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garik1379 [7]
3 years ago
13

Suppose the government imposes a $10 per month tax on cell phone service. If the demand curve for cell phone service is perfectl

y inelastic and the supply curve is upward-sloping, the monthly price for cell phone service will increase by:__________
a. $5.
b. $0.
c. $10.
d. less than $10
Business
1 answer:
dlinn [17]3 years ago
6 0

Answer:

c. $10.

Explanation:

Suppose the government imposes a $10 per month tax on cell phone service. If the demand curve for cell phone service is perfectly inelastic and the supply curve is upward-sloping, the monthly price for <u>cell phone service will increase by $10.</u>

As given, the government imposes a $10 per month tax on cell phone service, which means the price of cell phone services will be costlier and increases, however, the demand curve for cell phone service is perfectly inelastic, which mean price of the product does not have any impact on the demand of the product. Then it is given the supply curve is upward sloping, which reflects the higher price of cell phone service is needed to cover the higher marginal cost of production. Therefore, the monthly price for cell phone service will increase by $10.

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. Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario. He will borr
Sergio039 [100]

Answer:

6.04%

Explanation:

The weighted average cost of capital (WACC) can be described as the average rate that is expected that a business will pay to finance its assets to all holders of its security.

The weighted average cost of capital (WACC) can be estimated as the summation of the products of the weight of each loan in the total loan and their interest rate for this question as follows:

Total loan amount = $1,823 + $1,533 + $644 = 4,000

Weight of loan from Wendy = $1,823 / $4,000 = 0.46, or 46%

Weight of loan from Bebe = $1,533 / $4,000 = 0.38, or 38%

Weight of loan from Shelly = $644 / $4,000 = 0.16, or 16%

Weighted average cost of capital  = (46% * 4%) + (38% * 6%) + (16% * 12%) = 6.04%.

Therefore, the weighted average cost of capital for​ Eric is 6.04%.

7 0
3 years ago
Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at
Katena32 [7]

Answer:

b. 1,2,3,4

Explanation:

Lets first understand what relevant cost is? Relevant cost is any cost that influences the decision of a decision maker. Therefore, the first four items are relevant in the decision of whether to sell the X-547 or to further process it.

Explanation for each item is as follows:

1- Selling price of X-547:

The selling price is relevant because it will help to determine the revenue generated from selling X-547 at the split off point and which could also be used for comparative purposes, if suppose the decision of further processing is chosen.

2- Variable cost of processing X-547 into Xylene:

The variable cost of processing X-547 is indeed relevant too, because at this stage management is not in a position to take a decision until they explore the possibilities coming out of processing X-547, therefore, in order to come to a decision making position the management will need to know the variable cost of processing X-547, making it relevant in the decision.

3- The avoidable fixed costs of processing X-547 into Xylene:

There is sometimes a fear (i.e fear of increase in step-fixed costs as a result of processing a product or fear of loss of control over costs) felt by the management when trying to process certain products for further development therefore those fixed costs which can be avoided during processing X-547 can also influence (i.e encourage) the decision of further processing X-547, making it relevant.

4- The selling price of Xylene:

The last but not the least, the selling price of Xylene. If the management finds that if X-547 is further processed into Xylene and it sells at a highly favorable/lucrative price, creating a huge margin for them then definitely they would be encouraged to taking the decision of further processing it.

5 0
3 years ago
In January of 2018, the Phillips Company purchased a patent at a cost of $100,000. In addition, $10,000 in legal fees were paid
soldi70 [24.7K]

Answer:

The answer is: $113,000

Explanation:

By 2020, Phillips Company had already amortized $22,000 of the patent expenses (2 years x [10% x ($100,000 + $10,000)]). Since it lost its patent defense in 2020, it will now have to write off $113,000 ($88,000 pending amortization + $25,000 in legal fees) for the adjustment of its 2018 income.

5 0
3 years ago
True or False: Marginal analysis involves comparing the additional or extra benefit derived from consuming an additional unit of
Likurg_2 [28]

Answer:

True

Explanation:

Marginal - the dictionary meaning of such word is additional of anything. Here, in the given case, marginal analysis as per costing is the analysis of each additional revenue from each additional sale or production.

Marginal analysis does not consider fixed cost generally, as that is fixed and don not add on on additional units, within a standard range.

Thus, the statement stated here is True.

7 0
3 years ago
Miller Co. classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are ex
Kobotan [32]

Answer:

Budgeted selling and administrative expense= $38,600

Explanation:

Giving the following information:

Variable expenses are expected to be $13,400 in the first quarter, and $3,900 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $21,300 in each quarter.

We need to determine the budgeted selling and administrative expense for the second quarter:

Budgeted selling and administrative expense= (13,400 + 3,900) + 21,300

Budgeted selling and administrative expense= $38,600

3 0
3 years ago
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