Which of the following is the number of people receiving Social Security payments? 55 million 58 million 66 million 71 million

Omega Company reported the following information for the company's two products: Product X Product Y Selling price per unit $ 35

Elena L [17]

Answer:

Omega Company

B) Product Y should be produced because it will produce greater total profit.

Explanation:

If only Product X is produced, the total profit it will produced is:

Selling price = $35

Variable Cost = $20

Contribution = $15

Total Contribution = $15 x 75,000/4 = $281,250

If only Product Y is produced, the total profit will be:

Selling price = $25

Variable cost = $15

Contribution = $10

Total Contribution = $10 x 75,000/2 = $375,000

Product Y therefore produces a greater total profit. This is because the fixed cost will remain the same if there are no avoidable elements.

5 0

3 years ago

Read 2 more answers

You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows.

Firlakuza [10]

Answer:

A.- DECREASE

B.- DECREASE

C.- INCREASE

D.- INCREASE

E.- INCREASE

Explanation:

a. The discount rate increases

DECREASE the discoutn factors will be higher therefore, the present values lower.

b. The cash flows are in the form of a deferred annuity, and the total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000

DECREASE Because the cashflow is generate on a longer period there is more exposure to discount rates.

c. The discount rate decreases

INCREASE The discount factor are lower. This situation is the opposite as (a)

d. The riskiness of the investment's cash flows <u>decreases</u>

INCREASE a lower risk derivates in lower cost of capital thus, lower iscount rates. This increase the present value of the cashflow.

e. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.

INCREASE as most of the future cash flows are at the beginning they have less exposure to time value of money.

4 0

3 years ago

A corporation purchased manufacturing equipment for $100,000, with an estimated useful life of 10 years and a salvage value of $

bulgar [2K]

Answer:

The second year’s depreciation for this equipment using the straight line method is 8,500

Explanation:

Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.

The formula to compute the depreciation under straight lie method is shown below:

= $\dfrac{(original\ cost - salvage\ value)}{useful\ life}$

= $= \dfrac{(\$100,000 - \$15,000)}{10}$

= $8,500

The depreciation amount under straight line method should remain same over the estimated useful life

So, the second year’s depreciation for this equipment is $8,500

6 0

3 years ago

Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 2222 years or as

Wewaii [24]

Answer:

0 i.e. zero

Explanation:

The formula we will us to calculate the cash option payout for formula for calculating the present value (PV) .

Present value (PV) can simply be described as the current value of a future amount or future stream of cash flows given a certain return rate.

To calculate the PV of a future cash flow, we will discount it by using the discount rate.

The formula is provided as follows:

PV = FV/(1 + r)^n ............................................ (1)

Where,

PV = Present Value = ?

r = discount rate = 66% = 0.66

FV = annual future value = $863,636.36

n = number of years = 2222 years

Note that the annual future value calculated by diving the $1919 million by 2222 years and this give us $863,636.36 (i.e. 1,919,000,000 ÷ 2222 = $863,636.36).

Substituting the figures above into equation (1), we obtain:

PV = 863,636.36/(1 + 0.66)^2222

= 863,636.36/(1.66)^2222

= 863,636.36/∞

PV = 0

This is because, the division of any number by infinity is equal to zero. And if we multiply by zero by 2222, it will still give us zero PV.

Therefore, the cash option payout will be zero. It is better the winner take the option of collecting $863,636.36.

5 0

3 years ago

For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following s

Charra [1.4K]

Answer:

b.The good is a necessity

Explanation:

The price elasticity of demand = percentage change in quantity demanded/ percentage change in price

3% / 12% = 0.25

When the coefficient of elasticity is less than one, demand is inelastic.

Inelastic demand means that when price increases, there is little or no change in quantity demanded.

Necessity goods are goods that are very important to consumers and thus they tend to have an inelastic demand. For example, medications.

Substitute goods are goods that can be used in place of another good because of their similarity. E.g. butter and margarine

Goods with many substitutes have an elastic demand. If price of a good increases, consumers can easily shift consumption to substitute goods.

Narrowly defined goods have an elastic demand because it is easier to find subsituites for such goods.

Demand is more elastic in the long run because consumers have more time to search for substitutes.

I hope my answer helps you

3 0

3 years ago