Answer: D. Tim’s income level increases the more he works.
Explanation:
Tim's income for the year = Salary from working + Welfare
Lets say Tim works <u>200 hours</u> in a year.
His salary will be:
= 8 * 200 hours
= $1,600
Welfare:
70 cents off for every $1 so the amount they will deduct from Welfare is:
= 0.7 * 1,600
= $1,120
They will deduct this amount from the welfare of $15,000 and give Tim the rest.
Total income = 1,600 + (15,000 - 1,120)
= $15,480
Lets say Tim works <u>500 hours</u> a year.
Salary is:
= 500 * 8
= $4,000
Amount to be deducted for welfare:
= 0.7 * 4,000
= $2,800
Total income:
= 4,000 + (15,000 - 4,000)
= $16,200
Notice how the income goes up as Tim works more. This policy therefore provides a monetary incentive to work harder.
Demarcus's demand for apps is unit elastic
Explanation:
Unit elastic demand is an economic model which assumes that price changes would cause the necessary quantity to be equivalent in proportional.
There is dynamic competition that adjusts proportion to a change in price. A unit elastic demand is a result of price changes because customers have small alternatives that meet their needs.
Likewise, an elastic unit supply results in a price change when near supplies of substitutes are made.
Since a price change in the product corresponds to the same percentage growth in the amount demanded or given, the market elasticity is equal to-1 (Ed= -1) as well as the supply unit elasticity is equivalent to 1 (Es= 1).
Explanation:
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Answer: Please refer to Explanation
Explanation:
<u>Income Statement </u>
Profitable Company - <em>Bottom line in surplus</em>
Unprofitable Company - <em>Bottom line in Deficit</em>
The Bottomline in the Income statement refers to the Net Profit after all adjustments and deductions have been made. This is the figure that is taken to Retained Earnings and therefore funds the business. If the Bottomline is in Deficit that means the company made a loss and by definition are Unprofitable. The reverse is true.
<u>Balance Sheet</u>
Profitable Company - <em>Financially healthy</em>.
Unprofitable Company - <em>Financially failing</em>.
The Balance Sheet shows the health of a company by checking it's assets vs it's Liabilities and Equity. If it is shown for instance that there is too much debt in the company or that Current Liabilities are more than Current Assets, this shows that the company is not healthy and this is usually a symptom of an Unprofitable company. However a balance sheet showing strong Net Assets and a good Debt - Equity balance is considered healthy and is related to a Profitable Company.
<u>Statement of Cashflow.</u>
Profitable Company - <em>Inward flow of cash</em>
Unprofitable Company - <em>Outward flow of Cash</em>
The Statement of Cashflow (SCF) shows the actual amount of cash that a company has and spends. Other statements can include amounts for which cash has not been paid yet due to the Accrual system in Accounting. The SCF only deals with cash. A Profitable Company will have more cash coming in than going out because it would mean they are making profits as well as being in a strong financial position.
An Unprofitable Company on the other hand will show more cash leaving than coming in. This Outward flow of cash will signify that the company is spending more than it gets which is the sign of unprofitability.
Answer:
$110,000
Explanation:
Calculation for What is the machine's original cost basis that the firm records on the balance sheet
Machine's Original cost basis
Machine Cost $100,000
Add Sales Tax $7,000
Add Shipping Cost $3,000
Machine's Original cost basis $110,000
($100,000+$7,000+$3,000)
Therefore the machine's original cost basis that the firm records on the balance sheet will be $110,000
