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IrinaVladis [17]
2 years ago
11

​The manager of an ice-cream parlor decides to introduce a new ice-cream flavor in his Dallas, TX based restaurants to compare t

he sales of these restaurants to the ones with no new flavors. She decides to run a difference in difference approach. Which of the following is true?
(A) The first difference would be the difference in the sales of the Dallas stores before and after the introduction
(B) The second difference would be the difference in the sales in other stores before and after the Dallas stores introduced the new flavor
(C) The second difference would be the difference between the post introduction sales in the Dallas stores and the control group
(D) Only A&B
Business
1 answer:
Brilliant_brown [7]2 years ago
4 0

Answer:

(D) Only A&B

Explanation:

As with the introduction of new flavors, there will be an impact on sales, it might increase or it might decrease.

The impact would not only affect the store itself but would also impact on nearby stores.

Therefore, there will be difference in the sales count in value as well as units in current and previous months.

There will also be difference in between, the sales of stores nearby in previous month and current month after the launch of new flavor.

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3 years ago
Read 2 more answers
Suppose Congress is considering raising the top federal marginal tax rate from 35% to 40%. Senator Jones believes the elasticity
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Answer:

Explanation:

Solution-

According to Senator Jones, the elasticity of taxable income is larger, which means that due to a certain percentage rise in taxes, the taxable income rises by a greater percentage. Also, according to Senator Smith, the elasticity of taxable income is small, which means that due to a certain percentage rise in taxes, the taxable income rises by a smaller percentage.

(I) Under Senator Jones assumptions, due to rise in taxes, the taxable income has risen considerably as compared to Senator Smith assumptions. Thus the estimates of additional revenue from the tax increase will be larger under Senator Jones assumptions, compared to Smith's assumptions.

(ii) Since under Senator Jones assumptions, elasticity of taxable income is large. So due to rise in taxes, there is a significant proportional rise in taxable income under Jone's assumptions compared to Senator Smith assumptions. Thus the costs of the tax increase is borne more under Senator Jones assumptions , compared to Smith's assumptions.

3 0
3 years ago
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
yarga [219]

Answer:

$10,700

Explanation:

The unit product cost = $15 + $57 + $3 = $75

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Less :Variable cost

Variable cost of goods sold = 8,400 × $75 = $630,000

Variable selling and administrative = 8,400 × $7 = $58,800

Contribution margin = $151,200

Fixed manufacturing overhead = $132,000

Fixed selling and administrative expenses = $8,500

Net operating income = $10,700

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3 years ago
As a new​ controller, reply to this comment by a plant​ manager: "As I see​ it, our accountants may be needed to keep records fo
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The accountants are valuable to the organization because they monitor the monetary information that concerns the firm, they handle how cash come in and keep track of how they are spent, all these makes them valuable even to the extent of auditing information as regarding the firm. Managers might understand financial information either based on how they monitor what occurs in the organization or what they learnt in from college. But it's unsafe for the managers to handle financial situation without the aid of a professional accountant.

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3 years ago
What describes a lease provision that gives the tenant the right to extend the lease for an additional period of time and sets f
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Answer:

that;s

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