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kirill115 [55]
3 years ago
11

Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1

per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
Business
1 answer:
Vladimir [108]3 years ago
5 0

Answer:

The decrease in the effective price received by sellers is between $0.51 and $1.

Explanation:

Given the demand for picture = Inelastic

The supply of picture frames = highly elastic

Levied tax on picutre frames = $1

It is given that the demand for the frames is highly inelastic therefore the response of the buyer will be less. That means the proportionate change in demand will be lower than the proportionate change in the price of a commodity. Thus, the answer will be between $0.50 and $1.

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The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion re
storchak [24]

Answer:

$109,688.89

Explanation:

According to the scenario, computation of given data are as follows,

Formula for Net present value are as follows,

NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - (1+r)^{-n}) ÷ r + Net working capital ×(1+r)^{-n}

Where, r = rate of return

n = number of years

By putting the value, we get

NPV = -28,000 - 2,800 + 32,500 × ( 1 - (1+0.14)^{-7}) ÷ 0.14 + 2,800 × (1+0.14)^{-7}

By solving the above equation, we get

NPV = $109,688.89

8 0
3 years ago
During its first year of operations, Silverman Company paid $12,385 for direct materials and $10,600 for production workers' wag
Bingel [31]

Answer:

Finished goods inventory final balance= 12, 495

Explanation:

PRODUCTION COST COMPONENTS

  • Direct materials 12,385  
  • Direct work 10,600  
  • Lease and utilities 9,600

TOTAL PRODUCTION COST = 32,585

TOTAL UNITS PRODUCED = 6,650

UNIT COST= (Total Production Cost / Total Units Produced) = 32,585 / 6,650 = 4.9  

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 6,650 – 4,100 = 2,250

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,250 * 4.9 = 12,495

4 0
3 years ago
A holder of Rainbow Funds convertible bonds with a $1,000 par and a $1,100 price can convert the bond to 25 shares of common sto
omeli [17]

Answer:

22.22%

Explanation:

Currently Rainbow's stocks are priced at $36 per stock.

If the holder can convert his $1,100 bond into 25 stocks, that means that each stock should be worth at least $44 (= $1,100 / 25).

So the current stock price should increase by $8 (= $44 - $36) in order for a trade to be attractive, $8 represents a 22.22% increase (= ($8 / $36) x 100)

7 0
3 years ago
Laurel, Inc., and Hardy Corp. both have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are pric
cestrela7 [59]

Answer:

Laurel bond % change = -6.6%

Hardy bond % change = -16.3%

Explanation:

current bond price $1,000

interest rate 7%

Laurel bond matures in 4 years, 8 semiannual payments

Hardy bonds matures in 15 years, 30 semiannual payments

if market interest increases to 9%

Laurel bond:

$1,000 / (1 + 4.5%)⁸ = $703.19

$35 x 6.59589 (annuity factor, 4.5%, 8 periods) = $230.86

market price = $934.05

% change = -6.6%

Hardy bond:

$1,000 / (1 + 4.5%)³⁰ = $267.00

$35 x 16.28889(annuity factor, 4.5%, 30 periods) = $570.11

market price = $837.11

% change = -16.3%

3 0
3 years ago
Marianna has been returning from her lunch break 30 minutes late for the past 2 weeks. When her manager confronts her about it,
Arisa [49]

Answer:

d. Has the company applied its rules, orders, and penalties evenhandedly and without discrimination to all employees?

Explanation:

The seven tests for Just Cause are the following:

  1. Adequate warning
  2. Reasonableness
  3. Completeness of investigation
  4. Objectivity of investigation
  5. Proof of infraction
  6. Uniformity of the rules application (option D refers to this specific Just Cause test)
  7. Reasonableness of discipline.

The Just Cause tests are used to determine if any disciplinary or termination action was fair, and not just because the employer or supervisor wants to.

7 0
2 years ago
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