Answer: Minimum efficient scale is 8 units.
Explanation:
Given that,
Cost function: C(q) = 64 + 
Marginal cost function: MC = 2q
Average cost: AC = 
= 
= 
The minimum efficient scale is at a point where MC = AC
2q =
Therefore, minimum efficient scale is 8 units.
Answer:
A) disclose to the seller that he has a license and inform his broker of the transaction
Explanation:
Even though Sam is trying to purchase the property for himself, he must still inform the seller about his broker status. It probably wouldn't affect the sale in any way, but the obligation to disclose the information exists.
The same applies to Sam's broker, even though the transaction will not generate any commission, he still has to inform about it.
Answer:
Correll Company
a. Yes State R residents who purchased Firm L (out-of-state) merchandise owe use tax on their purchases.
b. State R would collect $1,080,000 additional revenue ($18 million * 6%) if Correll was required to collect the use tax at the point of sale and then remit the tax collected to State R.
Explanation:
a) Data and Calculations:
Cost of merchandise to customers in State R = $18 million
State R's sales and use tax on the purchase and consumption of retail goods within the state = 6%
Amount that Correll could collect for State R = $1,080,000 ($18 million * 6%)
b) Note that Correll (Firm L) collecting the State R use tax does not affect State R residents' legal liability to pay the use tax. Unfortunately, not many people actually remit their self-assessed use tax.
keep our biases from limiting our solutions.
Answer:
See below
Explanation:
a. Operating income statement for the year ended December 31, 2019
Net sales $645,000
Less: Cost of goods sold ($367,650)
Gross profit $277,350
Less: Expenses
Selling, general, administrative expenses ($142,100)
Other selling expenses ($14,600)
Advertising expense ($47,600)
Operating income $73,050
b.
Operating income $73,050
Less:
Income tax expense ($25,568)
Income from continuing operations before taxes $47,482
Loss from discontinued operations, net of savings $38,133 ($14,400)
Net income $33,082
