HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

explain how the price consumers pay for a good is influenced by the price of the resources that go into making it

Reika [66]

Answer:

Here's an example

I sell bead bracelets for $5.00. The chord I use to make them is $2.50 for 5 feet. Each bracelet needs 1/4 of a foot of chord. That is $0.13 worth of chord per bracelet. The beads I use are 30 beads for $1.00. I use 5 beads in each bracelet. That is $0.17 worth of beads per bracelet. The total price of the materials per bracelet is 30 cents. Let's say It takes me 10 minutes to make a single bracelet. If I sell the bracelet at 30 cents, I would no have made a profit and would instead lose 10 minutes of my time. If I sell it for anything less, I would be losing money and time. If I want to make a profit, I need to add the money I want to make plus the cost of resources. Therefore, if I want to make a profit of $4.70, I must sell the bracelets for $5.00.

4 0

3 years ago

Josh's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs $3. Josh knows

egoroff_w [7]

Answer:

The answer is: Josh's utility maximizing point is when he buys 2 pizzas and 4 burgers.

Explanation:

If Josh gets equal marginal utility per dollar spent when buying one pizza and 2 burgers, that means that every pizza and every burger give Josh 10.67 utility unit per dollar spent. So Josh can obtain maximum 16 units of utility with his budget and his purchasing options (= $24 x 0.67 units of utility per dollar). The way he can maximize his utility is by buying two packs of one pizza and two burgers per pack, since every pack will give him 8 units of utility.

8 0

3 years ago

Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta

katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase = $16,529

PV cost of Leasing = $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price $32,780

less Federal tax credit ($7,500)

Charging station 2,200

less 50% tax credit (1,100)

Cash paid $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78

.

6 0

3 years ago

2. Sunshine Bakery bakes 660 loaves of bread each day and estimates that 10% of the bread will go stale before it is

Alisiya [41]

Answer:

$0.79

Explanation:

The Bakery bakes 660 loaves of bread

The cost of baking one bread= $0.46

The total cost of baking all loaves of bread

= $0.46 x 660

=$303.60

The desired mark up is 55% of cost

=55% of $303.60

=55/100 x $303.60

=0.55 x $303.60

= $166.98

Desired revenues = $166.98 +$303.60

=$470.58

The number of sellable breads= 660 - (10% of 660)

=660-66

=594

Desired income is $470.58; sellable output is 594.

price per bread should be

=$470.58/594

=$0.79222

Price per bread = $0.79

3 0

2 years ago

Assume the following data for Cable Corporation and Multi-Media Inc.

Tatiana [17]

Answer:

a-1 Cable Corporation 13.05

Multi-media Inc. 33.1%

a-2 Multi-Media Inc.

2. Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

Net income/Total assets 7.76% 14.51%

Sales/Total assets .79 times 2.80 times

Debt/Total assets 40.55% 56.17%

Explanation:

a-1. Computation to determine the return on stockholders’ equity for both firms.

CABLE CORPORATION

Using this formula

Return on Stockholders’ Equity= Net Income / Stockholder’s equity

Let plug in the formula

Return on Stockholders’ Equity=$31,200 / 239,000

Return on Stockholders’ Equity= 0.1305*100

Return on Stockholders’ Equity=13.05%

MULTI-MEDIA INC.

Return on Stockholders’ Equity=$140,000 / 423,000

Return on Stockholders’ Equity= 33.1%

a-2. Based on the above calculation the firm that has the higher return is MULTI-MEDIA INC.

b. Computation for the following additional ratios for both firms.

Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

($31,200/317,000=9.84%)

($140,000/2,700,000=5.19%)

Net income/Total assets 7.76% 14.51%

($31,200/402,000=7.76%)

($140,000/965,000=14.51%)

Sales/Total assets .79 times 2.80 times

(317,000/402,000=.79 times

(2,700,000/965,000=2.80 times)

Debt/Total assets 40.55% 56.17%

(163,000/402,000=40.55%)

( 542,000/965,000=56.17%)

4 0

3 years ago