An article in Forbes noted that the Intercounty Connector toll road that connects two counties in Maryland was not generating
as much toll revenue as predicted. At that time, the toll rate was $8 for a passenger car making a round trip from end to end on
the tollway during rush hour.
What additional information would you need to know in order to determine if the toll should be increased or decreased?
A. The price elasticity of supply
B.The income elasticity of drivers using the tollway
C. The number of vehicles using the tollway per day
D.The price elasticity of demand
Answers
Answer:
The price elasticity of demand
Explanation:
you need to know how high the demand is for the toll road.
The additional information that would be needed in order to determine if the toll should be increased or decreased is the price elasticity of demand.
The price elasticity of demand is required in this case as it shows the change that affects the consumption of a product due to the fact that there was either an increase or a reduction in the price.In this case, since the toll road wasn't making as much toll revenue as predicted, then this could be because there was an increase in the price of the toll road.In such case, the additional information that's needed will be the price elasticity of demand.In conclusion, the correct option is D.
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Related Questions
what are other roles of business in the economy?
Answers
Answer:
i hope it helps u :)
Explanation:
In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs.
Answer:
Explanation:
In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs
the insider quiz Bergman received a box of documents on his doorstep. What is the name of the company where the documents came from
Answers
The name of the company where the documents received by Bergman came from is B. Brown & Williamson.
What was Brown & Williamson?Brown & Williamson Tobacco Corporation was the third-largest tobacco company in the United States.
Brown & Williamson Tobacco Corporation became infamous as the focus of investigations by Lowell Bergman in 2000 for chemically enhancing the addictiveness of cigarettes.
Answer Options:A. American Tobacco Company
B. Brown & Williamson Tobacco Company
C. Liggett Group
D. Lorillard Tobacco Company
E. Phillip Morris USA O RJ Reynolds
Thus, the name of the company where the documents received by Bergman came from is B. Brown & Williamson.
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The concept of a price index is that: Question 28 options: it is an index of how much housing prices have changed, because housing is the most important item in the consumption bundle. it is a measure of how the prices included in the typical basket of goods have changed over time, holding the items in the consumption bundle constant. it is a measure of how the items included in the typical basket of goods have changed over time; it also includes price changes over time. it is an index of how much gasoline prices have increased, because all prices follow the price of gasoline. it is a measure of how the items included in the typical basket of goods have changed over time, while holding price changes constant.
Answers
Answer:
Option B (It is a.............bundle constant) would be the correct choice.
Explanation:
The index number representing the amount including its commodities prices community determines the level including its values of almost the same goods over the base time randomly selected and used to denote shifts throughout the price point through one time toward the next. A calculation of where and how prices have been rising over time in a standard basket of things, keeping the products steady throughout the consumption package. The price index maybe for something like gasoline, homes, etc.Some other approaches offered aren't linked to the possibility specified. So, the obvious response above is the right one.
Milton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800. Notes Receivable includes the following.
date Maker Face Value Term Maturity Date Interest Rate
21-Apr Coote Inc 6,000 90 Days 20-Jul 8%
25-May Brady Co 7,800 60 Days 24-Jul 10%
30-Jun BMG Co 10,000 6 Months 31-Dec 6%
During July, the following transactions were completed.
July 5 Made sales of $4,500 on Milton Company credit cards.
14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.
20 Received payment in full from Coote Inc. on the amount due.
24 Received payment in full from Brady Co. on the amount due.
Required:
a. Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable.
b. Show the balance sheet presentation of the receivable accounts at July 31.
Answers
a) Journalizing the July transactions and the July 31 adjusting entry for accrued interest receivable for Milton Company is as follows:
July 5 Debit Credit Card $4,500
Credit Sales Revenue $4,500
Milton Company credit cards.
July 14 Debit Visa Credit Card $582
Credit Visa Credit Card Expense $18
Credit Sales Revenue $600
Visa credit cards with a service charge of 3%.
