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AleksandrR [38]
3 years ago
12

Suppose the price of butter, a complement to bread, increases. At the same time, suppose the price of flour, a key ingredient to

the production of bread, falls. How ill both of these factors (the increase in the price of butter and the decrease in the price of four) affect the equilibrium price and quantity of bread? The equilibrium price of bread (Click to select and the equilibrium quantity of bread Click to select)
Business
1 answer:
Mrac [35]3 years ago
4 0

Answer:

Bread and butter are complimentary goods if the price of butter is increased then the demand for butter will decrease and since bread and butter are used together when the demand of one good is decreased, the demand of the other good will also be decreased and the price of bread will decrease.

Because of this demand curve will shift downward towards the left along with the supply curve.

If the price of flour is decreased it will decrease the price of the bread and the demand of the bread will be increased but again when bread and butter are to be used together then as the demand of butter is decreased then the demand of the bread will also be decreased and at the end the equilibrium price of the bread will decrease.

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sveta [45]

Answer:

a) commonly agreed-upon professional accounting standards in the United States

Explanation:

According to the Generally Accepted Accounting Principles (GAAP) it consist of accounting principles, rules, procedures that are followed companies to companies so that there financial statements considered to be valid.

Here, in the given question the option A is correct as it is agreed for the professional accounting standard that shows the Generally Accepted Accounting Principles (GAAP)

Hence, the correct option is A.

8 0
3 years ago
How does manufacturing create the multiplier effect?
MrRissso [65]

Answer:

For every $1.00 spent in manufacturing, another $2.79 is added to the economy

Explanation:

hope this helps

4 0
2 years ago
Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manuf
dimaraw [331]

Answer:

B. $106,000

Explanation:

Total budgeted manufacturing overhead for October = Budgeted variable manufacturing overhead + Budgeted fixed manufacturing overhead

Total budgeted manufacturing overhead for October = ($6.8 × 5,000 hours) + $72,000

Total budgeted manufacturing overhead for October = $106,000

5 0
3 years ago
Brick Co. has 170,000 shares of common stock outstanding at January 1, Year 5. On May 1, Year 5, it issued 30,000 additional sha
TiliK225 [7]

Answer:

the number of shares that Brick should use to calculate Year 5 diluted earnings per share is 202,000 shares.

Explanation:

Diluted Earnings per share takes into account the potential voting rights in the calculation of the Weighted Average Number of Common Stocks Outstanding.

<u>Weighted Average Number of Common Stocks Outstanding Calculation :</u>

Outstanding at beginning of the Year                                         170,000

Issued May 1 : 30,000 × 8/12                                                         20,000

Convertible cumulative preferred stock                                        12,000

Weighted Average Number of Common Stocks Outstanding 202,000

3 0
3 years ago
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 15 ​billion, respectively.
Stolb23 [73]

Answer:

Ford's weighted average cost of capital is 8.22 %

Explanation:

Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.

Calculation of WACC

WACC = Cost of equity + Cost of preferred​ stock + Cost of debt

Capital Source       Market Values     Weight      Cost      Total Cost

equity                         $ 7 ​billion          29.17%      13.6%       3.97 %

preferred​ stock         $ 2 ​billion            8.33%      12%          1.00 %

debt                           $ 15 ​billion         62.50%     5.2 %       3.25%

Total                          $ 24 billion                                          8.22 %

Cost of equity = Risk free rate + Beta × Risk Premium

                       =  4% + 1.2 × 8%

                       =  13.6%

Cost of preferred​ stock = Dividend/Market Price

                                       = $ 3/ $ 25 × 100

                                       = 12%

Cost of debt = interest × (1- tax rate)

                    = 8% × (1-0.35)

                    = 5.2 %

7 0
3 years ago
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