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AnnyKZ [126]
3 years ago
10

It costs Sunland Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit.

A foreign wholesaler offers to purchase 4400 units at $21 each. Sunland would incur special shipping costs of $2 per unit if the order were accepted. Sunland has sufficient unused capacity to produce the 4400 units. If the special order is accepted, what will be the effect on net income
Business
1 answer:
Triss [41]3 years ago
4 0

Answer:

Effect on income= $4,400 increase

Explanation:

Because it is a special order and there is unused capacity, we will not take into account the fixed costs.

<u>To calculate the effect on income, we need to use the following formula:</u>

Effect on income= number of units*unitary contribution margin

Effect on income= 4,400 (21 - 18 - 2)

Effect on income= $4,400 increase

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A monopolist has four distinct groups of customers. Group A has an elasticity of demand of​ 0.2, B has an elasticity of demand o
Bumek [7]

Answer:  Group A

Explanation:

Price Elasticity of demand refers to the sensitivity of quantity demanded given a change in price. In other words, how much will quantity demanded change if price changes. Higher elastcities mean that when prices change, their quantity demanded changes more. For instance, an elasticity of demand of 2 means that when prices rise by 2%, demand will decrease by 4%.

The group that will be paying the most therefore will have to be the group that is least sensitive to paying that high price. That would be Group A. As they are not very sensitive to price changes with an elasticity of 0.2, the Monopoly can increase their price to a higher point than others knowing that they won't demand less goods.

5 0
3 years ago
A voluntary tricare health maintenance organization type of option is known as
NemiM [27]
<span>A voluntary tricare health maintenance organization type of option is known as TRICARE Prime. Being a member of this tricare gives a possibility to choose a primary doctor, that coordinates all of your health care, from a network. Also, it offers routine exams, immunizations and preventive services with no copayment.</span>
8 0
3 years ago
At a price of $9.99, Danielle buys 3 digital books per month. When the price decreases to $7.99, Danielle buys 4 digital books p
Studentka2010 [4]

Answer:

The correct answer D

Explanation:

When the price of the product is $9,99, then the customer bought 3 books per month. But when the price decreases from $9.99 to $7.99, then the customer bought 4 books per month. Because when the price of the product decreases, the quantity demanded for the product increases for the while and when the prices increases, the quantity demanded decreases, it is not constant.

Therefore, Jason is in correct as the demand for the product has not increases, but only the quantity demanded has increased.

8 0
3 years ago
For each of the roles below, write a paragraph or two supporting or opposing a tariff that is being considered to tax imported f
____ [38]

Answer:

1. You are a farmer, growing mangoes in California. Due to a recent drought, your crop has been particularly bad this year. The Chilean mango crop, on the other hand, is particularly good this year.

As a farmer I would support high import tariffs in order to increase the price of imported mangoes. If the world price of mangoes is very high, then I will be able to charge a higher price for my own production.

Since this was a very bad year for domestic mangoes, a very high price would allow me to recover some of the losses and stay in business. Several families are directly and indirectly affected by whether my business continues or not. I have employees and suppliers that would be negatively affected if I have to close my farm.

By increasing import tariffs, the government will earn higher taxes for every mango imported. The government also has the duty to protect local businesses.

2. You are the proprietor of a restaurant that specializes in tropical cuisine. You use mangoes and other tropical fruits in many of your dishes. Since the competition in the restaurant industry is stiff, you’re always competing to stay in business.

I oppose import tariffs, and if possible they should be eliminated. Import tariffs increase the price of goods, both domestic and imported, increasing my production costs and reducing my income.

Even though import tariffs might help a small amount of local businesses, it hurts society as a whole. Customers have to pay higher prices for mangoes, or any type of product, that should be purchased at much lower prices. The economic loss resulting from import tariffs and negatively affecting consumers and other businesses offsets by far any economic benefit generated by them. If such actions are taken, the domestic mango industry will be unfairly treated just like the sugar industry and a few others that hurt the entire economy and benefit only a few.  

The government has the duty to do what is best for its citizens and businesses, and it cannot help a handful of businesses by hurting a very large group of other businesses and consumers. Government revenue will also decrease since steep tariffs will prevent any mangoes from being imported, reducing government revenue to zero.

4 0
3 years ago
A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year. Using a 10 percen
Ronch [10]

Answer:

$20.94

Explanation:

first we must determine the present value of the the 3 rent amounts:

PV = $20/1.1 + $21/1.1² + $22/1.1³ = 52.07

then you need to calculate the payment considering the following values:

  • principal = $52.07
  • n = 3
  • i = 10%

using a loan calculator payment = $20.9381 ≈ $20.94

7 0
3 years ago
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