July 20 Debit Cash $6,120
Credit Notes Receivable (Coote Inc.) $6,000
Credit Interest Revenue $120
July 24 Debit Cash $7,930
Credit Notes Receivable (Brady Co.) $7,800
Credit Interest Revenue $130
Adjusting Journal Entry:July 31 Debit Interest Receivable $50
Credit Interest Revenue $50
b. The balance sheet presentation of the receivable accounts as of July 31 is as follows:
Milton Company
Balance Sheet as of July 31:
Receivable Accounts:Credit Cards $5,082
Notes Receivable $10,000
Interest Receivable $50
Data and Calculations:Notes Receivable account balance = $23,800
Detailed as follows:
Date Maker Face Value Term Maturity Date Interest Rate
21-Apr Coote Inc $6,000 90 Days 20-Jul 8%
25-May Brady Co 7,800 60 Days 24-Jul 10%
30-Jun BMG Co 10,000 6 Months 31-Dec 6%
Total $23,800
Transactions Analysis:July 5 Credit Card $4,500 Sales Revenue $4,500
Milton Company credit cards.
July 14 Visa Credit Card $582 Visa Credit Card Expense $18 Sales Revenue $600
Visa credit cards with a service charge of 3%.
July 20 Cash $6,120 Notes Receivable (Coote Inc.) $6,000 Interest Revenue $120
July 24 Cash $7,930 Notes Receivable (Brady Co.) $7,800 Interest Revenue $130
July 31 Interest Receivable $50 Interest Revenue $50
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Find the values of y²=144
Answers
Answer:
y = 12
Explanation:
y^2 = 12^2
y = 12
which is your answer
What do you think will happen to the stock market? Will it go down and possibly lead to the worst market crash in history , or will it bounce back to a high? & why ?
Answer in a paragraph please (: you’ll receive a brainy
Answers
A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutually exclusive revenue alternatives should be selected for improving the marketability of personal care products used for conditioning hair, cleansing skin, removing wrinkles, etc. The alternatives (X, Y, and Z) were ranked in order of increasing initial investment and then compared by incremental rate of return analysis. The rate of return on each increment of investment was less than the company's MARR of 17% per year. The alternative to select is: Group of answer choices
Answers
Answer: a. DN
Explanation:
The Minimum Acceptable Rate of Return (MARR) which is also known as the Hurdle Rate is the rate of return that will be earned by an investment to ensure that it will cover its cost.
This means that below the MARR, the project will bring in less than the costs it incurred. This is therefore not ideal.
The rate of return on each increment was less than the MARR of 17% which means that they are not profitable.
The company should not invest or rather Do Nothing.
When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:
Answers
When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:
the bigger the plant, the more efficient production became. What is Economies of Scale?This refers to the cost advantage which a particular company makes as they produce more goods using fewer input costs as a result of the size of the market.
With this in mind, with the evolution of businesses and the production of larger amounts of product, then it can be said that their use of mass production methods shows that if the production plant is bigger, then the production is more efficient.
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Answer: The bigger the plant, the more efficient production became
Explanation:
If preferred stock sold for $67 a share and $4 dividends were paid annually, what would be the required return
Answers
16.75 don't ask how I got it done the question before
Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effect of each of the following transactions on the company's 2019 gross income assuming that the company uses any available options to defer its taxes.
Required:
a. In December 2018, the company received a $1,200 advance payment from a customer for an appliance that Drake special ordered from the manufacturer. The appliance did not arrive from the manufacturer until January 2019, and Drake immediately delivered it to the customer. The sale was reported in 2019 for financial accounting purposes.
b. In October 2019. the company sold a 6-month service contract for $240. The company also sold a 36-month service contract for $1,260 in July 2019.
