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Gnoma [55]
3 years ago
7

Assume that demand for bottled water is relatively price elastic. An increase in supply of bottled water will result in which of

the following?
1. A decrease in price, leading to an increase in total revenue
2. A decrease in price, leading to a decrease in total revenue
3. An excess supply of bottled water
4. An excess demand for bottled water
5. A relatively small decrease in price and no change in equilibrium quantity
Business
1 answer:
DENIUS [597]3 years ago
3 0

Answer:

3 then 1

Explanation:

Supply is said to be increased when the quantity supplied expands but the price and quantity demanded remains unchanged. As quantity supplied has increased whereas the quantity demanded is what it was before this change, there is first a surplus of bottled water in the market. This surplus will have a downward pressure on price, reducing the quantity supplied a bit and, as the law of demand suggests ,the quantity demanded will increase. Given that the demand is relatively price elastic, the change in quantity demanded will be greater than the change in price. Therefore the revenue will increase.

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Bonner Automotive has shareholders' equity of $218,700. The firm owes a total of $141,000 of which 40 percent is payable within
MA_775_DIABLO [31]

Answer:

$93,500

Explanation:

Net Working Capital = Current Assets - Current Liabilities

Current Assets = Total Equity + Liability - Fixed Assets

= $218,700 + $141,000 - $209,800 = $149,900

Current Liability = $141,000 X 40% = $56,400

As out of total due 40% is payable within a year, which means it is current liability.

Net working capital = $149,900 (current assets) - $56,400 (current liability)

= $93,500

6 0
3 years ago
Break-Even Analysis Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websi
kogti [31]

Answer:

Break-even point= 7,900 new costumers

Explanation:

Giving the following information:

Assume that during a recent fiscal year, one outlet spent $1,659,000 on a promotional campaign for its website that offered two free months of service for new subscribers.

In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 22 months Revenue per month per customer subscription $16 Variable cost per month per customer subscription $5.

Break-even point= fixed costs/ contribution margin

Fixed costs= 1,659,000

Contribution margin= (16*20)-(5*22)= 210

Break-even point= 1,659,000/210= 7,900 new costumers

6 0
3 years ago
How many times will interest be added to the principal in 1 year if the interest is compounded quarterly? A. 6 B. 12 C. 4 D. 3
nadezda [96]

Answer:

How many times will interest be added to the principal in 1 year if the interest is compounded quarterly?  C. 4

Explanation:

Compounding means at the end of every term, the interest adds up to the Principal Amount. Compounded quarterly means, you do it for every three months. So after every three months, your interest will be added to principal.

7 0
3 years ago
Which of the following statements concerning internal controls is true? Multiple Choice Strong internal controls cannot be circu
GrogVix [38]

The True statement about internal controls is <em>B.  A system of internal controls is designed to prevent or detect errors and fraud.</em>

  • Internal Controls are the techniques that an entity institutes to ensure the integrity of financial and accounting information, promote accountability of its employees, and prevent fraudulent activities.

  • Strong internal controls can still be circumvented.  Internal controls are not limited to company policies and procedures against fraud. The employment of a husband and wife or close relations in the same company is not prohibited by control procedures or separation of duties.

Thus, the true statement about internal controls is B.

Read more: brainly.com/question/17056417

3 0
2 years ago
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1$(12,000)Net Section 1
vekshin1

Answer:

a. $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

Explanation:

Note: This question is not complete as part 'a' of the requirement is omitted. The complete question with the part 'a' of the requirement is therefore provided before answering the question as follows:

Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses.

Year 1  $ (12,000)    Net Section 1231 loss

Year 2      10,500      Net Section 1231 gain

Year 3    (14,000)     Net Section 1231 loss

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Explanation of the answer is now provided as follows:

When section 1231 losses exceed section 1231 profits in the prior five years, the excess loss (unapplied loss) is applied against the current year's section 1231 gain.

The amount that is reported as ordinary income is the amount of the loss that is applied against the current year's section 1231 gain.

Long-term capital gain is the excess of the current year's section 1231 gain over the the recaptured section 1231 loss from the prior five years.

You have to start with the earliest year to apply section 1231 losses from the previous five years to the current year's section 1231 gain.

Therefore, we have:

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

As a result of the loss from the previous year that is applied to the extent of $7,500, the whole of the $7,500 net Section 1231 gain will be recorded as ordinary gain.

Therefore, $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Unapplied losses in previous years can be calculated as follows:

<u>Details                                                       Amount ($)   </u>

Net Section 1231 loss in Year 3                  (14,000)    

Net Section 1231 gain in Year 4                   7,500

Net Section 1231 loss in Year 1                  (12,000)

Net Section 1231 gain in Year 2               <u>   10,500  </u>

Unapplied losses in previous years    <u>    (8,000)  </u>

Because there are unapplied losses of $8,000 from previous years, $8,000 will be reported as ordinary gain.

Therefore, the amount to be reported as capital gain can be calculated as follows:

Amount to be reported as capital gain = Gain in Year 5 – Amount to be reported as ordinary gain = $9,000 - $8,000 = $1,000

Therefore, $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

8 0
3 years ago
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