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user100 [1]
3 years ago
10

A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thou

sand smartphones per month. Anticipated sales are five hundred units per month. Which of these would occur during the first few months of sales?
1. Limited demand would increase the price.
2. Limited supply would increase the price.
3. Unlimited demand would decrease the price.
4. Unlimited supply would decrease the price.
Business
1 answer:
Oksanka [162]3 years ago
7 0

Answer:

2. Limited supply would increase the price

Explanation:

In the given case the vendor sells in advance four thousand units for $300. While the installed capacity of the factory being to produce 1000 smartphones every month.

Expected sales being 500 units per month.

During the first few months, since the seller has already successfully sold 4000 smartphone units, high demand for the smartphones is evident.

Since the supply is limited to 1000 units only in a month and the quantity demanded being more as is evident by 4000 units being pre sold, during the initial phase, this would create a high demand.

And since the supply is limited, the seller will have to increase the price as the demand is lot more.  

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In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal
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Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

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3 years ago
In a process called __________, a customer visits a store to touch, feel, and even discuss a product's features with a sales ass
Lerok [7]

Answer:

b. showrooming

Explanation:

Showrooming is when a shopper visits a store to check out a product but then may eventually purchases the product online if there is a better deal.

This occurs because, while many people still prefer seeing and touching the merchandise they buy, many items are available at lower prices through online vendors. As such, local stores essentially become showrooms for online shoppers.

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3 years ago
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3 0
2 years ago
Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four
tiny-mole [99]

Answer:

Total overhead assigned to each the 35mm camera $ 66,000

An Activity Rate for receiving   $8 per receiving order

Receiving costs for 35mm camera  $1600

An Activity Rate for packing $ 10 per packing order

Explanation:

Product Machine Hours Setups Receiving Orders Packing Orders

35mm         10,000             100           200                  400

Digital            10,000          250          800                  2000

Cost            $60,000        $40,000    $8,000           $24,000

Total Overhead Costs= $ 60,000 + $ 40,000 + $ 8000+ $ 24,000= $132,000

Total overhead assigned to each the 35mm camera=( Total Costs/Total Machine Hours) * 35mm camera machine hours

Total overhead assigned to each the 35mm camera= ($ 132,000/ 20,000)10,000= $ 66,000

An Activity Rate for receiving based on receiving orders= 8000/1000=  $8 per receiving order

Receiving costs for 35mm camera= 8 * 200= $1600

An Activity Rate for packing based on packing orders = 24000/ 2400= $ 10 per packing order

5 0
3 years ago
Your company is considering a new project that will require $10,000 of new equipment at the start of the project. The equipment
zmey [24]

Answer:

Estimate the present value of the tax benefits from depreciation:

D. $1,851

Explanation:

<em>Step 1: Determine annual depreciation</em>

A.D=(A.C-S.V)/N

where;

A.D=annual depreciation

A.C=acquisition cost

S.V=salvage value

N=useful life

In our case;

A.D=unknown, to be determined

A.C=$10,000

S.V=$3,000

N=5 years

replacing;

A.D={(10,000-3,000)/5}=7,000/5=$1,400

Annual depreciation=$1,400

<em>Step 2: Determine annual tax benefits</em>

Annual tax benefits=tax rate×annual depreciation

where;

tax rate=34%=34/100=0.34

annual depreciation=$1,400

replacing;

Annual tax benefits=0.34×1,400=$476

<em>Step 3: Determine present value of the annual tax benefits</em>

Year                  Future value                Present value

 1                          476                            476/{(1+0.09)^1}=436.70

 2                         476                            476/{(1+0.09)^2}=400.64

 3                         476                            476/{(1+0.09)^3}=367.56

 4                         476                            476/{(1+0.09)^4}=337.21

 5                         476                            476/{(1+0.09)^5}=309.37

Total present value of the tax benefits=436.70+400.64+367.56+337.21+309.37=$1,851.48

Estimate the present value of the tax benefits from depreciation=$1,851

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