Answers
Answer:
(a) $1,200
(b) $330
Explanation:
(a)
The advance payment was issued in 2018, however the items throughout 2018 were not shipped. The products were distributed throughout 2019 as well as the transaction for accounting information requirements was announced throughout 2019.Therefore, in 2019, $1200 would include gross revenue
(b)
Service contract for 6 months will be:
Drake would include gross income throughout 2019 of [tex]120(40\times \frac{3}{6} )[/tex] ($)and gross income throughout 2020 of $120. In October year 2019, because a corporation offered a 6-month contract, total sales in 2019 represented just a 3-month service agreement.
Service contract for 36 months will be:
Throughout 2019 gross sales, Drake would include [tex]120(= (= 1260\times \frac{6}{36} )[/tex].The residual balance would not have been all conducted until the close including its tax year of collection since the contract became sold through 36 month. The residual amount of [tex]1050 (= 1,260-210)[/tex] is thus used throughout gross sales for 2020.Consequently,
⇒ Cumulative gross income used throughout 2019 = total earnings of 6 months service agreement + gross income of 36 months service agreement
⇒ [tex]120 + 210[/tex]
⇒ [tex]330[/tex] ($)
The treasurer for Pittsburgh Iron Works wishes to use financial futures to hedge her interest rate exposure. She will sell five Treasury futures contracts at $185,000 per contract. It is July and the contracts must be closed out in December of this year. Long-term interest rates are currently 16.30 percent. If they increase to 18.50 percent, assume the value of the contracts will go down by 15 percent. Also, if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $165,000. This expense, of course, will be separate from the futures contracts.
Required:
a. What will be the profit or loss on the futures contract if interest rates increase to 10.50 percent by December when the contract is closed out?
b. After considering the hedging, what is the net cost to the firm of the increased interest expense of $139,000?
c. What percent of this $139,000 cost did the treasurer effectively hedge away?
Answers
Answer:
Explanation:
185000x 1-0.15
= 185000 x 0.85
= 157250
gain = 185000-157250
= 27750
number of contracts = 5
5 x 27750
= 138750
other commitments = 16500
165000 - 138750
= 26250
this is the net cost
percentage hedged away:
138750/165000
= 0.841
= 84.1%
c. loss. there would be a loss on future contract sincelower interest would bring about greater bond prics and the purchase price would be more than the initial sales price.
When a sale is made on account, what impact does a sales discount have on the amount of cash eventually received? It either increases or decreases the amount of cash received in unpredictable ways. It neither increases nor decreases the amount of cash received. It decreases the amount of cash received. It increases the amount of cash received.
Answers
When a sale is made on account, D. It decreases the amount of cash received.
What is sale?It should be noted that sale simply means the quantity of goods and services sold at a particular period of time.
In this case, when a sale is made on account, the impact that it will have on the amount of cash eventually received is that it decreases the amount of cash received.
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If you deposit Rs.100 in the bank today and it earns interest at a rate of 8% compounded annually, how much will be in the account 50 years from today?
Answers
Answer:
400
Explanation:
(8%×50)×100=
(8/100×50)×100=
(8/2)×100=
4×100=
400
Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to the company’s two departments for the month of January: Mixing Bottling Cases of cola in work in process, January 1 10,000 5,000 Cases of cola completed/transferred out during January 65,000 ? Cases of cola in work in process, January 31 4,000 7,000 How many cases of cola were completed and transferred to Finished Goods Inventory during January?
Answers
Answer:
$63,000
Explanation:
The computation of cases of cola were completed and transferred to Finished Goods Inventory during January is shown below:-
Completed and transferred to finished goods inventory is
= Case of cola as on Jan 1 work in process + completed & transferred out - ending work in process as on Jan 31
= $5,000 + $65,000 - $7,000
= $63,000
Hence, the number of cases of cola is $63,000
Andrew Industries is contemplating issuing a -year bond with a coupon rate of (annual coupon payments) and a face value of . Andrew believes it can get a rating of A from Standard & Poor's. However, due to recent financial difficulties at the company, Standard & Poor's is warning that it may downgrade Andrew Industries' bonds to BBB. Yields on A-rated, long-term bonds are currently , and yields on BBB-rated bonds are . a. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue? b. What will be the price of the bond if it is downgraded?
