Answer:
c. there will be a shortage of the good.
Explanation:
The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at a price of $0.40 per pound: c. there will be a shortage of the good.
The correct answer is - c. there will be a shortage of the good.
Reason -
At the equilibrium price, the demand = supply
If the price is increased by the equilibrium price then, there are more customers(i.e. quantity demanded is increase ) and there is shortage of goods (i.e quantity supplied will decrease)
So, the correct option is - c. there will be a shortage of the good.
Answer:
If an existing asset is sold at a gain, and the gain is taxable, then the after-tax proceeds from this transaction would be equal to:
Net proceeds from the sale less the taxes paid on the gain.
Explanation:
An illustration is given below. Company A received $70,000 from the sale of an Office Equipment with a tax basis of $40,000. The capital gains tax rate is 20%. How much would be the after-tax proceeds? The net proceeds minus the tax basis would result in the capital gains of $30,000. Then, the capital gains tax equals $6,000 ($30,000 * 20%). Therefore, the after-tax proceeds would be $70,000 minus $6,000, which is equal to $64,000.
Answer:
b. Allow the parties to rescind the contract
Explanation:
Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States at a certain amount mentioned in the contract. However, Global Shipping Ltd. makes a mistake in calculating the costs. As a result, a contract price is equal to the amount that is $1,000 less than the true cost. Most likely, a court would allow the parties to rescind the contract.
Option b. is correct.
Answer:
correct option is c. 43.75
Explanation:
given data
share own = 700
stock outstanding = 320000
market price = $25
interest and taxes = $160,000
debt = $500,000
interest = 7%
loan = 7.5 percent interest
to find out
How many shares of JKL stock must Theo sell to unlever
solution
first we get here no of share that repurchased is express as
no of share = 
..............1
no of share = 
no of share = 20,000 shares
sell = share own × ( no of share ÷ stock outstanding ) .................2
sell = 700 × 
sell = 43.75 shares
so correct option is c. 43.75
Answer:
a. If Mel decides to sell dinners, what are the total costs for both making and buying the cookies?
if Mel decides to sell dinners, the he will not have any spare capacity for producing cookies, so the production costs would be different:
direct materials $0.20
direct labor $0.15
total overhead (including variable and fixed) $0.45
total cost per cookie = $0.80
Purchase price form external supplier = $0.60 per cookie (same as before).
b. Should Mel continue to buy the cookies? Yes No
It would be better for Mel to simply buy the cookies from an external supplier at $0.60.
Mel should only produce the cookies if he decides not to sell dinners.
