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3 years ago

Suppose that the demand and price for a wrist watch are related by the following equation:

Business

1 answer:

Natasha2012 [34]3 years ago

4 0

Answer:

a. $28

b. $19

c. 800 watches

Explanation:

The equation is

p = D(q) = 28 - 2.25

The equation of the demand would be

P = 28 - 2.25q

a. The price would be

= $28 - 2.25 × 0

= $28 - 0

= $28

b. The price would be

= $28 - 2.25 × 4

= $28 - 9

= $19

The quantity demanded is come in hundreds so we take only 4

c. The quantity woul dbe

$10 = $28 - 2.25q

$10 - $28 = -$2.25q

-$18 = -$2.25q

So q would be

= 800 watches

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Beech Manufacturing makes expanded and is now making two products: Standard and Deluxe. Each Standard model takes 1.5 machine ho

Talja [164]

Answer:

Beech Manufacturing

The utilities flexible budget for July is:

= $1,225

Explanation:

a) Data and Calculations:

Utility rate per machine hour = $0.35

Standard Deluxe Total

Predicted production 1,100 770 1,870

Expected machine hours 1,650 3,080 4,730

Units produced 1,200 850 2,050

Standard machine hour/unit 1.5 2

Budgeted machine hours

(flexible budget) 1,800 1,700 3,500

Actual machine hours used 3,400

Utilities Static Budget = $1,655.50 (4,730 * $0.35)

Utilities Flexible Budget = $1,225 (3,500 * $0.35)

Utilities Actual Budget = $1,190 (3,400 * $0.35)

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3 years ago

Chisholm Associates uses the indirect method to prepare the operating activities section of the statement of cash flows. The fol

Kobotan [32]

Answer:

$58100

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in an asset other than cash is an outflow of cash while an increase in liabilities is an inflow of cash. A decrease in an asset other than cash is an inflow of cash while an decrease in liabilities is an outflow of cash.

Change in

Accounts receivable = $ 42,550 - $ 32,100=

= $10450 (Asset)

Prepaid insurance = 3,550 - 6,700

= -$3150 (Asset)

Accounts payable = 28,350 - 26,100

= $2250 (liability)

Unearned revenue = 6,350 - 8,500

= -$2150 (liability)

The net cash flows from operating activities

= $65,500 - $10450 + $3150 - $2250 + $2150

= $58100

7 0

4 years ago

The

zhenek [66]

Answer: operating budget

Explanation:

In the given scenario in the question, we can deduce that the management is in the process of planning the operating budget of the company.

The operating budget simply refers to the money that's needed by the company for it to run efficiently. It is made up of the manufacturing costs, sales budget, selling expenses, and the administrative expenses.

4 0

3 years ago

What is consumer demand?

VladimirAG [237]

The correct answer is A!

3 0

3 years ago

Read 2 more answers

The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $56

myrzilka [38]

Answer:

NPV of Plan A: $15,669,953.

NPV of Plan B: $18.260,647.

For the Plan A, the IRR is r=0.15.

For the Plan B, the IRR is r=0.32.

Explanation:

We have two expansion plans:

Plan A:

- Expenditure: -$56 million

- Cash flow: $9 million/year

- Duration: 20 years

Plan B:

- Expenditure: -$12 million

- Cash flow: $3.8 million/year

- Duration: 20 years

The NPV of plan A can be expressed as:

$NPV_A=-I_0+\sum_{k=1}^{20} (CF_k)(1+i)^{-k}\\\\NPV_A=-I_0+(CF)[\frac{1-(1+i)^{-20}}{i}] \\\\NPV_A=-56+9*[\frac{1-(1.11)^{-20}}{0.11}]=-56+9*\frac{0.876}{0.11}=-56+9*7.963328117 \\\\NPV_A=-56+71.66995306= 15.669953$

NPV of Plan A: $15,669,953.

The NPV of plan B can be expressed as:

$NPV_B=-I_0+\sum_{k=1}^{20} (CF_k)(1+i)^{-k}\\\\NPV_B=-I_0+(CF)[\frac{1-(1+i)^{-20}}{i}] \\\\NPV_B=-12+3.8*[\frac{1-(1.11)^{-20}}{0.11}]=-12+3.8*\frac{0.876}{0.11}=-12+3.8*7.963328117\\\\NPV_B=-12+30.26064685=18.260647$

NPV of Plan B: $18.260,647.

To calculate the IRR, we have to clear the discount rate for NPV=0. We can not solve this analitically, but we can do it by iteration (guessing) or by graphing different NPV, with the discount rate as the independent variable.

For the Plan A, the IRR is r=0.15.

For the Plan B, the IRR is r=0.32.

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3 years ago