Answer:
the derived demands would most likely be increased.
Explanation:
When the new high school opened next to the fast food resturant i.e. popular so here it increased the consumers for that restaurant also the majority of the consumers would be the students only as it near by the school. Also the price should be cheap so that it can be easily afforded by the students
Therefore the derived demand should be likely to rise
Explanation:
The journal entries are as follows
1. Raw material inventory $5,100
To Account payable $5,100
(Being the raw material is purchased on account)
2. Factory labor $5,100
To Factory wages payable $1,700
To Payroll tax payable $2,900
(Being the factory overhead cost is recorded)
3. Manufacturing overhead $2,900
To Utilities payable $2,900
(Being the overhead cost is recorded)
Answer:
The answer is consumer's surplus
Explanation:
Consumer's surplus is the difference between what the consumer or buyer is willing to pay and the amount he or she eventually paid.
For example, Mr A is willing to pay $100 for a product and the producer is willing to sell for $90. After much negotiation between mr A and the seller, he eventually paid $85. What he paid was lower than what he was willing to pay before.
So the consumer surplus is $100 - $85 = $15
Answer:
The value of shareholders' equity is -$300
Explanation:
Shareholders' equity is the corporation's owners' residual claim on assets after debts have been paid.
Total assets= Total liability + shareholders' equity
Shareholders' equity = Total assets - Total liability
Shareholders' equity = $5,800 - $6,100
Shareholders' equity = -$300
Answer:
The required return for the new project is 6.87%
Explanation:
In order to calculate the required return for the new project we would have to calculate the Weighted Average Cost of Capital (WACC) adjusted by risk adjustment factor
.
The Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt x Weight of Debt] + [Cost of equity x Weight of Equity]
After -tax Cost of Debt = 3.40%
Cost of Equity = 10.80%
Weight of Debt = 0.39
Weight of Equity = 0.69
Therefore, the Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt x Weight of Debt] + [Cost of equity x Weight of Equity]
= [3.40% x 0.39] + [10.80% x 0.69]
= 1.32% + 7.45%
= 8.77%
The required return for the new project = Weighted Average Cost of Capital – Risk Adjustment Factor
= 8.77% - 1.90%
= 6.87%
The required return for the new project is 6.87%
