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3 years ago

An optimizing consumer will select the consumption bundle in which the :

Business

1 answer:

padilas [110]3 years ago

4 0

Answer:

c. marginal rate of substitution is equal to the relative price ratio of the goods.

Explanation:

we know that the costomer MRS = Px/Py , where x and y are the two goods.

MRS(x,y) = MUx/MUy = Px/Py

Therefore, The marginal rate of substitution is equal to the relative price ratio of the goods.

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Suppose that a jewelry store found that when it increased prices by 10 percent, sales revenue increased by 3 percent. Which of t

Anna11 [10]

Answer:

The correct answer is Demand is inelastic, but not perfectly.

Explanation:

Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.

The elasticity of demand, also known as the elasticity-price of demand, is defined as the percentage change of the quantity demanded before a percentage change in the price.

4 0

4 years ago

Which of the following are established by ASC 280 as "enterprisewide disclosure" standards to provide more information about the

rusak2 [61]

Answer:

A. Both II and III

Explanation:

As the major customers information and the geographic areas information would be created by the ASC 280 as disclosure of enterprise wide standard that provide the information more related to the company risk. Also it is needed to the public entities to disclose the information with respect to the operating segments i.e. reportable in the finished financial statements set

Therefore the correct option is A.

8 0

3 years ago

Beckett, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are proje

FrozenT [24]

Answer:

Beckett, Inc.

Earnings Per Share:

a-1. Earnings Per Share:

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Earnings per share:

Recession = $24,000/8,000 $3.00

Normal = $30,000/8,000 $3.75

Expansion = $35,400/8,000 $4.43

a-2. Percentage changes in EPS:

Recession = -$0.75/$3.75 x 100 = -20%

Expansion = $0.68/$3.75 x 100 = 18.13%

b-1. EPS after recapitalization:

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Interest at 8% $8,000 $8,000 $8,000

Earnings after interest $22,000 $27,400 $16,000

Earnings per share:

Recession = $16,000/8,000 $2.00

Normal = $22,000/8,000 $2.75

Expansion = $27,400/8,000 $3.43

b-2. Percentage changes in EPS:

Recession: -$0.75/$2.75 x 100 = -27.27%

Expansion: $0.68/$2.75 x 100 = 24.73%

Explanation:

1. Data:

Market Value = $200,000

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Issue of debt for $75,000 with 8% interest

Proceeds to repurchase shares of stock.

Outstanding shares = 8,000

Ignore taxes

5 0

3 years ago

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $118,800 and expected direct labor hours of 10,800 for

Lisa [10]

Answer:

$15,730

Explanation:

<em>under absorption costing overheads are charged to product units using an overhead absorption rate. </em>

The overhead absorption rate is determined using the formula below:

<em>Overhead absorption rate is = Budgeted Overheads / budgeted Labour hours</em>

Factory overhead Absorption rate (OAR)= $118,800/10,800

= $11 per hour

Amount of 0verhead to charge Number number 117

= 11 × 1,430

= $15,730

6 0

3 years ago

You need $120,000 to start your business. You plan to invest $54,000 in the business and obtain financing from outside investors

bonufazy [111]

Answer:

45%

Explanation:

54/120

8 0

3 years ago