Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
there will be fewer labor hours purchased by employers than at the equilibrium wage. none of the above
Explanation:
Equilibrium in economics means balance. Equilibrium wage rate refers to the market wage rate where the quantity of labor supplied matches the labor demanded. It is the wage rate that employers are willing to pay, and workers are ready to accept each hour of labor. The equilibrium wage represents the intersection of labor demand and supply curves.
If the wage is set above the equilibrium rate, it will force employers to pay more than they are willing. Employers will be paying more to workers than the value they are receiving. The hiring of many workers will be uneconomical. Employers will hire fewer workers to keep their costs down.
Answer:
Results are below.
Explanation:
Giving the following information:
Sales $382,500 (units 5,100 $75 per unit)
variable costs $245,000 (48.04 per unit)
fixed costs $98,000.
Option 1:
Increase selling price by 16%.
New selling price= 75*1.16= 87
Sales= 5,100*87= 443,700
variable costs= (245,000)
fixed costs= (98,000)
Net income= 100,700
2. Reduce variable costs to 59% of sales.
Contribution margin= (382,500*0.41)= 156,825
fixed costs= (98,000)
Net income= 58,825
T<u>he most profitable option is the first one.</u>
Answer:
$9.40
Explanation:
First we have to calculate the future value of the stock when it starts to pay the $1.40 using the perpetuity formula:
stock price in 7 years = $1.40 / 10.7% = $13.08
Now we have to find the present value of both next year's dividend and the perpetuity:
stock price = ($3.30 / 1.107) + ($13.08 / 1.107⁷) = $2.98 + $6.42 = $9.40
