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2 years ago

An increase in the size of a tax is most likely to increase tax revenue in a market with elastic demand and elastic supply.

Business

1 answer:

Inga [223]2 years ago

6 0

Answer:

<u>elastic demand and inelastic supply</u>

Explanation:

When the demand for a substance goes up the price of a similar product also goes up this emphasis on the elasticity of demand of the product which is due to the increase in the rise in the revenues of the demanded product.

Thus an increase in revenue the total demand will be elastic and increased price has a larger demand on the quantity demanded so the example of petrol or oil product, sale of the cigar, and chocolate all depends on the inelastic production supply.

Based on the availability of raw mater, Length, and complexity of production, the Mobility of factors and time taken to make.

You might be interested in

Is it reasonable to expect that managers can measure their social and environmental performance on the same level as they measur

Kobotan [32]

Answer:

The correct answer is: No, it is not reasonable to expect that managers can measure their social and environmental performance on the same level as they measure their financial performance.

Explanation:

To begin with, the concept known as <em>triple bottom line</em> refers exactly to the measuring of the the financial, social and environemental performances from part of an organization. However, it is not posible to measure them in the same way, due to the fact that they are very different terms with different factors. Therefore that in order to measure one of them there will be an unique way of doing it that can not be copy in order to measure the other. That is why if the organization want to measure the financial performance it will look into the numbers but with the social or environmental performance it can not do that.

7 0

2 years ago

The net income reported on the income statement of Whispering Winds Corp. for the current year was $1251000. Depreciation record

Degger [83]

Answer:

$1,454,000

Explanation:

Calculation to determine How much cash was provided by operating activities during the year

Using this formula

Operating activities=Net income+Depreciation+ Increased in Accounts receivable -Increased in inventories + Decreased in Prepaid expenses - Decreased in accounts payable

Let plug in the formula

Operating activities=$1251000 + $236000 -$66000 - $44000 +$6000 - $61000

Operating activities=$1,454,000

Therefore the amount of cash was provided by operating activities during the year is $1,454,000

6 0

2 years ago

On December 31, Strike Company sold one of its batting cages for $11,597. The equipment had an initial cost of $472,800 and had

stealth61 [152]

Answer:

Loss on transaction is $12,043

Explanation:

Given:

Initial cost of equipment = $472,800

Accumulated depreciation = $449,160

Salvage value = Initial cost - accumulated depreciation

= $472,800 - 449,160

= $23,640

Selling price of equipment = $11,597

Since selling price is lesser than salvage value, the company incurs loss on the sale of equipment.

Loss on sale of equipment = Salvage value - selling price

= 23,640 - 11,597

= $12,043

3 0

2 years ago

Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and tim

Phantasy [73]

Answer:

Hearne Company

Project 1 Project 2 Project 3

Initial investment cost $4,850,000 $3,400,000 $2,875,000

Annual cash inflows 865,000 1,105,000 475,000

PV annuity (5.335/3.791/6.145) 4,614,775 4,189,055 $2,918,875

Useful life 8 years 5 years 10 years

Salvage Value 1,000,000 0 125,000

PV (0.467/0/0.386 467,000 0 48,250

Depreciable/Amortization amount $3,850,000 $3,400,000 $2,750,000

Annual depreciation/amortization 481,250 680,000 275,000

Annual Returns 383,750 425,000 200,000

Average annual investment cost 606,250 680,000 287,500

a. Accounting rate of return 63.30% 62.50% 69.57%

b. Payback period 5.61 years 3.08 years 6.05 years

Total PV of cash inflows 5,081,775 4,189,055 2,967,125

c. NPV $231,775 $789,055 $92,125

d. Profitability Index 1.0478 1.2321 1.0320

Prioritization of Projects:

Project 2

Project 1

Project 3

Based on NPV, Profitability Index, and Payback Period.

Explanation:

a) Data and Calculations:

Project 1 Project 2 Project 3

Initial investment cost $4,850,000 $3,400,000 $2,875,000

Annual cash inflows 865,000 1,105,000 475,000

PV annuity (5.335/3.791/6.145) 4,614,775 4,189,055 $2,918,875

Useful life 8 years 5 years 10 years

Salvage Value 1,000,000 0 125,000

PV (0.467/0/0.386 467,000 0 48,250

Depreciable/Amortization amount $3,850,000 $3,400,000 $2,750,000

Annual depreciation/amortization 481,250 680,000 275,000

Annual Returns 383,750 425,000 200,000

Average annual investment cost 606,250 680,000 287,500

Accounting rate of return 63.30% 62.50% 69.57%

Payback period 5.61 years 3.08 years 6.05 years

Total PV of cash inflows 5,081,775 4,189,055 2,967,125

NPV $231,775 $789,055 $92,125

Profitability Index 1.0478 1.2321 1.0320

Key Calculation Formulas:

Annual cash flows = Annual Depreciation Plus Annual Net Income

Present of annual cash flows = Annuity factor * Annual cash flows

PV of Salvage value = Salvage value * Discount Factor

The Depreciable or Amortization amount = Initial investment cost Minus Salvage value

Annual Returns = Annual Cash inflow Minus Depreciation

Average annual investment cost = Initial investment cost/useful life

Accounting rate of return = average annual returns/average annual investment cost

Payback period = Initial investment/Annual cash inflows

Total PV of cash flows = PV of annual cash inflows + PV of Salvage value

NPV = Total PV of cash flows Minus Initial Investment Cost

Profitability Index = Total PV of cash flows/Initial Investment Cost

3 0

2 years ago

You estimate that by the time you retire in 35 years, you will have accumulated savings of $2.9 million. a. If the interest rate

ivann1987 [24]

Answer:

$338,805.68

Explanation:

The computation of the amount of annual level of expenditure is shown below

Here we use the PMT formula

Given that

NPER = 15

RATE = 8%

FV = $0

PV = $2,900,000

The formula is shown below:

= PMT(RATE, NPER,-PV,FV,TYPE)

The present value comes in negative

After applying the above formula, the amount of annual level of expenditure is $338,805.68

3 0

2 years ago