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3 years ago

Economists typically assume that the owners of firms wish to

Business

2 answers:

faltersainse [42]3 years ago

8 0

Answer: Maximize profits

Explanation: The basic assumption an economist make is that the owners of a firm always works with the intent of maximizing their profits. As per this approach, the producers in the market determine their prices, inputs and outputs in such a way that it leads to highest profits.

Hence, from the above we can conclude that the right option is C.

zepelin [54]3 years ago

8 0

Answer:

The correct answer to the following question is option C) maximize profit .

Explanation:

When talking about the owners of the firms, economists usually assumes that the main goal of the owners is to maximize profit. Now if this was the case of company , the answer would have been different ( like maximizing shareholders wealth or etc ) but since owners are separate from company, as a company is a separate legal entity, so it won't be wrong to say for he owners , the profit is the main aim.

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Lori purchased a home for $250,000 with an additional $5,000 in related purchase costs and then added a garage at a cost of $25,

Tanzania [10]

Answer: $10,000

Explanation:

If you purchase a house and pass the ownership test of having lived in the house for at least 2 years in the past 5, you can exclude $250,000 from the capital gains as a single person.

Lori passes the ownership test and so can claim the tax exclusion.

Capital gain:

= Cash received - Purchase costs

= (575,000 - 35,000) - (250,000 + 5,000 + 25,000)

= $260,000

After claiming exclusion of $250,000

= 260,000 - 250,000

= $10,000

3 0

3 years ago

Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hou

777dan777 [17]

Answer:

Selling price= $10,632

Explanation:

First, we need to calculate the predetermined overhead rate:

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

Predetermined manufacturing overhead rate= (307,200/48,000) + 2.8

Predetermined manufacturing overhead rate= $9.2 per direct labor hour

Job X941:

Total direct labor-hours 300

Direct materials $ 600

Direct labor cost $ 5,500

Now, we can determine the total cost of Job X941:

Total cost= 600 + 5,500 + 300*9.2

Total cost= $8,860

Finally, the selling price:

Selling price= 8,860*1.2

Selling price= $10,632

7 0

4 years ago

Billy's is currently an all equity firm that has 115000 shares of stock outstanding at a market price of $36.22 a share. The fir

Len [333]

Answer:

So, Break-even EBIT is $265,643.45

Explanation:

Let Break-even EBIT be $x

Number of shares outstanding = 150,000

Current Price of share = $39.36

EPS = EBIT / Number of shares outstanding

EPS = $x / 150,000

Levered Plan:

Value of Debt = $100,000

Interest Rate = 9.6%

Interest Expense = 9.6% *$100,000 = $9600

Number of shares repurchased = $100,000 / $39.36

Number of shares repurchased = $2,541

Number of shares outstanding = 150,000 - 2,541

Number of shares outstanding = 147,459

EPS = (EBIT - Interest Expense) / Number of shares outstanding

EPS = ($x - $9600) / 147,459

EPS under All equity plan = EPS under levered plan

$x / 150,000 = ($x - $9600) / 147,459

147,459 * $x = 150,000 * $x - $675,000,000

$675,000,000 = 2,541 * $x

$x = $265,643.45

So, Break-even EBIT is $265,643.45

3 0

4 years ago

For Coronado Industries, sales is $3000000, fixed expenses are $700000, and the contribution margin ratio is 36%. What are the t

anygoal [31]

Answer:

Variable cost= $1,920,000

Explanation:

Giving the following information:

Sales= $3,000,000

Contribution margin ratio= 0.36

The contribution margin ratio is the dollar remaining after deducting from sales of the variable component. In 1 dollar, the contribution margin is $0.36.

In this case:

Variable cost= sales*(1-Contribution margin ratio)

Variable cost= 3,000,000*0.64

Variable cost= $1,920,000

4 0

3 years ago

On July 15, 2021, the Nixon Car Company purchased 2,100 tires from the Harwell Company for $40 each. The terms of the sale were

SOVA2 [1]

Answer:

The journal entries are shown below:

Explanation:

The journal entries are shown below:

On July 15

Purchases (2,100 × $40) $84,000

To Accounts Payable $84,000

(Being the purchase is recorded)

On July 23

Account payable $84,000

To Purchase discount $2,520 ($84,000 × 3%)

To Cash $81,480

(Being the payment is recorded)

On August 15

Account payable $84,000

To cash $84,000

(Being the payment is recorded)

7 0

4 years ago