

Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Rig

NemiM [27]

Answer:

Explanation:

a. Parties who legally own the company

The kind of corporation that is owned by the shareholders is a stock insurer. While when policy holders elect board of directors then that is call a mutual insurer. This board of director enjoys control over the management control of the corporation.

b. Right to assess policyholders additional premiums

An asses sable policy can not be issued by the stock insurers, however policy of such kind can be issued by the mutual insurer. For mutual insurer, this policy depends on what kind of insurer is in place.

c. Right of policyholders to elect the board of directors

For stock insurer, its is the stockholders who elect the board of directors. While for mutual insurer, its the owners who elect the board of directors who have an effective control over the management.

5 0

3 years ago

GPB's contribution margin ratio is 85% ( or .85) and its fixed monthly expenses are $63,000. Assume that the cost structure of G

KIM [24]

Answer:

Net income= $24,550

Explanation:

The contribution margin ratio is the result of deducting from sales all the variable costs, expressed as a percentage.

First, we need to calculate the total contribution margin:

Total contribution margin= sales*contribution margin ratio

Total contribution margin= 103,000*0.85

Total contribution margin= $87,550

Now, the net income:

Net income= 87,550 - 63,000

Net income= $24,550

7 0

3 years ago

Mike is saving his emergency funds in an IRA account. Is his strategy a good one? Select the best answer from the choices provid

alexandr402 [8]

The answer to your question is:

- A. Yes, because IRAs have tax advantages over regular bank accounts.

4 0

2 years ago