Answer:
$153,333
Explanation:
Calculation to determine What amount should Olympic recognize as compensation expense for 2016
Using this formula
Compensation expense =Total compensation/Vesting period
Let plug in the formula
Compensation expense=($5 x 92,000)/3 years
Compensation expense=$460,000/3 years
Compensation expense=$153,333
Therefore What amount should Olympic recognize as compensation expense for 2016 is $153,333
The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output is $
Answer:
$10
Explanation:
The computation of the price of the output is given below;
As per the given data
At the time when the average product is maximum, so the average product is equivalent to the marginal product
Therefore, AP = MP= 30
MRP = 300
Now
MRP = MP × MR
300= 30 × MR
MR= 300 ÷ 30
= 10
So,
P= MR= 10
Urgent help needed. Thanks in advance.
Answer:
take a clear photo pls
Explanation:
a. A new operating system for an existing machine is expected to cost $616,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $40,000.
b. b. A machine costs $440,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $90,000 per year after straight-line depreciation. Assume the company requires a 12% rate of return on its investments.
Required:
Compute the net present value of each potential investment.
Answer:
a. Net present value = $539,013.67
b. Net present value = $273,361.47
Explanation:
a. A new operating system for an existing machine is expected to cost $616,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $40,000.
Annual depreciation = (Expected machine cost – Predicted salvage value) / Number of useful life = ($616,000 - $40,000) / 6 = $96,000
Annual cash inflows = Annual incremental after-tax income + annual depreciation = $180,000 + $96,000 = $276,000
Present value of the annual cash inflow = Annual cash inflows * ((1 - [1 / (1 + required rate of return)]^Number of years) / required rate of return) = $276,000 * ((1 - [1 / (1 + 0.12)]^6) / 0.12) = $276,000 * 4.11140732352233 = $1,134,748.42
Present value of predicted salvage value = Predicted salvage value / (1 + required rate of return)^Number of years = $40,000 / (1 + 0.12)^6 = $20,265.24
Net present value = Present value of the annual cash inflow + Present value of predicted salvage value - Expected machine cost) = $1,134,748.42 + $20,265.24 - $616,000 = $539,013.67
b. A machine costs $440,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $90,000 per year after straight-line depreciation.
Annual depreciation = (Machine cost – Salvage value) / Number of useful life = ($440,000 - $32,000) / 8 = $51,000
Annual cash inflows = Annual incremental after-tax income + annual depreciation = $90,000 + $51,000 = $141,000
Present value of the annual cash inflow = Annual cash inflows * ((1 - [1 / (1 + required rate of return)]^Number of years) / required rate of return) = $141,000 * ((1 - [1 / (1 + 0.12)]^8) / 0.12) = $141,000 * 4.96763976683859 = $700,437.21
Present value of salvage value = Salvage value / (1 + required rate of return)^Number of years = $32,000 / (1 + 0.12)^8 = $12,924.26
Net present value = Present value of the annual cash inflow + Present value of salvage value - Machine cost) = $700,437.21 + $12,924.26 - $440,000 = $273,361.47
The following data for the current year ended June 30 are from the accounting records of Zanadu Co.:
Administrative expenses $28,750
Cost of goods sold 181,440
Interest expense 3,600
Rent revenue 1,500
Sales 534,440
Selling expenses 65,000
Required:
Prepare a multiple-step income statement for the year ended June 30. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Negative amounts should be entered with a minus sign. Be sure to complete the statement heading.
Income Statement
Prepare a multiple-step income statement for the year ended June 30. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Negative amounts should be entered with a minus sign. Be sure to complete the statement heading.
Zanadu Co.
Income Statement
1
2
3
4
5
6
7
8
9
10
11
12
Answer:
Zanadu Co.
Multiple-step Income Statement for the year ended June 30
Sales Revenue $534,440
Cost of goods sold 181,440
Gross profit $353,000
Rent revenue 1,500
Administrative expenses 28,750
Selling expenses 65,000
Total operating expenses (93,750)
Operating income $260,750
Interest expense (3,600)
Income before taxes $257,150
Income taxes (30%) (77,145)
Net income $180,005
Explanation:
a) Data and Calculations:
Administrative expenses $28,750
Cost of goods sold 181,440
Interest expense 3,600
Rent revenue 1,500
Sales 534,440
Selling expenses 65,000
b) A 30% income tax has been assumed for this question.
A sum of $5,000 is invested for five years with varying annual interest rates of 9%, 8%, 12%, 6%, and 15%, respectively (for example, in the first year 9% interest is accrued and 8% in the second year and so on). The future amount after 5 years is equal to ____________.
Answer:
The future amount after 5 years is equal to $8,036.04.
