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luda_lava [24]
3 years ago
15

Suppose that the production of $500,000 worth of steel in the United States requires $100,000 worth of iron ore. The U.S. nomina

l tariff rates are 15 percent for steel and 5 percent for iron ore. Given this information, the effective rate of protection for the U.S. steel industry is approximately
Business
1 answer:
brilliants [131]3 years ago
3 0

Answer:

The effective rate of protection for the U.S. steel industry is approximately 17.5%

Explanation:

Mathematically, the effective rate of protection is calculated as follows;

e = (n-ab)/(1-a)

where n is the nominal tariff rate on the final product , a is the ratio of the value of the imported input to the value of the finished product and b is the nominal tariff rate on the imported input

Mathematically;

a = value of iron ore/value of steel = 100,00/500,000 = 1/5 = 0.2

From the question, we can see that nominal tariff rate for steel n = 15% = 15/100 = 0.15

The nominal rate for iron ore b = 5% = 5/100 = 0.05

So we substitute all of these into the equation of e above

e = {0.15-0.2(0.05)}/(1-0.2) = (0.15-0.01)/0.8 = 0.14/0.8 = 0.175 which is same as 17.5%

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John decided to leave his job and open a bookshop in the city center. He was working as an engineer before and getting an annual
marishachu [46]

Answer:

a) Calculate the implicit costs

Implicit costs are the opportunity costs, the earnings that John forgone for running his business. These are:

His $35,000 annual salary as an engineer.

His $60,000 savings earning a 7% interest rate, for a total annual return of $64,200,

So his total implicit costs are 35,000 + 64,200 = $99,200

b) Calculate the explicit costs.

The explicit costs are the things John has to actually pay money for while running his business: 20,000 for his worker + 15,000 for rent, and 10,000 for utilities = 45,000 in total.

c) Calculate the total cost.

Total costs = implicit costs + explicit costs

Total costs = 99,200 + 45,000

Total costs = 144,200

d) Calculate his profit/loss.

His accounting profit is the revenue he obtains from his business minus his explicit costs:

accounting profit = 210,000 - 45,000 = 165,000 profit

His economic profit is the revenue minus his total costs

economic profit = 210,000 - 144,200 = 65,800 profit

e) Should he continue to the business or go back to his job?

He should continue running his business because he is earning both an economic profit and an accounting profit compared with what he was earning as an engineer + his savings.

3 0
3 years ago
Bentley estimates manufacturing overhead of $3,251,600 for 2013 and will apply overhead to units produced based on 739,000 machi
saul85 [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated overhead= $3,251,600

Estimated machine-hours= 739,000

During 2013, Bentley used $1,640,000 of raw materials, paid $5,335,800 of direct labor, generated 734,000 machine hours, and produced 2,190,000 units.

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 3,251,600/739,000

Predetermined manufacturing overhead rate= $4.4 per machine hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4.4*734,000= $3,229,600

<u>Finally, we can determine the total cost and unitary cost:</u>

Total cost= 1,640,000 + 5,335,800 + 3,229,600= $10,205,400

Unitary cost= 10,205,400/2,190,000= $4.66 per unit

4 0
3 years ago
​A boy migrated from Honduras through Guatemala and Mexico, thenentered the United States without immigration documents, because
e-lub [12.9K]

Answer: Forced

                                   

Explanation: In simple words, forced migration refers to a process under which a particular community of people is forcefully dread out from their own country due to extremism of the one's in majority.

In the given case, the boy migrated from the country because his community was tortured there hence this case depicts forced migration.

8 0
3 years ago
The following costs were incurred in May: Direct materials Direct labor Manufacturing overhead Selling expenses Administrative e
Kaylis [27]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Direct materials= 33,000

Direct labor= 13,000

Manufacturing overhead= 23,000

The prime cost is the sum of total direct material and total direct labor. The conversion cost is the sum of direct labor and allocated overhead.

Prime cost= direct material + direct labor

Prime cost= 33,000 + 13,000= $46,000

6 0
3 years ago
The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.
viktelen [127]

Answer:

Please see below

Explanation:

a. A 5% stock dividend is declared and distributed when the market per share was $39.

Common stock par value($10) 500,000

Retained earning = 50,000 × 5% × 39

= $97,500

Common stock dividend distributed

50,000 × 5% × $10

= $25,000

See attached further explanations.

7 0
3 years ago
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