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2 years ago

15

When calculating price elasticity of demand, if the percentage change in price is negative, then the percentage change in quanti

ty demanded is typically: greater than one. positive. less than one. negative.

1 answer:

serious [3.7K]2 years ago

8 0

Answer:

Less than one

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The following events took place at a manufacturing company for the current year:

PilotLPTM [1.2K]

Answer: $25,369.50

Explanation:

GIVEN THE FOLLOWING :

Purchased direct material = $97,000

(2) Incurred labor costs as follows: (a) direct, $58,000 and (b) indirect, $15,600.

(3) Other manufacturing overhead was $109,000, excluding indirect labor.

(4) Transferred 80% of the materials to the manufacturing assembly line.

(5) Completed 65% of the Work-in-Process during the year.

(6) Sold 85% of the completed goods.

(7) There were no beginning inventories.

Ending work in process inventory is calculated by;

(Beginning inventory + 0.8(direct material purchased) + direct Labor + (indirect labor + other manufacturing overhead)) × percentage Work in process

($0 + (0.8×97000) + 58000 + (15600+109000))×0.65

=($0 + $77,600 + $58,000 + 124600)×0.65 = $169,130

Ending WIP Inventory = (100-85)% × $169,130

0.15 × $169,130 = $25,369.50

6 0

3 years ago

The firm's tax rate is 34 percent. The firm's pre-tax cost of debt is 8 percent; the firm's debt-to-equity ratio is 3; the risk-

MAVERICK [17]

Answer:

WACC = 0.08085 or 8.085% rounded off to 8.09%

Option c is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component
D, P and E represents debt, preferred stock and common equity respectively
r represents the cost of each component

We first need to calculate the weight of each stock. We know the basic accounting equation is,

Assets = Debt + Equity

We know the debt to equity ratio is 3. Then total assets will be,

Assets = 3 + 1

Assets = 4

Using the CAPM equation, we can calculate the cost of equity.

r = risk free rate + Beta * Market risk premium

r = 0.03 + 1.5 * 0.09

r = 0.165 or 16.5%

WACC = 3/4 * 0.08 * (1 - 0.34) + 1/4 * 0.165

WACC = 0.08085 or 8.085% rounded off to 8.09%

4 0

2 years ago

In the Challenge Solution, would it make a difference to the analysis whether the lump-sum costs such as registration fees are

Assoli18 [71]

Answer:

The answer is "nothing changes because the fees would still be fixed costs."

Explanation:

When annual expenses throughout the cash payment are recovered, a long-term delivery curve of both the company will change.

When the lump sum costs are still only obtained once, the long-term supply curve shall be changed.

It is because, regardless of how it is paid, this tv license has little effect mostly on low cost but only a fixed cost. Its amount of output relies on how well the cost of the profit changes. Provided these are fixed costs, their performance doesn't matter.

5 0

2 years ago

Hunter Manufacturing Inc.'s December 31, 2014 balance sheet showed total common equity of $2,050,000 and 190,000 shares of stock

Nesterboy [21]

Answer:

11.57 is the book value per share.

Explanation:

Given: Total common equity= $2050000.

Total number of outstanding shares= 190000

Net Income= $250000

Dividend paid out= $100000.

We know the formula for finding book value per share at 12/31/2015.

Book value per share= $\frac{(Total\ equity+ Accumulated\ earnings)}{ number\ of\ outstanding\ shares}$

First, lets find out accumulated earning.

Accumulated earning= $Net\ income- Dividend\ paid$

Accumulated earning= $\$ 250000 - \$ 100000= \$ 150000$

∴Accumulated earning= $ 150000.

Now, Book value per share= $\frac{\$ 2,050,000+ \$ 150000 }{\$ 190000}$

⇒ Book value per share= $\frac{2200000}{190000} = \$ 11.57$

∴ Book value per share= $11.57.

8 0

3 years ago

Sprintfuel, an energy drink manufacturing company, spiked all its energy drinks with banned substances and did not include their

koban [17]

Here are the choices:

discretionary responsibility
political responsibility
economic responsibility
legal responsibility

The correct answer is "legal responsibility"

5 0

2 years ago

Read 2 more answers