Explanation:
This can be calculated using the future value (FV) formula as follows:
FV after 1 year = Invested amount * (100% + Year 1 interest rate)^Number of year = $5,000 * (100% + 9%)^1 = $5,450.00
FV after 2 years = FV after 1 year * (100% + Year 2 interest rate)^Number of year = $5,450 * (100% + 8%)^1 = $5,886.00
FV after 3 years = FV after 2 years * (100% + Year 3 interest rate)^Number of year = $5,886 * (100% + 12%)^1 = $6,592.32
FV after 4 years = FV after 3 years * (100% + Year 4 interest rate)^Number of year = $6,592.32 * (100% + 6%)^1 = $6,987.86
FV after 5 years = FV after 4 years * (100% + Year 5 interest rate)^Number of year = $6,987.86 * (100% + 15%)^1 = $8,036.04
Therefore, the future amount after 5 years is equal to $8,036.04.
Note: The number of year used in each of the calculation above is 1 because the interest was changing after one year.
g If the price elasticity of demand is 4, a 5 percent decrease in price will increase quantity demanded by
Answer: 20%
Explanation:
The price elasticity of demand shows the increase in quantity demanded as a result of a decrease in price and vice versa.
It is calculated by the formula:
Price elasticity of demand = Change in quantity demanded / Change in price
The formula can therefore be used to find the increase in quantity. Price elasticities are usually denoted in negatives even if not shown so:
-4 = x / -5%
x = -4 * -5%
x = 20%
A project requires a cost in Year O (right now) of $7M. The project will then provide a revenue of $3M per year for Years 1-3. Your discount rate is 15%. The NPV of the project is: Between 0 and $1M Less than zero Between $1M and $2M O More than $2M
Answer: Less than zero
Explanation:
Based on the information given, the NPV of the project will be calculated as the present value of cash flow earned minus the initial expenditure.
The present value of cash flow will be:
= 3/(1 + 15%)¹ + 3/(1 + 15%)² + 3/(1 + 15%)³
= 3/(1.15)1 + 3/(1.15)² + 3/(1.15)³
= 3/1.15 + 3/1.3225 + 3/1.520875
= 2.61 + 2.27 + 1.98
= $6.86 million
Then NPV will be:
= $6.86 million - $7 million
= -$1.14 million
Therefore, the correct option is "less than zero".
Assignable variation: leads to a steep OC curve. is a sign that a process is under control. is to be identified and investigated. is the same as random variation. is variation that cannot be traced to a specific cause.
Answer:
is to be identified and investigated
Explanation:
Assignable variation is the distribution of non-random outcomes that could caused due to the individual factor and can be identified
So as per the given situation, it required to be identified and investigated and the same should be removed or eliminated
hence, the above represent the answer
On January 1, a machine with a useful life of 4 years and a salvage value of $20000 was purchased for $84000. What is the depreciation expense for year 2 under straight-line depreciation
Answer:
Annual depreciation (2nd year)= $16,000
Explanation:
Giving the following information:
Purchase price= $84,000
Salvage value= $20,000
Useful life= 4 years
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= (Purchase price - salvage value)/estimated life (years)
Annual depreciation= (84,000 - 20,000) / 4
Annual depreciation= $16,000
Somebody please help me with Game Design I can’t take it anymore I’m stressed bro
1. make the game world more engaging or In what way can audio design for both sound and music intersect with GUI design?
2. Think about a game you’ve played with effective sound effects or a game you’d like to design. Propose or identify how that game used sound to:
a. give feedback to the player;
b. give hints about upcoming events; and
c. make the game world more engaging or immersive.
Answer:
i dont know
Explanation:
If the currency in circulation is $500 billion, the required reserve ratio is 5 percent, checkable deposits are $700 billion, and excess reserves total $10 billion, then the money multiplier for the M1 is
Answer:
2.35
Explanation:
The computation of the money multiplier for the M1 is shown below:
As we know that
Money supply(M1) = Currency in circulation + Checkable deposits
M1 money supply is = $500 billion + $700 billion
= $1,200 billion
Now the M1 money multiplier is
We know that
Money multiplier = Money supply ÷ Monetary base
where,
Monetary base = Currency in circulation + Bank excess reserves
= $500 billion + $10 billion
= $510 billion
We know that,
Money multiplier = Money supply ÷ Monetary base
= $1,200 ÷ $510
= 2.35
A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market rate of return is 12.5%
Answer:
4.8%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
16.35% = r + 1.5(12.5 - r)
16.35% = r + 18.75 - 1.5r
2.4 =0.5r
r = 4.8%
Dakota Company has four customers: A, B, C, and D. The accounts receivable balance in the general ledger is $9,083 and the accounts receivable subsidiary ledger of customers A, C, and D have $1,746, $3,296, and $3,940, respectively. Calculate the amount in the accounts receivable subsidiary ledger account of customer B.