Answers
Answer:
The numbers are missing, so I looked for a similar question to fill in the blanks:
Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.13% (annual coupon payments) and a face value of $1,000. Andrew believes it can get a rating of A from Standard& Poor's. However, due to recent financial difficulties at the company, Standard & Poor's is warning that it may downgrade Andrew Industries' bonds to BBB. Yields on A-rated, long-term bonds are currently 6.43%, and yields on BBB-rated bonds are 6.84%.
a. What is the price of the bond if Andrew Industries maintains the A rating for the bond issue?
if the YTM is 6.43%, then the market price will be:
0.0643 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]
0.0643 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]
0.0643 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M
32.15 + 0.03215M = 104.63 - 0.03333M
0.06548M = 72.48
M = 72.48 / 0.06548 = $1,106.90
b. What will be the price of the bond if it is downgraded?
if the YTM is 6.84%, then the market price will be:
0.0684 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]
0.0684 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]
0.0684 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M
34.20 + 0.0342M = 104.63 - 0.03333M
0.06753M = 70.43
M = 70.43 / 0.06753 = $1,042.94
QUESTION 9 / 10
Which of the following statements is TRUE?
A. People with low credit scores are usually low-risk
borrowers.
B. The longer you use credit responsibly, the higher your
credit score will be.
C. Applying for several credit cards in one year can help
increase your credit score.
D. Paying off your entire credit card balance can lower
your credit score.
Answers
Answer:
B
Explanation:
Hello!
Let's analyze the statements and gather the accuracy of each response.
Note, that a higher credit score is good, and a lower one is bad.
A) People with low credit scores are usually very reckless with their money and their credit cards; therefore, they are high-risk borrowers to people who give them loans because they might never pay them back (which resulted in the low credit score to begin with)
B) The longer you use your credit card and pay on time, the more your credit score will rise. This is a very factual statement.
C) Applying for several credit cards can actually lower your credit score. If you have so many credit cards, you might end up forgetting to pay one, which lowers it, or with improper account management.
D) Paying off your credit card is good...so why would it lower a credit score?
If firms can set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance, they generally can close the ________ gap. Multiple Choice knowledge standards delivery communication ethical
Answers
The gap which firms can close up when they set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance is the:
Standards gapWhat are Standards Gap?This refers to the difference between people who have knowledge about something and effective application and people who do not have this.
With this in mind, we can see that standards gap can actually be bridged if firms engage in service criteria and also train the employees that can meet and maintain such criteria.
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The Arc Electronic Company had an income of 80 million dollars last year. Suppose the mean income offirms in the same industry as Arc for a year is 100 million
dollars with a standard deviation of 15 million dollars. If incomes for this industry are distributed normally, what is the probability that a randomly selected firm will
carn more than Arc did last year? Round your answer to four decimal places
Answers
Answer:
23.89% probability that a randomly selected firm will earn more than Arc did last year
Step-by-step explanation:
Problems of normally distributed samples are solved using the z-score formula.
In a set with mean and standard deviation, the score of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the value, we get the probability that the value of the measure is greater than X.
In this problem, we have that:
If incomes for this industry are distributed normally, what is the probability that a randomly selected firm will earn more than Arc did last year?
This is 1 subtracted by the value of Z when X = 85. So
has a value of 0.7611
1 - 0.7611 = 0.2389
23.89% probability that a randomly selected firm will earn more than Arc did last year
The entry that includes a debit to Cash and credit to Accounts Receivable at a discounted price is recording the ______. Multiple choice question.
Answers
We are recording a sales credit when the entry a debit to Cash and credit to Accounts Receivable at a discounted price.
What does sales discounts entails?Normally, the debit of sales discounts account by the amount of the discount are recorded.
For instance, when we debit cash by $99 and debit sales discounts by $1, we will credit the accounts receivable account in the same journal entry.
