Answer:
B) induces buyers to consume less, and sellers to produce less.
Explanation:
Taxes are a necessary evil since they always increase the price of the goods and services that consumers buy and decrease the amount of money that producers receive from selling their goods and services. But taxes are necessary and unavoidable.
But once a market assumes all the effects of existing taxes it reaches an equilibrium price that both consumers and producers are satisfied with. If a new tax is levied than the deadweight losses are greater since consumer surplus and producer surplus are both reduced. This will lead to a reduction in the incentive that both consumers and producers have to engage in transactions. Many times consumers will substitute heavily taxed goods for other goods since they feel they are getting more from consuming those goods (consumer surplus). The same happens to producers, many producers will change their heavily taxed goods for other goods.
If the price elasticity of demand or supply of a certain good is large (elastic demand and supply), the deadweight loss will be greater.
Answer: below
Explanation:
- The sawdust should be sold as is without being processed into Presto
Logs.
- The pieces of unfinished lumber should be processed
Answer:
The process cost summary is given below.
A-Total Material Cost = $22,500
B-Total Conversion costs = $95,625 (45,625+50,000)
C-Units transferred out = 40,000
D-Ending Inventory = 10,000
E-Equivalent units of material = 45,000
F-Equivalent units of conversion costs = 42,500
G-Equivalent cost per unit of material = $0.5 (A/E)
H-Equivalent cost per unit of conversion costs = $ 2.25 (B/F)
I-Equivalent cost per unit = $2.75 (G+H)
J-Cost of inventory transferred = $ 110,000 (I*C)
K-Cost Of Ending Inventory = $ 8,125 (H*(F-C) + (5000*0.5))
Answer:
The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %
Explanation:
Contribution Margin = Contribution ÷ Sales
Where,
<em>Contribution = Sales - Variable Costs</em>
where,
Sales :
Sales = $ 900,000
Number of Books Sold = $ 900,000 ÷ $50
= 18,000 books
Variable Costs Calculation :
Cost of goods sold $630,000
Variable selling expenses ($5 × 18,000 books) $90,000
Variable administrative expenses( 4% × $ 900,000) $36,000
Total Variable Costs $756,000
Therefore,
Contribution Margin = $756,000÷ $ 900,000
= 0.84 or 84 %
<span>The functional distribution of income shows the distribution of income among factors of production and the personal distribution of income shows the distribution of income amonghouseholds.
The function distribution is attributed to the company performance, so it does look in to resources and the all levels of staff where as the personal distribution is associated with a single individual who is concerning towards his household.</span>
