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3 years ago

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At a price $4 for good x, a firm is willing to supply 1,400 units of x. for a price of $5 for good x, the firm is willing to sup

ply 1,500 units x. the change in revenue for the firm when the price of the good rises from $4 to $5 is a:

1 answer:

KIM [24]3 years ago

7 0

100 unit difference

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Brutus' Fried Chicken patented the recipe for the spices used in the coating of the chicken. The patent protection lasts for 17

belka [17]

My answer: <span>b. opportunity during the time of the patent protection

Patent protection may also be identified as a cost for doing business but there are a lot of costs that will be spent in doing business. Thus, patent protection of Brutus' Fried Chicken will be treated as opportunity during the time of the patent protection. This patent ensures that only Brutus' Fried Chicken can use of the said </span><span>recipe for the spices used in the coating of the chicken. They can litigate anyone who will infringe on their recipe. </span>

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3 years ago

True or False: If Kevin's Fire Engines were a competitive firm instead and $160,000 were the market price for an engine, decreas

Feliz [49]

Answer:

False

Explanation:

Kevin should not rise the level of production from 5 to 6 as the impact of the price dominates this situation

Also the market is not depend on the Kevin fire engines because of the competitive market

Plus the supply and demand relation is inverse and not depend on the change in price level in a competitive market

If the price is decreased from $160,000 to $120,000 so the quantity of the production would not be impacted

In addition to this, the total revenue could be impacted when there is a reduction in the price that produced more sale due to this there is a slightly change in upward and downward

Also the change would never be in the similar production as compare to the change in price

Therefore the given statement is false

8 0

3 years ago

Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued $65,000,000 of 10-year, 12% bonds a

Stolb23 [73]

Answer:

Rodgers Corporation

Journal Entries:

1. July 1, Year 1:

Debit Cash $73,100,469

Credit Bonds Payable $65,000,000

Credit Bonds Premium $8,100,469

To record the issuance of bonds at a premium.

2. a) December 31, Year 1:

Debit Interest Expense $3,494,976.55

Debit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the first semi-annual interest payment, including amortization.

b) June 30, Year 2:

Debit Interest Expense $3,494,976.55

Credit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the second semi-annual interest payment, including amortization.

3. The total interest expense for Year 1 is $3,494,976.55

4. Yes. The bonds are issued at a premium. So the bond proceeds will always be greater than the face amount, and the contract rate (coupon rate) will always be greater than the market (effective) rate.

5. The price of $73,100,469 received for the bonds by using the present value tables is $1,124.62 ($73,100,469/65,000) per $1,000.

Explanation:

a) Data and Calculations:

Face value of bonds issued = $65,000,000

Price received from the issue $73,100,469

Premium received = $8,100,469

Period of maturity = 10 years

Coupon interest rate = 12%

Market (effective) interest rate = 10%

Payment of interest = semiannually on December 31 and June 30

Analysis of Journal Entries:

1. July 1, Year 1:

Cash $73,100,469 Bonds Payable $65,000,000 Bonds Premium $8,100,469

2. a) December 31, Year 1:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

b) June 30, Year 2:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

N (# of periods) 20

I/Y (Interest per year) 10

PMT (Periodic Payment) 3900000

FV (Future Value) 65000000

Results

PV = $73,100,439

Sum of all periodic payments = $78,000,000.00

Total Interest $69,899,569

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3 years ago

Which of the following financial packages has the lowest total cost to the student?

Bezzdna [24]

A. Because grants and scholarships are free money and loans have to be repaid. 25% is the lowest amount of loans

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4 years ago

Read 2 more answers

Jasper Company provided the following information for last year:

sdas [7]

Answer:

Explanation:

1. Jasper Company

Income Statement

Sales (280000 x $12) $3360000

<u>Less: Cost of goods sold</u>

Add: Direct Material $180000

Add: Direct Labor $505000

Add: Manufacturing Overhead <u>$110000</u>

Cost of goods sold <u>($795000)</u>

Gross Profit $ 2565000

<u>Less: Expenses</u>

Selling expense $437000

Administrative expense <u>$854000</u>

Total expenses <u>($1291000)</u>

Net income <u> $1274000</u>

Percentage of sales for each line item

Sales = 100%

Cost of goods sold: $\frac{795000}{3360000}$ x 100= 23.7%

Selling expense : $\frac{437000}{3360000}$ x 100 = 13%

Administrative expense: $\frac{854000}{3360000}$ x 100 = 25.4 %

2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.

Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.

7 0

3 years ago