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3 years ago

A shoe factory sells a certain brand of shoes for $50 per pair. After a celebrity

Business

2 answers:

vladimir1956 [14]3 years ago

5 0

Answer:

Hope this helps

crimeas [40]3 years ago

5 0

Answer:

Explanation:

The factory would most likely take advantage of this situation, and try to sell more of the shoes at a higher price, for the greater profit.

A,B and D do not make sense as the factory would then either be making less money or not profiting at all.

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If the interest rate on a savings account is 0.02%, approximately how much money do you need to keep in this account for 1 year

zavuch27 [327]

Answer:

$49,950

Explanation:

X = amount in account

Make (x times the interest rate) equal to the $9.99 you will need to earn to cover the fee.

.02%* x = 9.99

.0002x= 9.99 (Divide both sides by .0002)

x = $49,950

With such a small interest rate, you will need to have a large sum of money in order to earn enough to cover the fee.

8 0

3 years ago

Read 2 more answers

On January 1, 2005, Jambon purchased equipment for use in developing a new product. Jambon uses the straight-line depreciation m

notsponge [240]

Answer:

A. The total cost of the equipment.

Explanation:

Even if Jambon has not used the equipment in 2005 because it can only be used for the product that is to be developed in five years, Jambon still had to pay for the full cost of the equipment.

Because the equipment is laying idle, it is not depreciating. Therefore, the expense that Jambon is not incurring, is the depreciation expense associated with this equipment. This depreciation expense will only be seen in five years, when the product it was bought for is finally completed.

8 0

3 years ago

For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good fall

bezimeni [28]

Answer:

The income effect and substitution effect work in opposite directions and income effect is dominant.

Explanation:

In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.

The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.

In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.

A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.

8 0

3 years ago

Lone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The o

tigry1 [53]

Answer:

Differential analysis for 1 year

Keep old Change Differential

machine machine amount

sales revenue 191,000 191,000 0

depreciation expense -4,840 -22,760 -17,920

per year

direct materials -65,200 -65,200 0

direct labor -45,300 -15,100 30,200

power and -4,200 -7,200 -3,000

maintenance

taxes and -1,500 -5,000 -3,500

insurance

S&A expenses -45,300 -45,300 0

total 24,660 30,440 5,780

If the new machine is purchased, profits will increase by $5,780 every year.

Differential analysis for 5 years

Keep old Change Differential

machine machine amount

sales revenue 955,000 955,000 0

depreciation expense -24,200 -113,800 -89,600

per year

direct materials -326,000 -326,000 0

direct labor -226,500 -75,500 151,000

power and -21,000 -36,000 -15,000

maintenance

taxes and -7,500 -25,000 -17,500

insurance

S&A expenses -226,500 -226,500 0

total 123,300 152,200 28,900

If the new machine is purchased, profits will increase by $28,900 for the 5 year period.

6 0

3 years ago

recent monthly contribution format income statement: Sales$1,652,000 Variable expenses 628,880 Contribution margin 1,023,120 Fix

kati45 [8]

Answer:

Gatty Corporation

1. Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $580,000 $1,652,000

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $348,000 $1,023,120

Traceable fixed expenses $268,000 $320,000 $191,000 779,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $157,000 $(101,880)

2. Assuming these estimates are accurate and implemented, the company's net operating loss of $101,880 will decrease by $69,600 to $32,280.

Explanation:

a) Data and Calculations:

GATTY Corporation

Recent monthly contribution format income statement:

Sales $1,652,000

Variable expenses 628,880

Contribution margin 1,023,120

Fixed expenses 1,125,000

Net operating income (loss) $(101,880)

Segmented Income Statement for the most recent month

Division East Central West

Sales $422,000 $650,000 $580,000

Variable expenses as a percentage of sales 54% 26% 40%

Traceable fixed expenses $268,000 $320,000 $191,000

1. Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $580,000 $1,652,000

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $348,000 $1,023,120

Traceable fixed expenses $268,000 $320,000 $191,000 779,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $157,000 $(101,880)

Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $678,600 $1,750,600

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $446,600 $1,121,720

Traceable fixed expenses $268,000 $320,000 $220,000 808,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $226,600 $(32,280)

$(101,880)

$(32,280)

$69,600

4 0

3 years ago