Answer:
It will lose revenue
Explanation:
An elastic demand (which are found in goods or services that have substitutes) moves proportionally to price changes.
It means that, if the price of the good rise, then the demand will diminish. The opposite works the same, if the price reduces, then the demand will grow.
On the other hand, elasticity refers to the impact of the prices on the demand of the goods and there are key factors that influence this relation:
- Necessity of the good (or product)
- The existence of substitutes goods or alternatives to those goods
- Time
Answer:
Explained below:
Explanation:
The following are the <u>disadvantages of a sole proprietorship:</u>-
1. In a sole proprietorship, there is no separation between business assets and personal assets.
2. When the owner dies, the business also ends as well unless the owner made a prudent estate plan which allowed the business to continue.
3. A sole proprietorship has no shareholders and cannot sell ownership in the company without changing its business structure. etc
Given that Jenny earned $44,500 in 2016.
Her contribution to the Social Security is given by: 6.2% of $44,500 = 0.062 x 44500 = $2,759
Her employer's contribution to the Social Security is given by: 6.2% of $44,500 = 0.062 x 44500 = $2,759
Her contribution to the medicare is given by: 1.45% of $44,500 = 0.0145 x 44500 = $645.25
Her employer's contribution to the Social Security is given by: 1.45% of $44,500 = 0.0145 x 44500 = $645.25
Therefore, her total FICA tax is 2(2,759) + 2(645.25) = $5,518 + $1,290.50 = $6,808.50
Answer:
$260
Explanation:
the cash flows associated to this project are:
year 0 = -$150
year 1 = $121
year 2 = -$242
year 3 = $665.50
the discount rate is 10%
using a financial calculator, the project's net present value (NPV) = $260
since the NPV is positive, then this project should be carried out
Answer:
Consider the following calculations
Explanation:
Step 1. Given information.
Asset Cost Adjusted Basis
--------------------------------------------------
Skidder 230,000 40,000
Driller 120,000 60,000
Platform 620,000 0
-------------------------------------------------
Total 970,000 100,000
Step 2. Formulas needed to solve the exercise.
Allocation for each asset = value sold * (adjusted basis / total)
Gain on sale = Sales price - Adjusted basis amount
Step 3. Calculation and Step 4. Solution.
Sales price is allocated on the basis of adjusted value.
- Skidder = 300.000 * 40.000/100.000 = 120.000
- Driller = 300.000*60.000/100.000 = 180.000
- Platform = 300.000*0/100.000 = 0
Gain on sale = Sales price - Adjusted basis amount
= 300.000 - (40.000 + 60.000 + 0)
= 200.000
