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3 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]3 years ago

6 0

Answer:

elastic demand and inelastic supply

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.

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Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years o

Gre4nikov [31]

Solution and Explanation:

1 Breakeven point = Fixed cost/contribution per unit

$480000+360000 /(57-43)$ = 60000 Units

2. a

year 1 year 2 year 3

unit product cost 41 41 41

Direct material 25

Direct Labour 12

Variable manufactoring overhead 4

Variable costing unit product cost 41

2. b Variable expenses

Variable cost of goods sold 24,60,000 30,75,000 16,40,000

Variable selling and administrative 1,20,000 1,50,000 80,000

Total variable expenses 25,80,000 32,25,000 17,20,000

Contributon margin 8,40,000 -3,75,000 19,85,000

Fixed expenses

Fixed manufactoring overhead 4,80,000 4,80,000 4,80,000

Fixed selling and administrative 3,60,000 3,60,000 3,60,000

Total Fixed Expenses 8,40,000 8,40,000 8,40,000

Net operating income -12,15,000 11,45,000 Note Year 1 year 2 year 3

Unit sold 60000 50000 65000

Unit price 57 57 57 Sales 3420000 2850000 3705000

Variable cost of goods sold

Unit 60000 75000 40000

Unit cost 41 41 41

Total 2460000 3075000 1640000 Variable selling and administrative

Unit 60000 75000 40000

Unit cost 2 2 2 Total 120000 150000 80000

a unit product cost year 1 year 2 year 3

Direct material 25 25 25

Direct Labour 12 12 12

Variable manufactoring overhead 4 4 4

Fixed manufactoring over head 8 6.4 12

Variable costing unit product cost 49 47.4 53

Note

Fixed manufactoring over head

480000 divided by 60000 8.00

480000 divided by75000 6.40

480000 divided by 40000 12.00

b Hass company

Absorbtion costing income statement

Year 1 year 2 year 3

Sales 34,20,000 28,50,000 37,05,000 Cost of goods sold 29,40,000 23,70,000 33,05,000 Gross margin 4,80,000 4,80,000 4,00,000 selling and admin exp 4,80,000 4,60,000 4,90,000 Net operating income - 20,000 -90,000 Note

Cost of goods sold

Year 1 60000 multiply with 49 = 2940000

Year 2 50000 multiply with47.4= 2370000

Year 3 $25000 * 47.4+40000 * 53$ = 3305000

selling and administrative expenses

Year 1 $60000 * 2+360000$ = 480000

Year 2 $50000 * 2+360000$ = 460000

Year 3 $65000 * 2+360000$ = 490000

4 0

2 years ago

.Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increa

telo118 [61]

Answer:

The answer is $150

Explanation:

Change in Total Revenue = Total Revenue – Revenue figure before the additional unit was sold

Marginal revenue = (11*700) - (10*701)= $150

5 0

3 years ago

Using scenarios to help recognize outcomes and plan better falls under the critical thinking idea of

Yuki888 [10]

The answer for this qeustion is: Thinking in time
By using scenarios, we can formulate several outcomes that could possibly happen if we decided to follow a certain plan.
If we do this, we could prepare our actions on how to deal with those outcomes before it actually happens in real life.

8 0

3 years ago

The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 8,000 batte

grin007 [14]

Answer and Explanation:

The computation is shown below:-

a) raw-materials is

= (8,000 - 7,600) × $80

= $32,000

b) work in process 7,500 batteries x $80 x 10%

= $60,000

c) Finished goods = 7,500 batteries × $80 × 90% × 30%

= $162,000

d) cost of goods sold 7,500 batteries x $80 × 90% × 70%

= $378,000

e) selling expense is

= 100 × $80

= $8,000

Total 8,000 batteries purchased × $10 per battery is

$80,000

2. Specification is shown below:

a) rawmaterials stock $32,000 Balance Sheet

b) work inprocess $60,000 BalanceSheet

c) Finishedgoods stock $162,000 BalanceSheet

d) cost of goodssold $378,000 IncomeStatement

e) sellingexpense $8,000 IncomeStatement

7 0

2 years ago

A very safe stock investment that generally attracts conservative investors is called a ________ stock. the dow 30 is made up of

Vladimir [108]

A very safe stock investment that generally attracts conservative investors is called a blue chip stock. the dow 30 is made up of such stocks.

The Dow Jones Industrial Average measures the average cost of 30 selected industrial stocks. This is important because the financial industry uses it to show the direction of the stock market over time.

The Dow Jones Industrial Average includes prices for only 30 companies and is a simple average. - The S&P 500 Stock Index is broader (500 shares) and represents a value-weighted average that gives more weight to the stocks with the largest market capitalization.

The Dow Jones Industrial Average is an index of 30 "blue chip" US industrial companies. The index includes a wide range of companies, from financial services companies to computer companies to retailers, but excludes transportation and utility companies included in another index.

Learn more about stock here brainly.com/question/25818989

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3 0

1 year ago