In conclusion, we are recording a sales credit when the entry a debit to Cash and credit to Accounts Receivable at a discounted price.
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Which of the following methods may be used to report comprehensive income? (Select all that apply.) Check All That Apply In a single, continuous statement of comprehensive income In a single, continuous statement of comprehensive income In the statement of shareholdersâ equity In the statement of shareholdersâ equity In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but nonconsecutive statements, an income statement and a statement of comprehensive income.
Answers
Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.
Answers
Answer:
General Ledger
1.
Cash $40,000 (debit)
Capital $40,000 (credit)
Owners Invest In the business
2.
Supplies $500 (debit)
Accounts Payable $500 (credit)
Supplies purchased on credit
3
Equipment $25,000 (debit)
Cash $3,500 (credit)
Note Payable $21,500 (credit)
Equipment purchased partly in cash and in credit
4.
Accounts Receivable $4,000 (debit)
Commission Earned $4,000 (credit)
Commission earned not yet received
5.
Rent Expense $700 (debit)
Cash $700 (credit)
Rent paid in cash
6.
Accounts Payable $250 (debit)
Cash $250 (credit)
Settlement of Accounts Payable
7.
Advertising Expense $800 (debit)
Accounts payable $800 (credit)
Advertising Bill due
8.
Salaries Expenses $2,500 (debit)
Cash $2,500 (credit)
Salaries paid
9.
Dividends $1,200 (debit)
Cash $1,200 (credit)
Dividends paid to owners of the company
10.
Cash $2,000 (debit)
Accounts Receivable $2,000 (credit)
Accounts Receivables settle their debts
Explanation:
See the journal entries prepared including narrations (for your learning and understanding)
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,184,000 $ 3,510,000 $ 2,316,600 Estimated costs to complete as of year-end 5,616,000 2,106,000 0 Billings during the year 1,800,000 3,894,000 4,306,000 Cash collections during the year 1,600,000 3,400,000 5,000,000 Westgate Construction uses the completed contract method of accounting for long-term construction contracts. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
Answers
Answer:
revenue recognized
2018 = $2,800,000
2019 = $4,500,000
2020 = $2,700,000
gross profit
2018 = $616,000
2019 = $990,000
2020 = $383,400
Explanation:
Percentage of 2018 2019 2020
completion method
Cost incurred in $0 $2,184,000 $5,694,000
previous year
+ Cost incurred $2,184,000 $3,510,000 $2,316,600
during the year
Total cost incurred $2,184,000 $5,694,000 $8,010,600
+ Estimated cost to $5,616,000 $2,106,000 $0
be incurred
Total estimated cost $7,800,000 $7,800,000 $8,010,600
to be incurred
Percentage of 28% 73% 100%
completion
Total revenue $10,000,000 $10,000,000 $10,000,000
Total revenue $2,800,000 $7,300,000 $10,000,000
recognized (% of completion x total revenue)
- Revenue recognized ($0) ($2,800,000) ($7,200,000)
in previous year
= revenue recognized $2,800,000 $4,500,000 $2,700,000
in current year
gain/loss 2018 2019 2020
Revenue $2,800,000 $4,500,000 $2,700,000
- Cost incurred ($2,184,000) ($3,510,000) ($2,316,600)
Gross profit $616,000 $990,000 $383,400
What jobs will increase in demand in the near future?
O Technology, art and service
O Taxi drivers, postal carriers and fast food cooks
O Data entry, door to door sales and electronic equipment assemblers
O All of the above
Answers
Answer:
In my opinion, the jobs that will increase in demand in the near future is:
Option 3 - Data entry, door to door sales and electronic equipment assemblers.
Explanation:
Because the world is simply advancing to these new technologies that are being created, might i say the world is getting advanced each year that passes. Which makes Data Scientists, Artificial Intelligence Professionals, Cyber Security Professionals, Technical Engineering and other jobs get higher demands!
So i could suggest these jobs if you're looking for jobs that will be needed somewhat in the future.