Answer:
$101
Explanation:
Calculation to determine the amount in the accounts receivable subsidiary ledger account of customer B.
Using this formula
Customer B accounts receivable amount=Accounts receivable balance- A,C ,D Accounts receivable subsidiary ledger
Let plug in the formula
Customer B accounts receivable amount=$9,083-$1,746-$3,296- $3,940
Customer B accounts receivable amount=$101
Therefore the amount in the accounts receivable subsidiary ledger account of customer B is $101
Betsy Union is the Pika Division manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Pika Division is $46,000. Its current operating assets total $210,000. The division is considering purchasing equipment for $40,000 that will increase sales by an estimated $10,000, with annual depreciation of $10,000. If the equipment is purchased, what will happen to the return on investment for the division
Answer:
Pika Division
Betsy Union
The return on investment will reduce from 21.9% to 18.4%.
Explanation:
a) Data and Calculations:
Current controllable margin = $46,000
Current operating assets = $210,000
Current return on investment = $46,000/$210,000 * 100 = 21.9%
Increase in sales as a result of the new equipment = $10,000
Increase in depreciation = $10,000
Operating assets after the purchase of the new equipment = $250,000 ($210,000 + $40,000)
Future controllable margin = $46,000 ($46,000 + $10,000 - $10,000)
Future return on investment = $46,000/$250,000 * 100
= 18.4%
The "Danger Zone" is between what temperature range?
Answer:
41-135
Explanation:
Hello, there mate! The answer to this question is 41 - 135. In between these temperatures, bacteria flourishes the most. The ServSafe food guide states that the Danger Zone is 41 - 135 degrees, so you should not cook or store poultry or other foods in these temperatures. When you cook, it should be above 140, and when you freeze, it should be below 41. I hope I helped.
Assume the total cost of a college education will be $184,061 when your child enters college in 19 years. You presently have $49,327 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Enter answer as 3 decimal places (e.g. 0.123)
Answer:
Interest rate = 0.9313
Explanation:
Future value or the cost of edcuation after 19 years = $184061
Present value, money in hand at present = $49327
Time period, n = 19
Future value = Present value (1 + r)²
184061 = 49327 (1 + r )²
(1 + r )² = 184061 ÷ 49327
(1 + r )² = 3.73
(1 + r) = √3.73
(1 + r) = 1.9313
r = 1.9313 - 1
r = 0.9313
Or Interest rate = 0.9313
Under FINRA rules, if a member suspects that a senior citizen is being financially exploited: A a freeze can be placed on all disbursements from the account for up to 10 business days B a freeze can be placed for up to 10 business days on suspicious disbursements from the account, but not on other non-suspicious disbursements C a freeze can be placed on all disbursements from the account for up to 15 business days D a freeze can be placed for up to 15 business days on suspicious disbursements from the account, but not on other non-suspicious disbursements Review
Answer: D. a freeze can be placed for up to 15 business days on suspicious disbursements from the account, but not on other non-suspicious disbursements
Explanation:
Under FINRA rules, if a member suspects that a senior citizen is financially exploited, the following can occur:
• a freeze can for up to 15 business days can be placed on the suspicious disbursement.
• Another 10 days can be added in case if the review of a member is supported.
• The disbursements will be from the account, but not on the other non-suspicious disbursements.
Therefore, based on the above, the correct option is D.
A corporation has issued $100 par, 8% convertible preferred stock, callable at par. The preferred is convertible into 1.4 shares of common stock. Currently, the preferred stock is trading at $105 while the common stock is trading at $72.75. The corporation calls the preferred stock at par. To realize the largest profit, a customer holding 100 shares of preferred stock should:
Answer:
The should sell short all the common stock and thereby convert the preferred stock for delivery in order to cover the short
Explanation:
Based on the information given in order to To realize the largest profit, a customer that purchased 100 shares at par should sell short all the COMMON STOCK and thereby convert the PREFERRED STOCK for delivery in order to cover the all short of the common stock.
