Answer:
Option (d) is correct.
Explanation:
If there is an increase in the income taxes then as a result there is a leftward shift in the labor supply curve and we know that labor supply curve indicates the the amount of labor hours workers devoted towards the production of the goods. Hence, this will lead to a reduction in the real GDP as there will be less working hours devoted by the workers because of the higher income taxes.
Answer:
The junk-food ban will reduce the quantity of junk food sold and raise the price. The education program will reduce the quantity of junk food sold and lower the price
Explanation:
Answer:
Sales 3,575,000
Variable Manufacturing 1,567,500
Fixed Manufacturing <u> 247,500</u>
COGS: 1,815,000
gross profit 1,760,000
Variable S&A expense 302,500
Fixed S&A expense <u> 191,250 </u>
Net Income 1,266,250
Explanation:
Absorption cost will consider unit cost only the manufacturing department cost the rest are period cost.
We solve for the fixed overhead per unit using produced units:
Fixed overhead $382,500 / 85,000 = 4.5
Then we add it to the variable cost of 28.5 and get a unit cost of $33
Wer multiply by the 55,000 units to get COGS
the rest will be period cost.
Answer:
Total= $292,520
Explanation:
Giving the following information:
Zhang Industries sells a product for $750. Unit sales for May were 400 and each month's sales are expected to grow by 3%. Zhang pays a sales manager a monthly salary of $4,000 and a commission of 2% of sales in dollars. Assume 30% of Zhang's sales are for cash. The remaining 70% are credit sales; these customers pay in the month following the sale.
Cash budget for June:
Sales= [(400*1.03)*750]*0.3= 92,700
Sales from May= (400*750)*0.7= 210,000
Salary= (4,000)
Commision= [(400*1.03)*750]*0.02= (6,180)
Total= $292,520
Answer:
in this problem, we need to calculate Gomez's accounting and economic profit. To do this, let us first classify and list the explicit and implicit costs. Revenue: Sales: $85,000 Explicit costs: Cost of one helper: $18,000 Rent: $8,000 Materials: $24,000 These are the costs that require an outlay of cash. Implicit costs: Opportunity cost of funds invested in equipment: $7,000 Gomez could have invested the funds in another asset that could earn him $7,000 Opportunity cost of working as a potter in his own shop: $20,000 Gomez could have worked as a potter for a competitor that could earn him $20,000. This is the worth of Gomez's skill as a potter. Entrepreneurial talent: $4,000 This is the worth of Gomez's talent in running the business. These costs do not require an outlay of cash. These are the implicit costs. Now, we are ready to calculate both the accounting and economic profit of Gomez. a. Calculate the accounting profit for Gomez's pottery firm. $_ Accounting profit = Total Revenue − Total Explicit Costs Accounting profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 ) Accounting profit = $ 85 , 000 − $ 50 , 000 Accounting profit = $ 35 , 000 The accounting profit is equal to $35,000. b. Now calculate Gomez's economic profit. $_ Economic profit = Total Revenue − Total Explicit and Implicit Costs Economic profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 + $ 7 , 000 + $ 20 , 000 + $ 4 , 000 ) Economic profit = $ 85 , 000 − $ 81 , 000 Economic profit = $ 4 , 000 The economic profit is equal to $4,000.
