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3 years ago

The Coase theorem states that

Business

1 answer:

serg [7]3 years ago

8 0

Answer:

a. in the absence of transaction costs, private parties can solve the problem of externalities on their own.

Explanation:

The Coase Theorem is a theorom used in economics that states that when there are complete competetive markets with no transaction costs, an efficient set of inputs and outputs to and from production-optimal distribution will be selected. It is a method of tackling the inefficiency caused by the externality by awarding property rights to the externality to one party and allowing the other parties to bargain their way to an efficient solution.

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Zachary Corporation expects to incur indirect overhead costs of $163,150 per month and direct manufacturing costs of $19 per uni

Arlecino [84]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated overhead cost a month= 163,150

Direct manufacturing costs= $19 per unit.

Estimated production in units

January= 4,800

February= 8,600

March= 4,600

April= 7,100

Total= 25,100 units

Total overhead= 163,150*4= $652,600

A) To calculate the estimated manufacturing overhead rate we need to use the following formula:

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

Estimated manufacturing overhead rate= 652,600/25,100= $26 per unit

B) To allocate overhead, we need to use the following formula:

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

January= 26*4,800= $124,800

February= 26*8,600= $223,600

March= 26*4,600= $119,600

April= 26*7,100= $184,600

C) The total cost per unit is calculated using the allocated overhead and the direct manufacturing cost per unit.

Total cost per unit= unitary overhead + direct manufacturing cost per unit

Because the unitary allocated overhead and direct manufacturing cost per unit remain constant during the four months, the total cost per unit is the same.

Total cost per unit= 26 + 19= $45

5 0

4 years ago

If a stock is purchased for $100 per share and held one year, during which time a quarterly dividend of $1.5 is paid, each quart

xenn [34]

Answer:

Total yield or rate of return is 0.36 or 36%

Explanation:

To calculate rate of return which is also the total yield on the stock, we will use the following formula,

Total Yield = (D + C) / P0

Where,

D represents dividends paid by the stock during the year
C is the capital appreciation(pr depreciation) or rise(or fall) in the price of the stock as compared to the purchase price
P0 is the purchase price or price in Year 0

Total dividends for the year = 1.5 * 4 = $6

C = 130 - 100 = $30

Total Yield = (6 + 30) / 100

Total yield = 0.36 or 36%

7 0

3 years ago

A marketing manager targeting Generation Y should be aware that this group is turned off by:A) the "soft sell".B) overt branding

AysviL [449]

Answer:

B) overt branding practices

Explanation:

Generation Y is the group of people who were born between 1990s to early 2000s. Probably most commonly known as millennials.

Statistics shown that when it come to choosing a product, millennial tend to choose the individuals that they can trust/admire rather than overt branding practices. This is why online influencers market is really booming among this demographic.

On top of that ., They value the type of advertisement that can objectively define the negative and positive characteristics of a certain product rather than advertising it as if it's 'the best product ever' like commonly done by most companies in the past.

7 0

3 years ago

Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its act

ExtremeBDS [4]

Mayonnaise is delicious, agree? Yes indeed.

7 0

3 years ago

Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at

balandron [24]

Answer:

Transactions Units Unit Cost

a. Inventory, Beginning 300 $ 14

b. Purchase, April 11 950 12

c. Purchase, June 1 850 15

d. Sale, May 1 (sold for $42 per unit) 300

e. Sale, July 3 (sold for $42 per unit) 630

f. Operating expenses (excluding income tax expense), $18,200

1 and 2) When you use a periodic inventory method, cost of goods available for sale and ending inventory are the same. They differ only when you use a perpetual inventory.

ending inventory = 1,170 units

Ending inventory under FIFO:

$28,350 - $11,760 = $16,590

Ending inventory under LIFO:

$28,350 - $13,710 = $14,640

Ending inventory under weighted average:

$28,350 - $12,555 = $15,795

3) total units sold = 930 units

COGS under FIFO:

(300 x $14) + (630 x $12) = $11,760

COGS under LIFO:

(850 x $15) + (80 x $12) = $13,710

COGS under weighted average:

($28,350 / 2,100) x 930 = $12,555

4) Income statement under FIFO

Sales revenue $39,060

COGS ($11,760)

Gross profit $27,300

Operating expenses ($18,200)

Operating income $9,100

Income statement under LIFO

Sales revenue $39,060

COGS ($13,710)

Gross profit $25,350

Operating expenses ($18,200)

Operating income $7,150

Income statement under weighted average

Sales revenue $39,060

COGS ($12,555)

Gross profit $26,505

Operating expenses ($18,200)

Operating income $8,305

6) FIFO minimizes operating income, therefore, minimizes income tax expense.

4 0

4 years ago