Answer:
The budgeted production of the units for the month of July are 5,175 units
Explanation:
The budgeted production of the units for the month of July is computed as:
Budgeted production units for July = July units + 25% of August units - Ending inventory of June
where
July units is 5,000 units
August units is 5,700
So, 25% will be:
= 5,700 × 25%
= 1,425
Ending inventory of June is 1,250 units
So, putting the units above:
Budgeted production units for July = 5,000 units + 1,425 units - 1,250 units
Budgeted production units for July = 6,425 units - 1,250 units
Budgeted production units for July = 5,175
Answer:
a. True
Explanation:
from the CAPM formula we can derive the statemeent as true.
risk free = 0.05
market rate = 0.12
premium market = (market rate - risk free) 0.07
beta(non diversifiable risk) = 0
Ke 0.05000
As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility
Answer: Option (C) is correct.
Explanation:
In a competitive market conditions, there are large number of buyers and sellers. All the firms in this market condition are selling identical products or we can say that all the goods are perfect substitutes.
Suppose if the firms earning negative economic profit then they continue to operate until the price of their goods is greater than the average variable cost and they shut down their production if the price of their goods is lower than the average variable cost.
A firm can experience normal profit, loss or supernormal in the short run.
But competitive firms cannot decreases their output to minimizes their losses.
Answer:
Given marginal costs and benefit
for firm A: MC=150+3Q
for firm B: MC=10+9Q
Marginal Benefit: MB=250-4Q
Socially optimal level of each firms pollution reduction
MC=MB
150+3Q=250-4Q
7Q=100
Q=14.3
for firm B
10+9Q = 250-4Q
13Q=240
Q=18.5
HERE THE THREE SCENARIOS
1) iF BOTH FIRMS ARE REQUIRED TO REDUCE POLLUTION BY THE SAME AMOUNT THEN
Total surplus is equal to total benefit minus total cost. The total benefit is equal to the area under the marginal benefit curve
The same total reduction could be achieved by requiring each firm to reduce pollution by 25.6 units. This would be less efficient than the social optimum since it would be less costly for firm B to reduce pollution by more and for firm A to reduce pollution by less
2)A common tax could be used to achieve the social optimum. Setting a tax of 250-4Q would lead firm A (respectively, B) to reduce pollution to the point where MC A = 250-4Q (respectively MC B = 250-4Q). Solving gives Q A = 14.3 and Q B = 18.5
3)POLLUTION PERMITS LEADS TO PROBLEM OF INTERNALIZATION
Requiring both firms to reduce pollution by 25.6 units but allowing them to trade pollution permits can also be used to achieve the social optimum.
Answer:
Explanation:
The preparation of the post-closing trial balance is presented below:
Hilltoppers Corporation
Post-closing trial balance
Particulars Debit Credit
Service revenue $14,600
Cash $3,600
Accounts Payable $1,600
Utilities expense $2,600
Salaries expense $9,600
Equipment $15,600
Common stock $12,000
Retained earnings $4,400
Dividend $1,200
Total $32,600 $32,600