The amount of sin tax that will be paid by all of the mentioned parties will depend per country. In fact, in the US, sin tax may even differ per state so the price of consumers and producers will already factor in the percentage of sin tax that they will pay. As to why it will most likely not reduce the consumption, this is because these vices are generally addictive and already serve as habits for some people. Because of this, people will most likely not decrease their consumption significantly since they continuously look for it. In fact, they will be willing to pay more to get it.
Answer:
it expexts that this will increase sales and profits
Explanation:
Answer:
The correct answer is 23.86%.
Explanation:
According to the scenario, the given data are as follows:
Loan amount = $12,000,000
Time period = 12 months
Rate of interest = 21%
compensating balance = 12%
So we can calculate the effective rate of interest by using following method:
Effective rate of interest = (Loan amount × Interest Rate
) ÷ Loan amount × (1 – compensating balance )
By putting the value, we get:
= ( $12,000,000 × 0.21) ÷ ($12,000,000 × (1-0.12)
= 0.2386 or 23.86%
The demand of something means how the insistency or desire to purchase that item. When there is a shift in income, demand for goods change drastically. If the income level for a person rises, then the demand for goods that they may not have been able to afford before rises and the cheaper options decline. If the income shift drops, the demand for the goods previously affordable may go down, due to not being able to afford them anymore.
Answer:
higher than net income computed under variable costing when units produced are greater than units sold
Explanation:
Absorption costing and variable costing techniques are used to compute the accounting cost of various operation. The calculation procedures of both the techniques are different; that is why the results are different. The net income under absorption costing is higher because it takes into account the indirect expenses and indirect costs. Likewise, absorption costing technique also includes manufacturing or overhead cost.