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hammer [34]
3 years ago
12

A deadweight loss is a consequence of a tax on a good because the tax

Business
1 answer:
mamaluj [8]3 years ago
4 0

Answer:

b. induces buyers to consume less, and sellers to produce less.

Explanation:

Because of the increase of tax on each good, it will cause a deadweight loss. At higher tax rates we consumers tend to consume less, the decrease in demand will inevitably decrease the supply therefore sellers will produce less.

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Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years. Target average profit margin for Simon
Luda [366]

Answer:

Allowable unit cost of a hydraulic valve using the target costing model = 52.4

Explanation:

Given that:

Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years.

Target average profit margin for Simon 20.00%

The company does not expect the manufacturing cost to vary over the next 4 years

Estimated sales volume and the unit selling price of the valve for the next 4 years is given below:

Year                  Sales volume (units)                   Unit selling price

Year 1                       40,000                                 $80.00

Year 2                      50,000                                 $75.00

Year 3                     35,000                                   $50.00

Year 4                      25,000                                  $45.00

The objective is to determine the allowable unit cost of a hydraulic valve using the target costing model.

The Cost for each unit selling price can be calculated as:

= unit selling price - (Target average profit margin × unit selling price)

For Year 1

=  $80.00- (0.2 × $80.00)

= $80.00 - $16.00

= $64.00

For Year 2

= $75.00 - ( 0.2 × $75.00)

= $75.00 - ( $15.00)

= $60.00

Year 3

= $50.00 - (0.2× $50.00)

= $50.00 - $10.00

= $40.00

Year 4

= $45.00 - (0.2 × $45.00)

=$45.00 - $9.00

= $36.00

Year       Sales volume    Unit                Cost          Cost per Unit

                (units)             selling price  

Year 1       40,000          $80.00          $64.00       $2560000

Year 2      50,000          $75.00          $60.00       $3000000

Year 3      35,000          $50.00          $40.00        $1400000

Year 4       25,000          $45.00         $36.00        $900000

Total:        150000                                                    $7860000

Allowable unit cost = Total cost/Total number of unit cost

Allowable unit cost = $7860000/150000

Allowable unit cost = 52.4

6 0
3 years ago
To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all tha
vaieri [72.5K]
I believe the answer is: 

- What can go wrong?
This question is asked to find out the potential risk that may occur after purchasing the product.

- What is the likely return?
This question is asked to find out potential benefit from consuming the product

-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk

</span>
4 0
3 years ago
Read 2 more answers
Suppose selected comparative statement data for the giant bookseller Barnes &amp; Noble are presented here. All balance sheet da
grandymaker [24]

Answer:

Profit margin = net profit / total sales = $78 / $5,200 = 1.5%  

Asset turnover = total sales / average total assets = $5,200 / ($2,990 + $3,510) = 1.6

Return on assets = net income / average total assets = $78 / $3,250 = 2.4%  

Return on common stockholders’ equity =  net income / average stockholders' equity = $78 / ($992 + $1,031) = 7.71%  

Gross profit rate = gross profit / total sales = $1,716 / $5,200 = 33%

3 0
3 years ago
German and Japanese firms are viewed as having a _____ advantage in exporting compared to U.S. firms.
e-lub [12.9K]

Answer:

bigger is the correct answer.

Explanation:

4 0
2 years ago
Marginal​ cost-benefit analysis and the goal of the firm Ken​ Allen, capital budgeting analyst for Bally​ Gears, Inc., has been
True [87]

Answer:

1) The marginal​ (added) benefits of the proposed new robotics.

560,000 - 400,000 = 160,000

2) The marginal​ (added) cost of the proposed new robotics.

220,000 - 70,000 = 150,000

3) The net benefit of the proposed new robotics.

160,000 - 150,000 = 10,000

4) What should Ken recommend that the company​ do? Why?

Replace the existing robotics because the net profit is positive

5) What factors besides the costs and benefits should be considered before the final decision is​ made?

A. Whether there will be additional training necessary with the new robotics.

B. Whether even better robotics may be available in a short while.

C. What will be the energy consumption of the new robotics.

5 0
3 years ago
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