I hope this will help you! ^^
Consider the following national data: tax revenues as a percentage of GDP: 30 percent; government spending as a percentage of GDP: 31 percent; unemployment rate: 4 percent; inflation rate: 5 percent. What is the misery index for this nation
Answers
The misery index for the country given the national data is 9%.
What is the misery index?
The misery index is the sum of the current unemployment rate and the current inflation rate. In the United States, the current misery index is 11.67%.
Misery index = unemployment rate + inflation rate
4% + 5% = 9%
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Assume that Carla Corp. earned net income of $3,601,000 during 2021. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021.
Required:
Compute earnings per share for 2021.
Answers
Answer:
earnings per share = (net income - preferred dividends) / average outstanding shares
net income = $3,601,000preferred dividends = $0 (since they are noncumulative, any preferred dividend that is not paid during the year is lost and will not be paid in the future)outstanding shares = ?we cannot calculate EPS since the number of shares is not given, the formula is incomplete:
EPS = ($3,601,000 - $0) / ? = $3,601,000 / ?
In order to determine EPS, you would need to introduce the number of shares.
E.g. the company has 1,000,000 shares, then EPS = $3,601,000/1,000,000 = $3.60
E.g. the company has 500,000 shares, then EPS = $3,601,000/500,000 = $7.20
Use the midpoint method when applicable to calculate the price elasticity of demand. A plastic container company, raises the price of its signature Lunchbox container from $3.00 to $4.00 . As a result, the quantity sold drops from 20,000 to 15,000. Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5. Capital Metro decides to increase bus fare rates from $2.00 to $2.21 . Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.
Answers
Answer:
A plastic container company, raises the price of its signature Lunchbox container from $3.00 to $4.00 . As a result, the quantity sold drops from 20,000 to 15,000.
PED = (15,000 - 20,000)/[(20,000 + 15,000)/2] / (4 - 3)/[(4 + 3)/2]
PED = -0.2857 / 0.2857 = -1 or |1| in absolute terms
PED is unitary elastic, since a 1% increase in price will result in a 1% decrease in quantity demanded.
Capital Metro decides to increase bus fare rates from $2.00 to $2.21 . Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.
PED midpoint method = (61,000 - 70,000)/[(61,000 + 70,000)/2] / (2.21 - 2)/[(2.21 + 2)/2]
PED midpoint method = -0.1374 / 0.0998 = -1.38 or |1.38| in absolute terms
PED is elastic, since a 1% increase in price will result in a larger decrease in quantity demanded.
Explanation:
PED midpoint method = (Q2 - Q1)/[(Q2 + Q1)/2] / (P2 - P1)/[(P2 + P1)/2]
Which of the following is an example of a market failure? A(n)
Choose all that apply.
outcome in which total surplus is maximized.
outcome in which a cost spills onto a third party.
market outcome in which consumer surplus is greater than producer surplus.
quantity in which marginal social benefit exceeds marginal social cost.
overproduction of goods and services.
Answers
The examples of market failure include:
market outcome in which consumer surplus is greater than producer surplus.overproduction of goods and services.What is market failure?Market failure simply means an inefficient distribution of goods and services in the market.
In this case, market failure can occur when there's a market outcome in which consumer surplus is greater than producer surplus and when there's an overproduction of goods and services.
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Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $512,000 or a new model 220 machine costing $408,000 to replace a machine that was purchased 12 years ago for $455,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $408,000 in the new machine, the money could be invested in a project that would return a total of $57,000.
In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was:_________
a. $455,000
b. $408,000
c. $512,000
d. $485,000
Answers
Answer:
Option d ($485,000) is the correct alternative.
Explanation:
When making the investment decision throughout the 220 model computer, the expense of the opportunity or chance seems to be:
= $485,000
As we know,
⇒ Opportunity cost = Return from alternative investment
i.e., $485,000
All other available options weren’t applied to the example mentioned. So, the solution above is the right one.
