What are the two types of state budgets?

Assuming the Coase theorem applies, an efficient allocation of a resource will result ... A. only if the government acts to inte

Mamont248 [21]

Answer:

B. through negotiations between the parties involved.

Explanation:

correct answer is through negotiations between the parties involved because According to Coase theory, priority rights are best defined by negotiation between the parties involved and there is no transaction cost in negotiations.

The Coase theory states that when transaction costs are low, both parties can negotiate and reach an effective outcome in the presence of an outsider.

6 0

3 years ago

Bold Stapler Sales Company (BSS) began 2019 with cash of $80,000, inventory of $7,200 (400 staplers that cost $18 each), $2,000

viva [34]

Answer:

Bold Stapler Sales Company (BSS)

FIFO LIFO Weighted Average

Ending inventory $4,500 $3,240 $4,122

Cost of goods sold $96,300 $97,560 $96,678

Explanation:

a) Data and Calculations:

Beginning balances in 2019:

Cash $80,000

Inventory $7,200

Common stock $2,000

Retained earnings $2,000

Description Units Unit Cost Total

Beginning inventory 400 $18 $7,200

The first purchase 1,600 $21 33,600

The second purchase 2,400 $25 60,000

Goods available 4,400 $100,800

Sales of units (4,220) $45 $189,900

Ending inventory 180

FIFO:

Ending inventory = $4,500 ($25 * 180)

Cost of goods sold = $96,300 ($100,800 - $4,500)

LIFO:

Ending inventory = $3,240 ($18 * 180)

Cost of goods sold = $97,560 ($100,800 - $3,240)

Weighted Average:

Weighted average cost per unit = $22.91 ($100,800/4,400)

Ending inventory = $4,122 (22.91 * 180)

Cost of goods sold = $96,678 ($100,800 - $4,122)

8 0

3 years ago

International Imports is a merchandising Firm. Last year they reported sales of $674,500 and cost of goods sold of $404,700. The

dimaraw [331]

Answer:

The total contribution margin for the firm is: $209,095

Explanation:

The contribution margin is calculated by using following formula:

Contribution margin = Total sales – Total variable costs

In International Imports,

Total sales = $674,500

Total variable costs = cost of goods sold + total variable selling and administrative expense = $404,700 + $60,705 = $465,405

Contribution margin = $674,500 - $465,405 = $209,095

7 0

3 years ago

Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four-year life and a $2,400 s

maria [59]

Answer:

1. Book value at end of year 2 = $13,130

2. Depreciation from year 3 for last 3 years = $3,710 each year, that is $11,130 for three years.

Explanation:

As for the provided details, we have:

Cost of machinery = $23,860

Expected life = 4 years

Salvage value = $2,400

Straight line depreciation = $\frac{23,860 - 2,400}{4} = 5,365$

Under straight line method depreciation remains constant for life of asset.

Book value at end of year 2 = $23,860 - ($5,365 $\times$ 2) = $13,130

Thereafter in the beginning of year 3 the estimate is made to realize that the total remaining life expected is 3 years, with salvage value $2,000

Thus, depreciation from year 3 = $\frac{13,130 - 2,000}{3} = 3,710$

Therefore, depreciation from year 3 to year 5 = $3,710 each year.

Total depreciation of last 3 years = $3,710 $\times$ 3 = $11,130

3 0

3 years ago

The beta of Stock A is –0.4 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is

Marianna [84]

Answer:

=2.98%

Explanation:

Use CAPM to find the required return of the stock;

CAPM: r = risk free + beta(market return - risk free)

risk free = 4.5% or 0.045 as a decimal

beta = -0.4

market return = 8.3% or 0.083 as a decimal

Next, plug in the numbers into the CAPM formula;

r = 0.045 -0.4(0.083 - 0.045)

r = 0.045 -0.0152

r = 0.0298 or 2.98%

Therefore the required return is 2.98%

4 0

3 years ago