Answer:
"Assuming the market of soda has a regular downward sloping" demand curve and upward sloping supply curve, the tax will <u>be added to</u> the price paid by buyers and <u>not the price received by</u> the price received by sellers.
Explanation:
When demand is takes a downward slope it simply means the good is not sort after in the open market.When Supply curve takes an upward curve it means their is a great availability of production resources.
Tax incidence goes alongside the above theory,in cases where demand is low ,the tax will will be imposed on the buyer .But in the case where demand is high the tax is usually imposed on the producer.
Answer:
Allocated to the the word processing products would be$80
To the spreadsheet would be allocated revenues for $170
Explanation:
In order to calculate how much of the $250 revenue from the bundled product sale would be allocated to the the word processing products we would have to use the following formula:
allocated to the the word processing products= sold price suits- spreadsheet price
allocated to the the word processing products= $250-$170
allocated to the the word processing products=$80
To the spreadsheet would be allocated revenues for $170
Answer:
$4,817.17
Explanation:
The net present value is the present value of after tax cash flows substracted from the amount invested.
Using a financial calculator:
Cash flow for year zero = -$25,000
Cash flow for year one = -$8,000
Cash flow for year two = $16,000
Cash flow for year three = $16,000
Cash flow for year four = $16,000
I = 9%
NPV = $4,817.17
I hope my answer helps you.
Answer:
the demand curve is vertical
Explanation:
In the case when the demand is perfectly inelastic the demand curve would be zero and the elasticity of the demand would be zero also if there is a decrease in the price so the total revenue would be increased
Therefore as per the given situation, in the case when the demand is perfectly inelastic so the demand curve would be vertical
Answer:
$1,548,000
Explanation:
The computation of the total budgeted direct labor cost is shown below:
= Number of units to be produced × number of hours per unit × labor cost per hour
= 34,400 units × 3 hours × $15
= $1,548,000
We simply multiplied the number of units to be produced with the number of hours per unit and the labor cost per hour so that the accurate amount can come