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3 years ago

True or False: An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.

Business

2 answers:

blagie [28]3 years ago

8 0

Answer:

The statement is False

Explanation:

Generally speaking, the statement is false considering the demand and supply curve. In this curve, when there is increase in demand, its implies that the consumers of the notebook still derived satisfaction on it and as such the producer of the notebook produces more and supply to the market will increase so that equilibrium point will be achieved. Until when law of diminishing return set in, and the people are not deriving satisfaction again, that is when the product may not be readily available.

Again if the supply curve is vertical, that is the producer is producing and supplying at fixed rate without putting into consideration the demands in the market, there will not be corresponding increase in supply with demands which can make statement to true.

Natasha2012 [34]3 years ago

4 0

Answer:

False

Explanation:

An increase in the demand for notebooks raises the quantity of notebooks demanded and also the quantity supplied

An increase in demand leads to a corresponding increase in supply

If the supply is not raised which will also increase the quantity of notebooks supplied, there will not be enough notebooks to meet the high demand for notebooks which brought about an increase in the quantity of notebooks demanded

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Given the data below for production equipment,Initial Cost, P = $50,000 Salvage Value at the end of 5 years, S = $10,000. Deprec

Taya2010 [7]

Answer:

1. B. $8,000

2. C. $7,200

Explanation:

Units or production (UOP) method of depreciation bases the depreciation expense of a machine or equipment on how much it is actually used during the period.

depreciable value = $50,000 - $10,000 = $40,000

depreciation rate per unit = $40,000 / 25,000 = $1.60

Year Projected Production units Actual Production units

1 4,500 5,000

2 5,000 4,000

3 3,500 3,000

4 5,500 5,000

5 6,500 Not known

Total 25,000

depreciation expense year 4 = $1.60 x 5,000 = $8,000

accumulated depreciation year 4 = $1.60 x 17,000 = $27,200

book value = $50,000 - $27,200 = $22,800

if sold at $30,000, gain resulting from sale = $30,000 - $22,800 = $7,200

7 0

3 years ago

Greyon spinning Mills Inc. owns 600 spinning machines out of these, only 500 are used in a given year. Given this information, t

andre [41]

Answer:

B.0.83

Explanation:

Data provided in the question

Total machines Available = 600

Number of machines used in a given year = 500

So by considering the above information, the utilization of spinning machines is

Utilization = Resource used ÷Resource available

= 500 ÷ 600

= 0.83

By dividing the resources used with the resources available we can get the utilization and the same is applied

6 0

3 years ago

Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert. Floyd subsequently transfers this du

Lerok [7]

Answer: an obligor

Explanation:

From the question, we are informed that Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert and that Floyd subsequently transfers this duty to Hazel.

In this case, Floyd is an obligor. An obligor os defined as an individual who by contract or due to a legal procedure, undertakes an obligation for another individual.

7 0

3 years ago

Firms HL and LL are identical except for their leverage ratios and the interest rates they pay on debt. Each has $25 million in

erik [133]

Answer:

A. ROIC for firm LL 12%

ROIC for firm HL 12%

B. ROE for firm LL 13.5%

ROE for firm HL 18.6%

C. New ROE for firm LL 16.5%

Explanation:

A. Calculation to determine the return on invested capital (ROIC) for each firm

Using this formula

ROIC=EBIT(1-T)/Total Invested Capital

Let plug in the formula

ROIC=$5 million(1-.40)/$25 million

ROIC=$5 million*.60/$25 million

ROIC=$3 million/$25 million

ROIC=0.12*100

ROIC=12% for both firms

Therefore the return on invested capital (ROIC) for each firm is:

ROIC for firm LL is 12%

ROIC for firm HL is 12%

B. Calculation to determine the rate of return on equity (ROE) for each firm.

Calculation for ROE for firm LL

First step is to calculate the Debt

Debt=$25 million*20%

Debt=$5 million

Second step is to calculate the Debt Interest

Debt Interest=$5 million*10%

Debt Interest=$500,000

Third step is to calculate the EBIT of firm LL

EBIT of firm LL=$5 million- $500,000

EBIT of firm LL=$4,500,000

Fourth step is to calculate Tax owed

Tax owed =$4,500,000*40%

Tax owed =$1,800,000

Fifth step is to calculate the Net income of firm LL

Net income of firm LL=$4,500,000-$1,800,000

Net income of firm LL=$2,700,000

Sixth step is to calculate the Equity for firm LL

Equity for firm LL=$25million-$5 million

Equity for firm LL=$20 million

Now let calculate the ROE using this formula

ROE=Net income /Equity

Let plug in the formula

ROE=$2,700,000/$20 million*100

ROE=13.5%

Calculation for ROE for firm HL

First step is to calculate the Debt

Debt=$25 million*55%

Debt=$13,750,000

Second step is to calculate the EBIT of firm HL

EBIT of firm HL=$5 million-[(55%*$25 million)*11%]

EBIT of firm HL=$5 million-($13,750,000*11%)

EBIT of firm HL=$5 million-$1,512,500

EBIT of firm HL=$3,487,500

Third step is to calculate the Tax owed

Tax owed =$3,487,500*40%

Tax owed =$1,395,000

Fourth step is to calculate the Net income of firm HL

Net income of firm HL=$3,487,500-$1,395,000

Net income of firm HL=$2,092,500

Fifth step is to calculate the Equity for firm HL

Equity for firm HL=$25million- $13,750,000

Equity for firm HL=$11,250,000

Now let calculate the ROE using this formula

ROE=Net income /Equity

ROE=$2,092,500/$11,250,000*100

ROE=18.6%

Therefore the rate of return on equity (ROE) for each firm is:

ROE for firm LL is 13.5%

ROE for firm HL is 18.6%

C. Calculation to determine the new ROE for LL

First step is to calculate the debt

Debt=$25 million*60%

Debt=$15 million

Second step is to calculate the Debt Interest

Debt Interest=$15 million*15%

Debt Interest=$2,250,000

Third step is to calculate the EBIT of firm LL

EBIT of firm LL=$5 million- $2,250,000

EBIT of firm LL=$2,750,000

Fourth step is to calculate the Tax owed

Tax owed =$2,750,000*40%

Tax owed =$1,100,000

Fifth step is to calculate the Net income of firm LL

Net income of firm LL=$2,750,000-$1,100,000

Net income of firm LL=$1,650,000

Sixth step is to calculate the Equity for firm LL

Equity for firm LL=$25million-$15 million

Equity for firm LL=$10 million

Now let calculate the New ROE using this formula

ROE=Net income /Equity

Let Plug in the formula

ROE=$1,650,000/$10 million*100

ROE=16.5%

Therefore the new ROE for LL is 16.5%

5 0

3 years ago

The general expenses necessary to run the business are called Question 30 options: operating expenses. annual projections. 10-ye

sleet_krkn [62]

Answer:

Operating expenses

Explanation:

Before a business yields a profit as an output , there is a need for some input from the business owners. One of these input is operating expenses .

Operating expenses is supporting cost of keeping the business running in the course of normal production , different from the cost of production and is necessary as every form of other cost may not get a desired result without the operating cost.

Examples include rent , payroll ,transportation , security fees among others.

3 0

3 years ago