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vekshin1
3 years ago
13

The intention of a price floor is to help producers by setting a higher than equilibrium price. What is one unintended consequen

ce of this policy
Business
1 answer:
zloy xaker [14]3 years ago
5 0

Answer:

One unitended consequence of this policy is that if the price is above the equilibrium price then this will affect the market by producing black market, low importance to the product that has risen up in price and more importantly it will produce the demand of the product to fall down.

Explanation:

To begin with, the price floor is a method used in the microeconomics theory in order to give help to the producers from the government who are the ones who choose how to control and manipulate the price of the good. But this method tends to be very aggressive and not good at all if the price floor is set above the equilibrium price set by the market itself and that is because the producers will be offering a product that is much expensive in price and not worth in value at all so the demand for the product will fall and it will create a black market where the consumers who want to pay less will go there for even a product with less quality.

You might be interested in
A. Macarty Company's records indicate the following information for the year: Merchandise inventory, 1/1 $ 550,000 Purchases 2,2
cestrela7 [59]

Answer:

add all them and there u go

Explanation: so add 550,000 -2,50,000 + 3,100,000+600,000 -30%     hope that helps

8 0
3 years ago
Resource Room prints custom training material for corporations. The business was started January 1, 2017. The company uses a nor
nadya68 [22]

Answer:

Budgeted Overhead Cost          266,000          

Budgeted Labor Cost                   190,000          

Recovery rate                       =266000/190000          

Recovery rate per labor cost     1.40          

Actual Material                             158,000          

Actual labor                                       175,000          

WIP closing                         Material    Labor          

Job 11                                4,720    5,700          

Job 12                                 5,090    6,900          

Total                                  9,810    12,600          

Transfer to Finished= Total-WIP            

Actual Material                 148,190          

Actual labor                         162,400          

Category                    Finished    WIP           Total        

Material                             148,190     9,810          158,000        

Labor                             162,400     12,600   175,000        

Overhead-Recovered      227,360      17,640     245,000

@ 140% of labor        

Balance before                537,950       40,050     578,000

adjustment to overhead

under-allocation        

Option 1-Underallocated     2,200                                     2,200  

overhead (247200-245000)

     

Balance after adjusting      540,150       40,050     580,200

overhead under-allocation        

Option 2-Underallocated        2,042           158      2,200

overhead in overhead allocated rate

       

2200*227360/245000            

2200*17640/245000            

Balance before adjustment          537,950          40,050     578,000

to overhead under-allocation        

Balance after adjusting                 539,992          40,208     580,200  

overhead under-allocation          

g. the option 2 will be chosen because a careful look at the underallocated overhead is similar to 2017 so the charge should be levied on all activity

Explanation:

Budgeted Overhead Cost          266,000          

Budgeted Labor Cost                   190,000          

Recovery rate                       =266000/190000          

Recovery rate per labor cost     1.40          

Actual Material                             158,000          

Actual labor                                       175,000          

WIP closing                         Material    Labor          

Job 11                                4,720    5,700          

Job 12                                 5,090    6,900          

Total                                  9,810    12,600          

Transfer to Finished= Total-WIP            

Actual Material                 148,190          

Actual labor                         162,400          

Category                    Finished    WIP           Total        

Material                             148,190     9,810          158,000        

Labor                             162,400     12,600   175,000        

Overhead-Recovered      227,360      17,640     245,000

@ 140% of labor        

Balance before                537,950       40,050     578,000

adjustment to overhead

under-allocation        

Option 1-Underallocated     2,200                                     2,200  

overhead (247200-245000)

     

Balance after adjusting      540,150       40,050     580,200

overhead under-allocation        

Option 2-Underallocated        2,042           158      2,200

overhead in overhead allocated rate

       

2200*227360/245000            

2200*17640/245000            

Balance before adjustment          537,950          40,050     578,000

to overhead under-allocation        

Balance after adjusting                 539,992          40,208     580,200  

overhead under-allocation          

g. the option 2 will be chosen because a careful look at the underallocated overhead is similar to 2017 so the charge should be levied on all activity

3 0
3 years ago
Becca and Bob own a car rental business. Becca contributes 75 percent of the capital but does only 20 percent of the work, while
ale4655 [162]

Answer: Limited liabilities and partnerships

Explanation:

Limited liabilities mean that the partners within the firm are only liable to pay off their debts with the amount they had invested as capital in the company. Partnership is an agreement between certain number of partners to share the profit and loss of the company. In this case since there is a 50/50 allocation of profits and there are only 2 partners therefore, this is a limited liability partnership.  

4 0
3 years ago
Max is the marketing manager at the university bookstore. He is developing his marketing plans for the next school year. The boo
Mariulka [41]

<u>Solution and Explanation:</u>

  • the total sales of calendars is as follows:

7200 multiply with $5 each = $36000

  • In order to find out the profit, the toal of sales is to be subtarcted with costs. The given sales is $36000, costs is $19183

Thus, the total profit = $16817

95% of 10080 canot be taken in order to find out the correct number. 5% enrollment growth, is as follows:

10080 = 1.05 multiply "x"

thus, calculating x = 9600

  • The number of studnets are 9600 in the last semester out of which 7200 bought calendar.    7200 divide 9600 = 75.0 percent sales penetration.
8 0
3 years ago
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca
Flura [38]

Answer:

36%

Explanation:

For the computation of the company's return on equity first we need to follow some steps which is shown below:-

Step 1

Earnings before tax = EBIT - Interest

= $452,000 - $152,000

= $300,000

Step 2

Earnings after interest and taxes = Earnings before tax - Tax

= $300,000 - ($300,000 × 40%)

= $300,000 - $120,000

= $180,000

Step 3

Asset turnover ratio = Total revenue ÷ Total assets

3.6 = $4,000,000 ÷ Total assets

Total assets = $1,111,111.11

Step 4

Equity ratio = 1 - Debt ratio

= 1 - 0.55

= 0.45

Step 5

Total Equity = Equity ratio × Total assets

= 0.45 × $1,111,111.11

= $500,000

and finally

Return on Equity = Net income ÷ Equity

= $180,000 ÷ $500,000

= 0.36

or

= 36%

3 0
3 years ago
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