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3 years ago

How would consumers who traditionally pay using cash potentially benefit from an interchange fee cap?

Business

2 answers:

snow_tiger [21]3 years ago

8 0

Answer:

Interchange fees increase the cost of selling a good or service. For example the interchange fee for using a credit card in the US is around 2%, so the cost of selling a good or service using a credit increases by 2%.

If a cap is set on interchange fees, then they should probably decrease, decreasing the cost of selling goods or services. For example, in the UE the interchange fees are capped to 0.3% for credit cards and 0.2% for debit cards.

Since the cost of sales using debit and credit cards would decrease, the price of goods and services should also decrease. If the interchange fees are extremely low, then all businesses should adopt debit card and credit card payments as equal to cash payments.

This will probably lead to more cash paying individuals deciding to use debit cards, and maybe even credit cards.

marshall27 [118]3 years ago

4 0

The only way I can think of is that the interchange fee cap would reduce the cost of doing business for the merchant, so they might reduce their prices slightly for all customers as a result. Of course many merchants will just keep the prices the same and be happy for the extra profit in which case the consumer doesn't benefit - just the merchant.

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Van has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Amy, whom

yan [13]

Answer:

The right choice is "3 Correctly ignored a sunk cost"

Explanation:

As the ticket to the opera was already bought and it is nonrefundable, nonexchangeable, and nontransferable; whether Van decides to go to the opera or to go to the party with Amy; he has incurred $100 cost of ticket which can not be recovered in any manner.

The ticket cost in this question is categorized as sunk cost - cost that incurred in the past and will be remained the same regardless of any future actions. Thus, this type of cost should be ignored when making decision for the future.

So, "3 Correctly ignored a sunk cost" is the correct choice.

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3 years ago

Do you think people tailor their behavior to suit those in power more than they admit?

krek1111 [17]

Answer:

yes, of course they do

Explanation:

people will always tailor their behavior wether it's against them or for them, depending on how they feel they will act a certain way

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3 years ago

The equipment salesperson asked the professional landscaper, "Did you know the RedMax brand backpack blower can save you time an

Greeley [361]

Answer:

B. customer benefit

Explanation:

Based on the information provided within the question it can be said that the salesperson was using a customer benefit approach. This refers to when a salesperson states the ways and features that will make the product or service valuable to the customer. This is what the salesperson was doing in this situation by stating that the product can save the person time and money with it's features thus adding value.

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3 years ago

Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]Mulligan Manufacturing Company uses a job order cos

KiRa [710]

Answer:

For Case 1:

Manufacturing overhead applied = 27,000

Total current manufacturing costs = 60,000

Cost of goods manufactured = 64,000

Cost of goods sold = 61,100

For Case 2:

Direct labor = 7,667

Direct material used = 8,333

Beginning work in process inventory = 26,400

Ending finished goods inventory = 15,000

For Case 3:

Direct labor = 5,760

Manufacturing overhead applied = 8,640

Ending work in process inventory = 10,499

Beginning finished goods inventory = 16,199

Explanation:

Note: The data in the question are merged together. The data are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

Also note: See the attached excel file for the table with the computed figure in bold red color.

In the attached excel file, the following calculations are employed:

For Case 1:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Manufacturing overhead applied = Direct labor * 150% = 18,000 * 150% = 27,000

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied = 15,000 + 18,000 + 27,000 = 60,000

Cost of goods manufactured = Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory = 60,000 + 9,900 - 5,900 = 64,000

Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = 64,000 + 4,700 - 7,600 = 61,100

For Case 2:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Direct labor = (Manufacturing overhead applied / 150%) * 100% = (11,500 / 150%) * 100% = 7,667

Direct material used = Total current manufacturing costs - Manufacturing overhead applied - Direct labor = 27,500 - 11,500 - 7,667 = 8,333

Beginning work in process inventory = Cost of goods manufactured + Ending work in process inventory - Total current manufacturing costs = 44,000 + 9,900 - 27,500 = 26,400

Ending finished goods inventory = Cost of goods manufactured + Beginning finished goods inventory - Cost of goods sold = 44,000 + 12,000 – 41,000 = 15,000

For Case 3:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we can let:

Direct labor = x

Therefore, we have:

Manufacturing overhead applied = x * 150%

Since,

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied ……………………….. (1)

Where;

Total current manufacturing costs = 28,500

Direct material used = 14,100

We can therefore substitute the relevant values into equation (1) and solve for x as follows:

28,500 = 14,100 + x + 1.5x

28,500 - 14,100 = 2.5x

14,400 = 2.5x

x = 14,400 / 2.5

x = 5,760

Therefore;

Direct labor = x = 5,760

and

Manufacturing overhead applied = x * 150% = 5,760 * 150% = 8,640

Ending work in process inventory = Total current manufacturing costs + Beginning work in process inventory - Cost of goods manufactured = 28,500 + 8,000 - 26,001 = 10,499

Beginning finished goods inventory = Cost of goods sold + Ending finished goods inventory - Cost of goods manufactured = 36,000 + 6,200 - 26,001 = 16,199

Download xlsx

xlsx

pdf

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3 years ago

Maria lost her job because the economy is shrinking. This is an example of _____.

kakasveta [241]

It is an example of cyclical unemployment.

I hope this helps!

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3 years ago

Read 2 more answers