Answer:
A. Deadweight loss = 125 units.
B. Deadweight loss = 25 units.
Explanation:
In a free market and completely efficient economy, the consumer surplus equals the producer surplus. Both benefits of free trade. When consumers o producers have a minor surplus, necessarily implies a loss on eficiency, usually caused by government regulations like taxes or price ceilings.
The amount of welfare lost is measure by the difference between consumer and producer surplus.
In the first case:
|Consumer surplus - producer surplus| = 25 units
|250- 125| = 125 units
And in the second case:
|180- 155| = 25 units
Answer:
Appreciation in Investment Value = Percentage rise in value of investment
Explanation:
Capital Gain yield equals the appreciation in an investment's price. It is measured as percentage change over the original investment acquisition value.
Capital Gain Yield = Percentage (%) rise in value of an investment
= ( Rise in Value of Investment / Original Value of investment ) x 100
Eg : If a security purchased for 100 is now for 125 ;
Capital Gain Yield = (25 / 100) x 100
= 25%
Answer:
4.Teach Fred about how decisions are made and communicated, as well as how conflict is handled.
Explanation:
Cultural differences are an important topic when it comes to adjusting to a new workplace. However, no matter how much the new employee knows about a specific culture, it is up to the manager or team leader to help him adjust.
The most effective way to help him is by teaching him <em>how decisions are made and conflict is handled</em>, in a straightforward manner. Since Fred is working in a team and not individually, it is essential for him to learn the basics of conflict management, as conflict handling varies immensely from country to country.
The same is applicable for decision making. He could not know the decision making practice in his new environment upfront. Some environments may encourage a more liberal way of making decisions, while some propose a strict protocol when it comes to making even the most trivial decisions.
Of course, checking him periodically and making sure he knows you're there for him are practices that can do only good. However, they are not critical for the issue.
Answer:
Overhead absorption rate
= Overhead absorbed/Actual labour cost x 100
= $4,400/$800 x 100
= 550% of direct labour cost
Explanation:
Since the overhead absorbed is $4,400, there is need to divide the overhead absorbed by actual direct labour cost multiplied by 100. This gives the overhead application rate.
Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
