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Westkost [7]
3 years ago
6

The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will

cost $28,000. If sales increase by $89,000, the company's net operating income will increase by:
Business
1 answer:
larisa [96]3 years ago
4 0

Answer:

$29,850

Explanation:

The computation of the increase in net operating income is shown below:

= Increase in sales - increase in variable expenses - advertising cost

where,

Increase in sales = $89,000

Increase in variable expenses is

= $89,000 × 35%

= $31,150

And, the advertising cost is $28,000

So, the increase in operating income is

= $89,000 - $31,150 - $28,000

= $29,850

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If a country imposes a tariff on imported shoes, we expect the domestic price of shoes to ______ .
boyakko [2]

If a country imposes a tariff on imported shoes, we expect the domestic price of shoes to rise, domestic consumption to fall, and domestic production to rise.

A levy on imported goods is known as a tariff. The use of an example is the simplest way to explain how it operates. The US lumber industry is the example we've used throughout this section, and it's continuing below. The domestic equilibrium price and quantity in the domestic market are $1,000 per board foot and 40 million board feet, respectively. PD = $1,000 and QD = 40,000,000 are used to represent this. The world price, or PW, in this instance is significantly less than the local price. While this is not always the case, if PW is higher than PD, there is no reason to import (This model assumes that imports are identical to domestic products in every respect except for price).

American customers will buy a lot more lumber if they can obtain imports for as little as $400. The number of units they will be demanded will rise to 70 million (40 million more than the domestic equilibrium). With the improved accessibility to inexpensive lumber, these consumers are vastly better off.

The imports, on the other hand, cause domestic producers to lose a significant amount of surplus. Previously, they could have provided 40 million board feet of lumber for $1,000, but now they can only provide 10 million. This is due to the fact that many domestic companies will either exit the market or reduce production since they can no longer compete with the foreign production.

60 million board feet of lumber are imported from Canada out of a total production of 70 million board feet, 10 million of which are produced domestically.

To lean more about Tariffs from the given link.

brainly.com/question/26923792

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3 0
1 year ago
A salesperson working for Broker A sells a $150,000 home listed with another brokerage. The listing commission is 6.5 percent of
Taya2010 [7]

Answer:

She is entitled to $3,217.5

Explanation:

First the amount the brokers and sales person are interested in is 6.5% of the selling price ($150,000). so calculating 6.5% of the selling price;

6.5% = 6.5/100 = 0.065

∴ 6.5% of $150,000 = 0.065 × 150,000 = $9,750

Next, we are interested in the cooperating broker (Broker A), who the sales person works for. Note that a cooperating broker is the broker who facilitates a real estate transaction, along with a listing broker who listed the property, and in this case the listing broker is Broker A, who the sales person works for.

We are told that the cooperating broker takes 60% of the listing commission ($9,750);

Therefore, 60% of $9,750 = 0.6 × 9,750 = $5,850

Next, we are also told that out of this amount, the sales person is responsible for 55% of the listing commission entering the cooperate broker's office;

Therefore, 55% of $5,850 = 0.55 × 5,850 = $3,217.5

Therefore the sales person is entitled to $3,217.5

8 0
3 years ago
If a $4,000 debit to Equipment in a journal entry is incorrectly posted to the ledger as a $4,000 credit and the ledger account
Dovator [93]

Answer:

The totals of Trial balance have a difference of $8,000. The credit balance totals of Trial balance is higher than the debit totals because the original entry of debit is mission and there is an wrong posing on the credit side which reduce the debit balance by $4,000 and Increase the credit balance by $4,000 at the same time. Net effect will be $8,000 in totals of trial balance.

4 0
2 years ago
When we say that a firm is a price taker, we are indicating that the Group of answer choices firm takes the price established in
Zina [86]

Answer:

firm can change output levels without having any significant effect on price.

Explanation:

In the case when we say that the firm is a price taker that means the firm has the power to change the level of an output but this does not have any kind of impact on the price. They accepted the price for the prevailing market and each unit could be sold at the similar market price. It could impact the market price also they enjoy the pricing power

Therefore the above statement should be considered

5 0
3 years ago
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal
lara [203]

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

(C) The price you will be willing to pay for the portfolio is $181,818.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

6 0
3 years ago
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