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2 years ago

Determine how each scenario will impact either supply or demand in the given market.

Business

1 answer:

Mila [183]2 years ago

3 0

Answer:

Please see the answer together with the explanation in the below Explanation section.

Explanation:

The price of goose feathers, an input for pillows, increases sharply: Supply will decreases as some suppliers will move away from the market due to increase in production cost causing them to a profitability level lower than their expectation.

Researchers develop a higher-yielding, insect-repellant strain of rice: Supply of price will increase as with higher productivity rice plant.

During the Great Recession, the average income for an American worker fell sharply. During that time, families began preparing more of their own meals: demand will decrease as less people is willing/able to afford meals at the current market price, supply will also decrease as some of the restaurant closes down due to low revenue, some who still maintain expected profit margin will decrease price to meets people's affordability.

Spam unveils a new flavor, barbeque, which has students intrigued. The students transition from buying ham to Spam: Demand will increase as student prefer spam over ham and they are willing to pay more to enjoy better taste. With higher price, there is more motivation for spam to produce more which will also increase supply side of the market.

iDecide, a consulting firm, joins the market for accounting: supply will increase as there are more suppliers in the markets.

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Completed Per Day

Ratling [72]

Answer:

The correct option is A, Samantha weed and Adam will rake because these are the goods each has a comparative advantage in.

Explanation:

The opportunity formula comes handy in this case, which is given below:

opportunity cost formula=what one sacrifices/what one gains

If Samantha were to weed flower beds, opportunity cost is computed thus:

Opportunity cost of Samantha weeding flower beds=8/4= 2 bags of leaves raked

The opportunity of Adam weeding flower beds=25/5 =5 bags of leaves raked.

In a nutshell ,if Samantha weeds flowers they would lose 2 bags of leaves raked while if Adam were to do so same, they would lose 5 bags of leaves raked, conclusively Samantha should weed flower beds since she has lower opportunity, higher comparative advantage

4 0

3 years ago

Warm-Up

zloy xaker [14]

Answer:

$1,088.12

Explanation:

The formula for calculating monthly repayments is as below.

M= P x r

1 − (1+r)−^n

where p is the loan amount = $220,000

r = 4.3per cent or 0.043 % interest rate per year,

on monthly basis r will be 0.043/12=0.00358%

n = 30 year, which is 30 x 12 months= 360 months

M= $220,000 x 0.00358

1 - (1+0.00358 ) ^ - 360

M=$220,000 x 0.00358

1- 0.2762

M = $220,000 x (0.00358 /0.7238)

M = $220,000 x 0.0049461

M = 1,088.12

Monthly payments will be $1,088.12

4 0

3 years ago

Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co

KATRIN_1 [288]

Answer:

$58,500

Explanation:

The outside basis is defined as the tax basis that a partner has on the partnership. To find it, the value of all the resources contributed by the partner is taken and the debt relief and any debt assigned is subtracted. To solve this exercise, we should follow these steps:

1. Determine the contributed capital.

According to the problem statement, Brett provided cash ($ 9,500) and a building (here the value of the adjusted base, $ 39,000, is taken). Therefore, the total contributions are $48,500.

2. Calculate capital increases.

The partnership obtained a loan for $59,000, which was shared equally among the partners. Therefore, Brett received 50%, that is, $29,500.

Now, we must add the contributed capital plus capital increases:

$48,500+29,500=78,000$

3. Calculate mortgage debt issues.

The nonresource mortgage is 44,000, a value that exceeds the basis of the contributed property. In that case, the surplus is taxed to the contributing partner. To determine it, simply subtract the nonresource mortgage less adjusted basis of the building:

$44,000-39,000=5,000$

On the other hand, the remaining mortgage on the building is calculated, by dividing the value of the adjusted base of the property, in this case, 39,000 by 2, which results in 19,500.

Therefore, mortgage debt issues are equivalent to:

$5,000+19,500=24,500$

We add the contributed capital plus capital increases plus mortgage debt issues:

$78,000+24,500=102,500$

4. Subtract debts.

The partnership assumes the nonrecourse mortgage (which is computed as a debt) for 44,000. Because this component is not covered entirely by Brett, then this amount must be deducted from his individual tax base.

Therefore:

$102,500-44,000=58,500$

58,500 is Brett´s outside tax basis in his LLC interest.

On a balance sheet, we can see it as follows:

Particulars Amount in $

Cash 9,500

+Adjusted basis of the 39,000

building

+50% profit sharing ratio 29,500

+Nonrecourse mortgage 5,000

less adjusted basis

+Remaining mortgage on 19,500

building

TOTAL 102,500

-Debt on building (44,000)

Outside tax basis 58,500

7 0

3 years ago

In 2016, Carow sold 3,000 units, at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same

photoshop1234 [79]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

In 2016, Carow sold 3,000 units, at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000.

The same selling price is expected for 2017. Carow is tentatively planning to invest in equipment, that would increase fixed costs by 20% while decreasing variable costs per unit by 20%.

First, we need to calculate the ner fixed and variable costs:

Fixed costs= 500,000*1.20= $600,000

Variable costs= 250*0.8= $200

Now, we can calculate the break-even point:

Break-even point= fixed costs/ contribution margin

Break-even point= 600,000 / (500 - 200)= 2,000 units

5 0

3 years ago

Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $153,000 Credit sale

rodikova [14]

Answer:

Balance of allowance for doubtful accounts after Bad debt Expense is $2700

Explanation:

given data

Cash sales= $153,000

Credit sales = $453,000

Selling and administrative expenses = $113,000

Sales returns and allowances= $33,000

Gross profit = $493,000

Accounts receivable = $140,000

Sales discounts = $17,000

doubtful accounts credit balance = $1,500

solution

we know here Total Bad Debit = 3% of accounts receivable

that is Total Bad Debit = 0.03 × $140,000

Total Bad Debit = $4200

so here allowance for doubtful account credit balance = $1500

Balance of allowance for doubtful accounts after Bad debt Expense will be

Balance of allowance for doubtful accounts = $4200 - $1500

Balance of allowance for doubtful accounts = $2700

6 0

3 years ago