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2 years ago

If supply is unchanged, but demand increases, we can conclude that the new equilibrium:

Business

1 answer:

den301095 [7]2 years ago

8 0

Answer:

The correct answer is option e.

Explanation:

The supply in the given example is assumed to be unchanged. Supply being constant an increase in demand will cause the demand curve to shift to the right. This rightward shift in the demand curve will intersect the supply curve at a higher point. This will cause an increase in the price as well as quantity of output in the market.

So, option e is the correct answer.

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A lease option is a clause that grants an option holder the right, but not the obligation, to renew the lease, cancel the agreem

kow [346]

Answer:

B. Increases the expected present value of lease cash flows to the owner

Explanation:

A lease option gives a right but not the obligation to the renter of the property to buy the said property at today's current market price upon the expiry of lease term.

Lease option is similar to an option contract, the difference being, here instead of securities, leased property serves as the underlying asset and instead of option premium, the renter pays a premium each year in addition to the rental charges.

Lease cash flows refer to the present value of future cash flows which the lessor/owner receives in the form of lease rentals plus the added premium each year.

The more the benefits under lease option clause, the higher the premium charged and thus, more would be the future receipts of owner which would increase the expected present value of lease cash flows to the owner.

8 0

3 years ago

Granny Gums has established a scholarship at the Martin College of Dentistry. She will make deposits into an endowment account t

OleMash [197]

Answer:

Scholarship Amount would be $45.68

Explanation:

Deposits into an endowment account that pays 12% per year

Year 0 Deposit $100

Year 1 Deposit $90

Year 2 Deposit $80

Year 3 Deposit $70

Year 4 Deposit $60

Year 5 Deposit $50

Year 6 Deposit $40

First find the present worth of the gradient deposits.

P = 100 + 90(P/A, 12%, 6) - 10(P/G, 12%, 6) = $380.69

A = 380.69 (0.12)

A= $45.68

3 0

2 years ago

Basic Break-Even Calculations Suppose that Larimer Company sells a product for $24. Unit costs are as follows: Direct materials

kati45 [8]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $24.

Unit costs are as follows:

Direct materials $4.98

Direct labor 2.10

Variable factory overhead 1.00

Variable selling and administrative expense 2.00

Total unitary variable cost= $10.08

Total fixed factory overhead= $26,500

Total fixed selling and administrative expense= $15,260.

a. Variable cost per unit= 4.98 + 2.1 + 1 + 2= $10.08

Unitary contribution margin= 24 - 10.08= $13.92

Contribution margin ratio= contribution margin / selling price

Contribution margin ratio= 13.92 / 24= 0.58

Variable cost ratio= unitary variable cost / selling price

Variable cost ratio= 10.08 / 24= 0.42

c. To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= (26,500 + 15,260) / 13.92

Break-even point in units= 3,000

d. Finally, the contribution margin income statement:

Sales= 3,000*24= 72,000

Total variable cost= 3,000*10.08= (30,240)

Contribution margin= 41,760

Total fixed factory overhead= (26,500)

Total fixed selling and administrative expense= (15,260)

Net operating income= 0

8 0

2 years ago

Which of the following falls in the category, "place" in the marketing mix?

inna [77]

Answer: trade shows

Explanation:

In marketing mix, the place is simply referred to as the process of movement if goods and services from the producer to the prospective consumers or consumers.

The place also refers to how ones good or service is bought and the place where it is being sold. The movement could be through intermediaries like distributors, the wholesalers, retailers etc.

In the above, the place will be the trade shows.

7 0

3 years ago

1. Of the 540 seniors at Lake City High School, 35% are going on a school trip. If the buses ordered for the trip seat 42 studen

bearhunter [10]

Answer: 1. 5 buses 2. 15%

Explanation:

7 0

3 years ago