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3 years ago

Question 3 of 10

Business

1 answer:

Varvara68 [4.7K]3 years ago

4 0

Answer:

A. citizens tend to have greater confidence in the economy.

Explanation:

When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.

This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy

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Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major c

laila [671]

Answer:

The correct answer is D. externalities.

Explanation:

An externality is defined as that situation or group of situations that determine that a service good is not reflected at its real market price. In this example, the computer industry is so close that they do not know for sure the benefits they have when offering their goods, and it becomes an advantage in the sense that due to its close location it is possible to establish agreements to manage prices and not enter into direct market competition.

7 0

3 years ago

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow

avanturin [10]

Answer:

Net income will be $352,500 more if the company continues with Luxury watches only.

Explanation:

Since the company discontinues Sporty watches operation, the company's variable cost is decreasing. However, the fixed expenses remain same as the company will use the space for producing Luxury watches. The effect of operating income will be as follows:

Westfall Watch

Income Statement (Contribution Margin approach)

Particulars $

Sales Revenue [$400,000+(400,000 x 250%)] 1,400,000

Less: Variable expenses

[$255,000 + ($255,000 x 250%)] (892,500)

Contribution Margin 507,500

Less: Fixed Cost (80,000)

Net Income 427,500

Therefore, the net income will be $427,500 which is $(427,500 - 75,000) = $352,500 more.

6 0

3 years ago

Guthrie Enterprises needs someone to supply it with 210,000 cartons of machine screws per year to support its manufacturing need

vlada-n [284]

Answer:

$6.9807 per carton

Explanation:

210,000 cartons of machine screws

equipment cost $2,650,000

depreciation per year = ($2,650,000 - $220,000) / 5 = $486,000

fixed manufacturing costs $705,000 per year

variable costs per carton = $9.51 x 210,000 = $1,997,100

initial investment in net working capital $375,000

tax rate 22%

discount rate 10%

price per carton?

initial investment = -$3,025,000

CF₁ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₂ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₃ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₄ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₅ = [(R - $705,000 - $486,000) x 0.78] + $486,000 + $220,000 + $375,000 = 0.78R + $152,020

$3,025,000 = (0.78R - $442,980) / 1.1 + (0.78R - $442,980) / 1.1² + (0.78R - $442,980) / 1.1³ + (0.78R - $442,980) / 1.1⁴ + (0.78R + $152,020) / 1.1⁵ = 0.709R - $402,709 + 0.645R - $366,099 + 0.586R - $332,817 + 0.533R - $302,561 + 0.484R + $94,392

$3,025,000 = 2.957R - $1,309,794

$4,334,794 = 2.957R

R = $4,334,794 / 2.957 = $1,465,943.19

total revenue = $1,465,943.19

revenue per carton = $1,465,943.19 / 210,000 = $6.98

4 0

4 years ago

Which of the following completes the argument against deregulation of U.S. banks that began with the phrase: "if banks competed

Nina [5.8K]

Answer:

<em>A. They might also compete to make riskier loans, potentially imperiling the safety of the banking system.</em>

Explanation:

6 0

3 years ago

Charles is a consultant living in a rented apartment. Which of the following statements would represent a logical position for h

grandymaker [24]

Can I please get the multiple choices?

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3 years ago