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At a price of $200, a cell phone company manufactures 100000 phones. At a price of $300, the company produces 300000 phones. Wha

valkas [14]

Answer:

2.5

Explanation:

P1=$200

P2=$300

S1=100000

S2=300000

The percentage change in price is:

$\Delta P =\frac{300-200}{\frac{200+300}{2}}=0.4=40\%$

The percentage change in supply is:

$\Delta S =\frac{300000-100000}{\frac{100000+300000}{2}}=1=100\%$

The price elasticity of supply is given by:

$E=\frac{\Delta S}{\Delta P}=\frac{100\%}{40\%}=2.5$

The price elasticity of supply is 2.5.

4 0

3 years ago

Which of the following is not a business entity

notka56 [123]

Um what’s the answer choices?

4 0

3 years ago

Fred contributes cash of $350,000 to Strumble Partnership for his 50% interest in the partnership. For his 50% interest Gary con

n200080 [17]

Answer:

Gary's Basis in the partnership interest is $155,000

Explanation:

Particulars Amount ($)

Adjusted Basis Of Land 250000

Mortage*Share In Percentage ($200000*50%) (100000)

Additional Borrowing*Share In Percentage ($50000*50%) (25000)

#Difference*Share In Percentage ($100000-$40000)*50% 30000

Basis 155000

Difference:

Net Income 100000

Distribution Of Each Partner*2 ($20000*2) (40000)

8 0

3 years ago

One bond has a coupon rate of 5.4%, another a coupon rate of 8.2%. Both bonds pay interest annually, have 13-year maturities, an

Gekata [30.6K]

Answer:

a. rate or return bond 1 6.6% bond 2 7.71%

b. Does the higher-coupon bond give a higher rate of return? yes

Explanation:

bond 1 has a coupon rate of 5.4%

bond 2 has a coupon rate of 8.2%

yield to maturity formula = {C + [(Face value - market value) / n]} / [(Face value + market value) / 2]

assume bond 1's face value = $1,000

coupon = 54

n = 13

YTM = 7.5%

0.075 = {54 + [(1,000 - M) / 13]} / [(1,000 + M) / 2]

0.075 x [(1,000 + M) / 2] = 54 + [(1,000 - M) / 13]

0.075 x (500 + 0.5M) = 54 + 76.92 - 0.0769M

37.50 + 0.0375M = 130.92 - 0.0769M

0.0375M + 0.0769M = 130.92 - 37.50

0.1144M = 93.42

M = 93.42 / 0.1142 = $818.04

rate of return = $54 / $818.04 = 0.066 = 6.6%

assume bond 2's face value = $1,000

coupon = 82

n = 13

YTM = 7.5%

0.075 = {82 + [(1,000 - M) / 13]} / [(1,000 + M) / 2]

0.075 x [(1,000 + M) / 2] = 82 + [(1,000 - M) / 13]

0.075 x (500 + 0.5M) = 82 + 76.92 - 0.0769M

37.50 + 0.0375M = 158.92 - 0.0769M

0.0375M + 0.0769M = 158.92 - 37.50

0.1144M = 121.42

M = 121.42 / 0.1142 = $1,063.22

rate of return = $82 / $1,063.22 = 0.07712 = 7.71%

8 0

3 years ago

Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified

Alborosie

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $ 800,000 per year and variable costs of $ 13,000 per standard unit produced. McKinney would have annual fixed costs of $ 920,000 and variable costs of $ 12,000 per standard unit. The finished items sell for $ 29,000 each.

Costs:

Bonham= 800,000 + 13,000*x

McKinney= 920,000 + 12,000*x

1) 800,000 + 13,000*x=920,000 + 12,000*x

1,000x=120,00

x=120 units

2) Because Bonham has a higher variable cost, from the indifference point and below, it generates a higher profit. From 120 units and more it generates less profit than McKinney.

3) Break-even point= fixed costs/ contribution margin

Bonham:

Break-even point= 800,000/(29,000 - 12,000)= 47 units

McKinney:

Break-even point= 920,000/(29,000-13,000)= 58 units

6 0

2 years ago