Zerо bаsed budgeting wаs first аррlied by:
а. Аbrаhаm Linсоn
b. Jimmy Саrter
с. Рeter А рhyrr
d. Аlex Оuсhy
Answers
Answer:
c.Peter A phyrr
Explanation:
Zero-based budgeting originated in the 1960s by former Texas Instruments account manager Peter Pyhrr.
A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: SUPPLIER A SUPPLIER B Quantity Unit Price Quantity Unit Price 1–199 $14.00 1–149 $14.10 200–499 13.80 150–349 13.90 500 + 13.60 350 + 13.70 Click here for the Excel Data File Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit. a-1. Which supplier should be used? Supplier A Supplier B a-2. What order quantity is optimal if the intent is to minimize total annual costs? 150 500 200 350 300 1
Answers
Answer:
I will take Supplier A and make orders of 500 units as give lower inventory cost
From the proposed units the best option to inimize cost is 500 units.
Explanation:
Supplier A Supplier B
1 –199 $14.00 1–149 $14.10
200–499 13.80 150–349 13.90
500+ 13.60 350 + 13.70
Holding Cost 25% of the unit price.
D = annual demand =
800 monthly x 12 month = 9,600 per year
S= setup cost = ordering cost = 40
H= Holding Cost = $13.60 x 25% = 3.40
Optimal Order Quantity
taking $13.60 (order size must be over 500)
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
[tex]Q_{opt} = \sqrt{\frac{2(9,600)(40)}{3.40}}[/tex]
OOQ: 475.2708206
As it is below the 500 to get the $13.60 price is not a cost minimizing option but, it can be better than the alternative
Ordering 9600 / 500 x $40 = $768
Holding: 500/2 x $13.60 x 25% = $850
Total $ 1,618
Using Supplier B of $13.70 (reqirement order size +350)
H= Holding Cost = 13.70 x 25% = 3.43
[tex]Q_{opt} = \sqrt{\frac{2(9,600)(40)}{3.43}}[/tex]
OOQ = 473.5330787
This order size will minimize the inventory cost.
Ordering 9600 / 474 x $40 = $810
Holding: 474/2 x $13.70 x 25% = $812
Total $ 1,622
Given cases:
Ordering 9600 / 150 x $40 = $2,560
Holding: 150/2 x $14.00 x 25% = $262.5
Total $ 2,822.5
Ordering 9600 / 500 x $40 = $768
Holding: 500/2 x $13.60 x 25% = $850
Total $ 1,618
Ordering 9600 / 200 x $40 = $1,920
Holding: 200/2 x $13.80 x 25% = $345
Total $ 2,265
Ordering 9600 / 350 x $40 = $1,097
Holding: 350/2 x $13.70 x 25% = $599
Total $ 1,696
Ordering 9600 / 300 x $40 = $1280
Holding 300/2 x $13.80 x 25% = $517.5
Total $1797.5
As per the equation , Supplier A and make orders of 500 units as give lower inventory cost and from the Proposed units the best calculation to minimize the cost is 500 Units.
Like :-
Supplier A Supplier B
1 –199 $14.00 1–149 $14.10
200–499 13.80 150–349 13.90
500+ 13.60 350 + 13.70
So the Holding Cost 25% of the unit price.
D = Annual demand = 800 monthly x 12 month = 9,600 per year
S= setup cost = ordering cost = 40
H= Holding Cost = $13.60 x 25% = 3.40
Optimal Order Quantity
taking $13.60 (order size must be over 500)
As it is below the 500 to get the $13.60 price is not a cost minimizing option but, it can be better than the alternative
Ordering 9600 / 500 x $40 = $768
Holding: 500/2 x $13.60 x 25% = $850
Total $ 1,618
Using Supplier B of $13.70 (requirement order size +350)
H= Holding Cost = 13.70 x 25% = 3.43
This order size will minimize the inventory cost.
Ordering 9600 / 474 x $40 = $810
Holding: 474/2 x $13.70 x 25% = $812
Total $ 1,622
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