Answer:
Barber's Return on Equity (ROE) is 1.28%
Explanation:
The formula to compute the ROE of Barber is:
ROE = Net Income / Shareholder's Equity
= $250,000 / $195,000
= 1.28%
It is a measure of the profitability ratio which evaluates the firm ability for generating profits from investment of shareholders.
Working Note:
Shareholder Equity of Barber = Beginning capital - Withdrew amount
= $285,000 - $90,000
= $195,000
Answer:
The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.
Explanation:
Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.
Thus, <em>metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.</em>
Unexpectedly high inflation tends to hurt lenders the most. When lenders lend money, it is valuable , but the amount of money that must be returned to him/her is fixed. Over time, the value of the money keeps depreciating and finally when the borrower does return the money, the value decreases to a very small amount, which is not worth much. For example, let's say a borrower borrows money from a lender to buy a car. With time, the value of money depreciated so much that when the borrower finally returns the money, the same amount of money is not even worth buying a box a matches!
Question Completion:
The manufacturing overhead charge per hour is $24.
Answer:
The manufacturing overhead that would be charged to 16 portraits using the cumulative average approach is:
$336.
Explanation:
a) Data and Calculations:
Time taken by new employee to make the first portrait = 8 hours
Time taken by employee to make the second portrait = 6 hours
Unit Hours Cumulative Hours Cumulative Average
1. 8.0 8.0 8.0
2. 6.0 14.0 7.0
Learning curve percentage = cumulative average/ hours for 1st unit = 7/8 hour * 100) = 0.875
This means that every unit produced, the time used reduces by 12.5% (1 - 0.875)
Therefore, the time to produce 16 units = 16 * 0.875 = 14 hours
Manufacturing overhead = 14 * $24 = $336
Answer:
A. consumer surplus is $20 larger than producer surplus.
Explanation:
Before getting to the little mathematics attached to this, there's a few terms we need to establish.
1. Consumer Surplus - This is simply the difference in price between what consumers are willing to pay and what they end up paying.
2. Producer surplus - This is simply the difference in price between what a producer is willing to accept for a given good or services and how much they actually end up selling the goods for.
Having established those terms,
In this situation,
Consumer surplus = amount consumer is willing to pay - amount consumer pays
CS = 300 - 200
CS = 100
Producer surplus = Amount received - minimum amount producer is willing to receive
PS = 200 - ( 60× 2)
PS = 200 - 120
PS = 80
The difference between consumer surplus and producer surplus
= 100 - 80
= 20
Therefore, consumer surplus is larger than producer surplus by $20.
