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sleet_krkn [62]

2 years ago

10

When Paul listened to the presidential candidate debates, he heard one candidate proposing to increase taxes and the other candi

date responding that this would cause firms to decrease production. How would this be described by an economist? Group of answer choices

1 answer:

lord [1]2 years ago

6 0

Answer:

as taxes increase, there is a decrease in supply

Explanation:

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Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $63,000 per

pshichka [43]

Answer:

Break-even point= 11,500 units

Explanation:

Giving the following information:

Selling price= $20.00 per unit.

Fixed expenses= $63,000 per year.

Break-even point= 9,000 units to break even.

Desired profit= $17,500

First, we need to calculate the unitary variable cost:

Break-even point= fixed costs/ contribution margin

9,000= 63,000 / (20 - unitary variable cost)

9,000*20 - 9,000x= 63,000

180,000 - 63,000= 9,000x

117,000/9,000=x

13= unitary variable cost

Now, we can calculate the number of units:

Break-even point= (fixed costs + desired profit) / contribution margin

Break-even point= (63,000 + 17,500) / (20 - 13)

Break-even point= 11,500 units

3 0

3 years ago

"The Free-Float Company, a company in the 36% tax bracket, has riskless debt in its capital structure which makes up 40% of the

Strike441 [17]

Answer:

Equity Beta = 1.1413

Explanation:

The formula to find the asset beta is

Asset Beta = Equity Beta/(1+(1-tax rate)(Debt/Equity))

We will put the values given in the question in this formula

Asset Beta = 0.8

Tax rate = 0.36

Debt = 0.40

Equity = 0.60

0.8=Equity Beta/(1+(0.64)(0.40/0.60)

0.8=Equity Beta/1+0.4266

0.8=Equity Beta/1.4266

1.4266*0.8= Equity Beta

Equity Beta = 1.1413

6 0

3 years ago

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as

denpristay [2]

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

<u>Account Name Debit ($) Credit ($) </u>

Cash (768,000 * 85%) 652,800

Note Payable 652,800

<em><u>(To record the secured borrowing.) </u></em>

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

<u>Account Name Debit ($) Credit ($) </u>

Cash 504,320

Refund Liability 20,480

Accounts Receivable 524,800

<u><em>(To record collection on receivables for first month.) </em></u>

Interest Expense 4,480

Note Payable 499,840

Cash 504,320

<u><em>(To record payment to Miami for the first month.) </em></u>

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

<u>Account Name Debit ($) Credit ($) </u>

Cash 238,080

Allowance for Doubtful Debt 5,120

Accounts Receivable (w.1) 243,200

<u><em>(To record collection on receivables for second month Interest.) </em></u>

Expense 1,920

Note Payable 151,040

Cash (w.2) 152,960

<u><em>(To record final payment to Miami.) </em></u>

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

3 0

3 years ago

Congress would like to increase tax revenues by 10 percent. Assume that the average taxpayer in the United States earns $65,000

SSSSS [86.1K]

Answer: <em><u>16.5% is the average tax rate that will result in a 10 percent increase in tax revenues.</u></em>

Explanation:

This is an example of static forecasting since no time parameter is involved.

Now,

Let initial revenue be "R" ,

"n" be no. of taxpayer

∴ R= 65000×0.15×n

R +0.1R= 65000×rate×n

Using the above two equation, we'll get ;

<u><em>r = 16.5%</em></u>

7 0

3 years ago

Brightstone Tire and Rubber Company has capacity to produce 221,000 tires. Brightstone presently produces and sells 169,000 tire

Firdavs [7]

Answer and Explanation:

A. The preparation of the differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors is presented below:

Differential analysis

Reject (Alternative 1) or accept (Alternative 2)

Jan 21

Particulars Reject order Accept order Differential effect on income

(Alternative 1) (Alternative 2) (Alternative 2)

Revenues

(26,000 tires × $93.6) $2,433,600 $2,433,600

Less: cost

direct material

(26,000 tires × $54) -$1,404,000 -$1,404,000

Direct labor

(26,000 tires × $24) -$624,000 -$624,000

Variable factory overhead

(26,000 tires × $24 × 0.62) -$386,880 -$386,880

Variable selling and admin expenses

(26,000 tires × $25 × 0.44) - ($114 × 4%)

-$167,440 -$167,440

Shipping cost

(26,000 tires × $7.65) -$198,900 -$198,900

Certification cost -$165,424 -$165,424

Income or loss -$513,044 -$513,044

B. As we can see that there is a loss of -$513,044 so the special order should be rejected

C. The minimum price is

= Selling price - differential income per unit

= $93.6 - (-$513,044 ÷ 26,000 tires)

= $93.6 - (-$19.73)

= $113.33

5 0

3 years ago