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3 years ago

According to the law of demand, assuming other factors are held constant

Business

1 answer:

ohaa [14]3 years ago

5 0

Answer:

a. As the price of milk decreases, the quantity of milk demanded will increase.

Explanation:

According to the law of demand, if the price of a commodity is increasing than the quantity demanded of a commodity is decreased, and if the price of a commodity is decrease than the quantity demanded of a commodity is increased.

It means that it shows an inverse relationship between the price and the quantity demanded of a commodity.

In this, only two factors are changed, and the other factors are being constant

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Lakeside Inc. produces a product that currently sells for $57.60 per unit. Current production costs per unit include direct mate

Sidana [21]

Answer:

It is convenient to make the changes.

Explanation:

Giving the following information:

Selling price= $57.60 per unit.

Direct materials= $22

Direct labor= $24

Variable overhead= $11.00

Fixed overhead= $11.00.

New costs:

Direct material cost= 22*1.2= $26.4

Direct labor cost= 24*1.2= $28.8

<u>I suppose that the selling price will increase by $40.</u>

To determine whether the changes increase profit or not, we need to calculate the unitary contribution margin per unit for both options:

Contribution margin= selling price - unitary variable cost

Actual Contribution margin:

Contribution margin= 57.6 - (22 - 24 - 11)= 0.6

New contribution margin:

Contribution margin= 97.60 - (26.4 - 28.8 - 11)= $31.4

5 0

2 years ago

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

OverLord2011 [107]

Answer:

Equal to

Explanation:

Financial theory assumes that financial markets are efficient and that there is no information failure in conducting financial transactions. However, this is an assumption and there could, in some instances, be asymmetric information in the form of adverse selection and moral hazards. For example, if managers of a corporation know how well or how poorly their business is doing than stockholders (as organizational performance determines the price of a security), then there would be an information failure or informational inefficency. Also, a potential investor who cannot distinguish between a firm whose security has a high potential for profit and low risks compared to that with a low potential for profit and high risk will be willing to pay a price that lies between the value of stock from bad firms and the value of stock from good firms. This will not augur well for good firms as their stock is underpriced and they will be reluctant to sell.

When the financial market is efficient, investors of stock would be able to earn supernormal returns on their investments. It is therefore neccessary that the price of a corporation's common stock should be equal to the present value estimate of the firm's expected cash flows discounted by it appropriate rate of return.

6 0

3 years ago

Frictional unemployment is the result of Group of answer choices

Mrac [35]

Answer:

4. the normal process of jobs being created and destroyed.

Explanation:

Frictional unemployment is unemployment that is related to switching of jobs also called transitional unemployment. It occurs when workers leave jobs and get jobs as a result of normal labor tunover in a healthy economy.

In a growing economy frictional unemployment is the lowest type of employment bad there are abundant opportunities for workers.

Quitting a job is a voluntary type of frictional unemployment, while when an employee bis fired it is involuntary type of frictional unemployment.

8 0

3 years ago

In January, 2020, Harmony Inc. has the following expenditures related to manufacturing a new generation of widgets. Match each e

Ivan

Answer:

Harmony Inc.

Expenditure Appropriate accounting treatment

a. Machinery $550,000 B. Capitalize to the Machine

b. Machinery $33,000 B. Capitalize to the Machine

Research and development $95,000 D. Expense.

c. Freight-in (Machinery) $4,250 B. Capitalize to the Machine

d. Installation, etc (Machinery) $16,500 B. Capitalize to the Machine

e. Prepaid Insurance $3,000 A. Capitalize to a different asset account.

Explanation:

1) Data and Analysis:

a. Machinery $550,000 Accounts payable $550,000

b. Machinery $33,000 Sales Tax Expense $33,000

Research and development $95,000 Cash $95,000

c. Freight-in (Machinery) $4,250 Accounts payable $4,250

d. Installation (Machinery) $16,500 Cash $16,500

e. Prepaid Insurance $3,000 Cash $3,000

b) The correct approach in capitalizing fixed assets and related costs is to follow this procedure: capitalize freight, sales tax, transportation, and installation, in addition to the fixed asset purchase cost.

7 0

2 years ago

A. calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 15-year annuity i

Leokris [45]

<span>The first step is to multiply the present value by the interest rate. Since the present value is $1.6 million and the interest rate is 10%, this yields. $160,000. This product is then divided by 1 - (1 + the rate)^-term. So it is divided by 1 - (1.1)^-15. That is, the annual payment = $160,000/[1 - 1.1^-15] = $160,000/.760607951= $210,358.04</span>

3 0

3 years ago