All categories

3 years ago

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for steel

1 answer:

3 0

Direct relation. If iron is used to make steel, and iron is cheaper now, steel will also be cheaper. Decrease in price can mean they have a bunch of it, a surplus.
Supply and demand says if you got a lot of something prices go down. So if you have a lot of cheap iron, you can make a lot of cheap steel

You might be interested in

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed

zvonat [6]

Answer:

Part 1) Compute the break even point in units.

break even point in units = 3,000 units

Part 2) New break-even point be if fixed costs increase by 10 percent

break even point in units = 3,300 units

Part 3) Company net income for the prior year

Net Income = 2,990,000

Part 4) Break even point be if the price is changed

break even point in units = 4,875 units

Explanation:

Part 1) Compute the break even point in units.

break even point in units = Fixed Cost / Contribution per unit

= 3,900,000/3100-1800

= 3,000 units

Part 2) New break-even point be if fixed costs increase by 10 percent

break even point in units = Fixed Cost / Contribution per unit

= 3,900,000×1.10/3100-1800

= 3,300 units

Part 3) Company net income for the prior year

Net Income = Contribution - Fixed Cost

= 5300×(3100p-1800p)-3900000

= 2990000

Part 4) Break even point be if the price is changed

break even point in units = Fixed Cost / Contribution per unit

= 3,900,000/2600-1800

= 4,875 units

8 0

3 years ago

Using the following selected items from the comparative balance sheet of Kato Company, illustrate horizontal and vertical analys

Ostrovityanka [42]

Answer:

Kato Company

a. Vertical Analysis:

December 31, 2020 % December 31, 2019 %

Accounts

Receivable $720,000 61.5% $630,000 63.6%

Inventory 450,000 38.5% 360,000 36.4%

Total current assets $1,170,000 100% $990,000 100%

b. Horizontal Analysis:

December 31, 2020 Change December 31, 2019

Accounts

Receivable $720,000 +14.3% $630,000

Inventory 450,000 +25% 360,000

Total current assets $1,170,000 +18.2% $990,000

Explanation:

a) Data and Calculations:

December 31, 2020 December 31, 2019

Accounts

Receivable $720,000 $630,000

Inventory 450,000 360,000

Total current assets $1,170,000 $990,000

December 31, 2020 % December 31, 2019 %

Accounts

Receivable $720,000 61.5%(720/1,170) $630,000 63.6% (630/990)

Inventory 450,000 38.5% (450/1,170) 360,000 36.4%(360/990)

Total current assets $1,170,000 100% (1,170/1,170) $990,000 100% (990/990)

December 31, 2020 Change December 31, 2019

Accounts

Receivable $720,000 +14.3% (720-630)/630 $630,000

Inventory 450,000 +25% (450-360)/360 360,000

Total current assets $1,170,000 +18.2% (1,170-990)/990 $990,000

b) The vertical analysis of Kato's balance sheet items focuses on the relationships between the line items in a single reporting period, while horizontal analysis focuses on multiple reporting periods, reporting on the changes between the accounting periods.

6 0

3 years ago

As a junior congress person you have been asked to help promote a bill to allow casino gambling in your state. There is much opp

MariettaO [177]

Explanation:

I would promote the establishment of the Casino Gambling Bar in my state and plan my arguments for discussion on the following items:

Casino deserves to play in the State:

More collection of revenue in the form of tax for the administration.

Tourist inflows on weekends, which lead to additional state revenues.

Boost in other businesses, such as casinos, pubs, car parks, gas sales, beer sales and expanded road tax collection.

Improved prospects for jobs.

The increased income selection will create a tourist attraction for the state residents, such as the ocean or a lake.

The demerits I can list and probably face during the argument are:

Concerns of law and order: Night operations are improved and provisions for the Casino Licensing are complied with.

It can increase drug trafficking. Education shall be taken by the police and other law enforcement agencies.

Drug addicts can harm the state: police take care. drug addicts.

Nightlife can be achieved for neighboring residents. Credit shall be taken on night patrols.

Can increase the number of road accidents caused by drunk driving.

Case that Casino Gambling is not new to America. Any real and concrete ties to ill effects such as opined use, drug trafficking and other ill effects are only attributed to a gaming casino.

If all the negative effects expected or perceived by the law enforcement agency are tracked, all the negative effects may be entirely eradicated and savings can be gained from increased revenues by the state.

Discussions with all state machinery must be held before the property is transferred to the casino and the police office can also provide its guidance during this time.

5 0

3 years ago

As the financial consultant to a classic auto dealership, you estimate that the total value (in dollars) of its collection of 19

Sophie [7]

Answer:

The owner will maximize value if it waits 29th years Assuming 5% continuos inflation

Explanation:

the price formula for the future years is:

$v = 301000 + 960 t^{2}$

while it is adjusted for inflation at:

$v \times e^{-0.05t}$

so the complete formula for value is:

$\frac{301000 + 960 t^{2}}{e^{0.05t}}$

Now, we can derivate and obtain the roots

Getting at a root exist at the 29th year.

The owner will maximize value if it waits 29th years Assuming 5% continuos inflation

8 0

3 years ago

New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $69,300 in cash. The book values and fair va

julsineya [31]

Answer:

Amount paid for goodwill is $24,900

Explanation:

Note: The data in the question are merged and they first sorted before answering the question as follows:

Book Value Fair Value

Current assets $ 28,700 $ 22,300

Property, plant, and equipment 47,800 52,600

Other assets 3,500 5,800

Current liabilities 15,100 14,900

Long-term liabilities 29,000 21,400

The explanation of the answer to the question are now provided as follows:

Generally, goodwill refers to an intangible asset of a company and it can be in different for such as intellectual property, brand, commercial secrets, and reputation.

Amount paid for goodwill of an acquired company can be estimated by deducting the fair value of net identifiable assets acquired from the consideration paid.

For this question, fair value of net identifiable assets can be calculated as follows:

Particular Fair Value ($)

Current assets 22,300

Property, plant, and equipment 52,600

Other assets 5,800

Current liabilities (14,900)

Long-term liabilities (21,400)

Fair value of net asset  44,400 

Therefore, we have:

Amount paid for goodwill = Cash consideration paid - Fair value of net asset = $69,300 - $44,400 = $24,900

6 0

3 years ago

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for​ steel

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for steel