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guapka [62]
3 years ago
10

Kit-N-Sit and Kittysitters are two cat-sitting services in Kent, Ohio. There are no other cat-sitting services, so the market is

considered to be a duopoly. According to the kinked demand curve theory, if Kit-N-Sit cuts prices, Kittysitters will
Business
1 answer:
r-ruslan [8.4K]3 years ago
4 0

Answer:

also cut its prices.

Explanation:

the kinked demand theory is based on the premise that prices in oligopoly or duopoly markets tend to be very rigid and the participating industries are not very responsive to price changes. I.e. competitors will tend to respond more to a price decrease than to a price increase. In this case, Kittysitters will only change their prices if Kit-N-Sit decreases them. Instead, if Kit-N-Sit increased their prices, Kittysitters would do nothing.

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During the current year, Esty Company replaced the roof on its manufacturing facility with a better roof that also extended the
vodka [1.7K]

Answer:

A

Explanation:

5 0
2 years ago
For most businesses, annual straight line depreciation expense on the company's building is what type of cost?
Rom4ik [11]

For most businesses, annual straight line depreciation expense on the company's building is fixed cost.

A fixed cost is one that does not change no matter how many units of a good or service are produced or sold. Fixed costs are expenses a company must pay regardless of the specific economic operations it does. As a result, fixed expenses are often indirect because they have nothing to do with how a firm produces any goods or services. Both fixed expenses and variable costs, which together make up a company's total costs, are common. It's common practice to reduce fixed expenses by using shutdown points.

Learn more about fixed costs here:

brainly.com/question/17100497

#SPJ4

6 0
1 year ago
On January 1, 2019, Moira, Inc. borrowed $100,000 on a 10-year 9% installment note payable to buy the Rosebud Motel. The terms o
finlep [7]

Answer:

$15,582

Explanation:

On this question, use the Time Value of Money Techniques to find the the Annual Instalment (PMT).The amount of annual installment can be calculated using a Financial Calculator as :

PV = $100,000

N = 10

I = 9 %

FV = 0

P/YR = 1

PMT = ?

Entering the data as shown in a financial calculator gives an annual instalment (PMT) of $15,582.

The payment journal would be :

Note Payable $15,582 (debit)

Cash $15,582 (credit)

Thus, this would be a debit to Notes Payable in the amount of $15,582.

3 0
3 years ago
The current dividend yield on CJ's common stock is 1.89 percent. The company just paid a $1.23 annual dividend and announced pla
belka [17]

Answer:

The required rate of return on this stock is 13.27%

Explanation:

The computation is shown below:

First, we have to determine the dividend growth and then the growth rate. Afterward, the final answer will come

Dividend growth rate = Next year dividend - current year dividend

= $1.37 - $1.23

= $0.14

Now the growth rate would be equal to

= (Dividend growth) ÷ (current year dividend)

= ($0.14) ÷ ($1.23)

= 11.38%

Now add the dividend yield to the growth rate

So, the required rate of return would be

= 11.38% + 1.89%

= 13.27%

8 0
3 years ago
A. A new operating system for an existing machine is expected to cost $684,000 and have a useful life of six years. The system y
melisa1 [442]

Answer:

NPV for A = $673,867.69

NPV for B = $418,923.12

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

For A

It is cash flows not income that is used to determine net present value.

Cash flow = net income + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($684,000 - $60,000) / 6 = $104,000

$200,000 + $104,000 = $304,000

Cash flow in year 0 = $-684,000  

Cash flow each year from year 1 to 5   = $304,000

Cash flow in year 6 = $304,000 + $60,000 = $364,000  

I = 10 %

NPV = $673,867.69

B

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($480,000 - $40,000) / 8 = $55,000

$110,000 + $55,000 = $165,000

Cash flow in year 0 = $-480,000  

Cash flow each year from year 1 to 7   = $165,000

Cash flow in year 8 = $165,000 + $40,000 = $205,000  

I = 10 %

NPV = $418,923.12

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

4 0
2 years ago
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