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3 years ago

(Economics)How is the equilibrium price found using a supply and demand graph

1 answer:

7 0

On a graph, the point where the supply curve (S) and the demand curve (D) intersect is the equilibrium. ... At any other price, the quantity demanded does not equal the quantity supplied, so the market is not in equilibrium at that price.

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The June 1 work in process inventory consisted of 5,000 pounds with $16,000 in materials cost and $12,000 in conversion cost. Th

elixir [45]

Answer:

Equivalent units of production for materials: 42,500

Equivalent units of production for Conversion Costs : 37,700

Explanation:

Work in Process Beginning Inventory 5,000 pounds

Units started 37500

Less Ending Inventory 8000

Units Completed and Transferred Out 34,500 Pounds

Units % Of Completion EUP

Mater. C.C Materials C.C

Units Transferred 34500 100 100 34500 34500

Ending Inven. 8000 100 40 8000 3200

Total Units to accounts for 42,500

Total Equivalent Units 42,500 37,700

There are two ways of calculating equivalent units of Production . One is given above and the other is adding the percentages in the beginning inventory and started units. As we do not have the percentages of the units started therefore the above method is used.

3 0

4 years ago

Why might you complete a 1040 instead of a 1040EZ?

Ad libitum [116K]

The 1040EZ is easier with less to do. It is for single or married without children. The 1040 is for married with dependants ( children), business owners, etc.

4 0

3 years ago

Identifiable intangible assets would include all of the following except patents. goodwill. franchises. trademarks.

Nutka1998 [239]

Answer:

goodwill

Explanation:

As we know that the intangible assets are those assets which cannot be seen or even touched

It involved the assets such as patent, goodwill, trademark, franchisee, etc

But the asset which cannot be identifiable is goodwill

Therefore as per the given situation, the goodwill is the correct option

Hence, the second option is correct

6 0

3 years ago

Dunay Corporation is considering investing $750,000 in a project. The life of the project would be 11 years. The project would r

photoshop1234 [79]

Answer:

The Net Present Value is - $20324

Explanation:

We can use our financial calculator to work out the NPV using the cashflows from the different periods and using the discount rate given. Which is 18%.

We have 11 periods. Starting off with CF 0. ( CF = cashflow ) We will work in Thousands to make it easier to read and compute. $ ' 000

CF 0 Machine Investment (750) Working Capital Investment (25) Total=(775)

CF 1 160 inflow

CF 2 160 inflow

CF 3 160 inflow

CF 4 160 inflow

CF 5 160 inflow

CF 6 160 inflow

CF 7 160 inflow

CF 8 160 inflow

CF 9 160 inflow

CF 10 160 inflow

CF 11 160 inflow. 35 salvage value from machine. Working capital 25. Total Cashlow = 220

We now use our financial calculator and input these amounts into the calculator.

We start of by entering the data and hitting ENT and do so for every Cash flow. At the end we press 2nd function CFI on our calculator. We then enter the discount rate of 18%. and press down button to get to NPV and then press COMP.

We get an answer of -20,32400407

We now need to put the amount into thousands. Thus = -20324,004

rounded to the nearest dollar we get - $ 20324

7 0

3 years ago

Covent Gardens Inc. is considering two financial plans for the coming year. Management expects sales to be $300,000, operating c

Dominik [7]

Answer:

Assets = $200,000

For Plan A

25% debt = 200,000 * 25% = 50,000

75% equity = 200,000 * 75% = 150,000

The debt will generate 8.8% interest expense. Interest expense = 50,000 * 8.8% = 4,400

Income for the expected project under Plan A

Sales revenue 300,00

Operating cost 265,000

EBIT 35,000

Interest expense 4,400

EBT 30,600

Income tax 10,710

Net income $19,890

Times interest earned = EBIT /interest expense = 35,000 / 4,400 = 7.95. So, it achieve the requirement of 4.5 or above.

ROE for plan A = Net income / Equity = 19,890/150,000 = 0,1326 = 13.26%

Under Plan B

We will take as much debt as we can until Times interest earned = 4.5

EBIT / interest expense = Times interest earned

35,000/Interest expense = 4.5

Interest expense = 35,000/4.5

Interest expense = 7.777,78

Net income = (EBIT - interest) x (1- tax-rate)

Net income = (35,000 - 7,777.78) x (1-35%)

Net income = 17.694,443

Interest expense = Debt * Rate

Debt = Interest expense / Rate

Debt = 7,777.78/0.088

Debt = 88.383,86

Asset = Debt + Equity

200,000 = 88,383.86 + Equity

Equity = 200,000 - 88,383.86 =

Equity = 111,616.14

ROE for Plan B = Net income/ Equity = 17,694.443 / 111,616.14 = 0,15852943 = 15.85%

So, we compare both ROE

Plan A = 13.26%

Plan B = 15.85%

Difference = 2.59%

So therefore, using the Plan B will increase the ROE for 2.59%

5 0

3 years ago