Answer: See explanation
Explanation:
The magnitude of the deadweight loss resulting from the externality is shown below:
MC = 500 + 2Q
MEC = 40 + 2Q
Therefore, the Marginal social cost (MSC) will be:
= MC + MEC
= 500 + 2Q + 40 + 2Q
= 540 + 4Q
Since Demand: Q = 150,000 - 100P, we have to get a function for P which will be:
Q = 150,000 - 100P
100P = 150,000 - Q
P = (150,000 - Q)/100
P = 1,500 - 0.01Q
Total revenue, TR = P x Q
= (1,500 - 0.01Q) × Q
= 1500Q - 0.01Q²
Marginal revenue, MR will be:
= dTR / dQ
= 1,500 - 0.02Q
It should be noted that for when there's no externality, Equilibrium, MC must be equal to MR. Therefore,
1,500 - 0.02Q = 500 + 2Q
2Q + 0.02Q = 1500 - 500
2.02Q = 1,000
Q = 1000/2.02
Q = 495
P = 1,500 - (0.01 x 495)
= 1,500 - 4.95
= 1,495.05
When there's externality, Equilibrium will be:
MR = MSC
1,500 - 0.02Q = 540 + 4Q
4.02Q = 960
Q= 960/4.02
Q = 239
Therefore, P = 1,500 - (0.01 x 239)
= 1,500 - 2.39
= 1,497.61
Then, we will calculate the deadweight loss which will be:
= 1/2 x Difference in price x Difference in quantity
= 1/2 x (1,497.61 - 1,495.05) x (495 - 239)
= 1/2 x 2.56 x 256
= 327.68
Answer:
a. The Other comprehensive income for 2017 is $-11.2 million
b. The Comprehensive income for 2017 is $1,293.8 million
c. The Accumulated other comprehensive income at December 31, 2017 is $45.2 million
Explanation:
a. According to the given data the company incurred a loss of $11.2 million as an unrealized income from available-for-sale debt securities. It is the actual loss.
Therefore, other comprehensive income is (-$11.2) million.
b. In order to calculate the Comprehensive income for 2017 we would have to use the following formula:
Comprehensive income=Net income−Unrealised holding loss
=$1,305 million−$11.2million
=$1,293.8 million
Therefore, comprehensive income for 2017 is $1,293.8 million
c. In ordert to Calculate the accumulated other comprehensive income we would have to use the following formula:
Accumulated comprehensive income
= Existing income−Unrealised holding loss
=$56.4million−$11.2million
=$45.2million
The Accumulated other comprehensive income at December 31, 2017 is $45.2 million
Answer:
(C) Unaffected.
Explanation:
This is a change in estimate. No prior period adjustment is needed.
Answer:
architectural innovation
Explanation:
The scenario is describing the term known as architectural innovation. This refers to the innovation of the specific architecture of any product that changes and/or modifies the way the different components of the machine link or relate to each other, thus allowing it to perform new functions or the same functions but in a much more user-friendly manner. This is what Canon did by changing the architecture of the copying machine so that it was more user-friendly for the end consumer.
Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold
If they meet their goal, let's see how that would go:
(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000
24,000 is the profit they would make for hitting their goal.
Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units
We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!
Question 2: If they increase their expenses by 16,000, what is their new break even point?
(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833
Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)
Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?
10% Reduction in price: 8
80-8 = 72
10% increase in sales: 200
2000 + 200 = 2200
Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000
Since this number is positive, this is income. (D)