On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 5,694,713 1 213,000 227,789 14,789 5,709,502 2 213,000 228,380 15,380 5,724,882 3 213,000 228,995 15,995 5,740,877 4 213,000 229,635 16,635 5,757,512 5 213,000 230,300 17,300 5,774,812 6 213,000 230,992 17,992 5,792,804 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 213,000 276,119 63,119 6,966,089 39 213,000 278,644 65,644 7,031,733 40 213,000 281,267 68,267 7,100,000 Required: 1. What is the face amount of the bonds
Answer:
1. $7,100,000
2. $5,694,713
3. 20 years
4. Effective interest method
5. 6%
6. 8%
7. $8,520,000
8. $9,925,287
Explanation:
1. Based on the information given the FACE AMOUNT of the bonds will be the Ending outstanding balance of $7,100,000
Therefore the face amount of the bonds is $7,100,000
2. Based on the information given the INITIAL SELLING PRICE of the bonds will be the beginning Outstanding balance of $5,694,713
Therefore Initial Selling Price of the bonds is $5,694,713
3. Calculation to determine the term to maturity in years
Term to maturity=40 years/2 (Semi annually)
Term to maturity=20 years
Therefore the term to maturity in years is 40 years
4. Interest is determined by EFFECTIVE INTEREST METHOD approach
5. Calculation to determine the stated annual interest rate
Annual interest rate=$213,000/$7,100,000*2
Annual interest rate=6%
Therefore the stated annual interest rate is 6%
6. Calculation to determine effective annual interest rate
Effective Annual interest rate=$227,789/$5,694,713*2
Effective Annual interest rate=8%
Therefore effective annual interest rate is 8%
7. Calculation to determine the total cash interest paid over the term to maturity
Total cash interest paid=$213,000*40
Total cash interest paid=$8,520,000
Therefore the total cash interest paid over the term to maturity is $8,520,000
8. Calculation to determine the total effective interest expense recorded over the term to maturity
Effective interest expense=$8,520,000+($7,100,000-$5,694,713)
Effective interest expense=$8,520,000+$1,405,287
Effective interest expense=$9,925,287
Therefore the total effective interest expense recorded over the term to maturity is $9,925,287
ensen Enterprises paid $1,300 in dividends and $920 in interest this past year. Common stock increased by $1,200 and retained earnings decreased by $310. What is the n
Answer: $990
Explanation:
Based on the information that we are given in the question, the net income will be calculated as:
= Dividends + Retained earnings
= $1300 + (-$310)
= $1300 - $310
= $990
Therefore, the net income is $990.
Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Answer:
Results are below.
Explanation:
First, we need to calculate the break-even point in units and sales dollars:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 354,000 / (175 - 116)
Break-even point in units= 6,000
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 354,000 / (59 / 175)
Break-even point (dollars)= $1,050,000
Now, the margin of safety and margin of safety rate:
Margin of safety= (current sales level - break-even point)
Margin of safety= (10,000*175) - 1,050,000
Margin of safety= $700,000
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= 700,000 / 1,750,000
Margin of safety ratio= 0.4= 40%
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 45,000 for January, 55,000 for February, and 50,000 for March. Cost of goods sold is $14 per unit. Other expense information for the first quarter follows. Commissions 8 % of sales dollars Rent $ 14,000 per month Advertising 15 % of sales dollars Office salaries $ 75,000 per month Depreciation $ 40,000 per month Interest 5 % annually on a $250,000 note payable Tax rate 30 % Prepare a budgeted income statement for this first quarter. (Round your final answers to the nearest whole dollar.)
Answer:
Fortune, Inc.
Budgeted Income Statement for the first quarter
Sales Revenue $3,750,000
Cost of goods sold 2,100,000
Gross profit $1,650,000
Expenses
Sales commission 300,000
Rent 42,000
Advertising 562,250
Office salaries 225,000
Depreciation 120,000
Interest 3,125
Total expenses $1,252,375
Income before tax $397,625
Tax (30%) 119,288
Net income $278,337
Explanation:
a) Data and Calculations:
Selling price per unit = $25
January February March Total
Sales (in units) 45,000 55,000 50,000 150,000
Sales revenue $1,125,000 $1,375,000 $1,250,000 $3,750,000
Cost of goods sold 630,000 770,000 700,000 2,100,000
Gross profit $495,000 $605,000 $550,000 $1,650,000
Expenses:
Sales commission $90,000 $110,000 $100,000 $300,000
Rent expense 14,000 14,000 14,000 42,000
Advertising expense 168,750 206,250 187,500 562,250
Office salaries 75,000 75,000 75,000 225,000
Depreciation 40,000 40,000 40,000 120,000
Interest expense 3,125
Total expenses $1,252,375
Income before tax $397,625
Tax (30%) 119,288
Net income $278,337
Tradable permits are likely to result in less inefficiency, relative to a pollution tax, when ... a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable. b. the marginal costs of damages are steep and the marginal costs of pollution reduction are steep. c. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable. d. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep. e. the marginal costs of damage are elastic and the marginal costs of pollution reduction are also elastic.
Answer:
a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.
Explanation:
Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.
Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.
This ultimately implies that, an offset trading is a strategic program that allows emerging business firms to pay existing business firms in order to significantly reduce their emissions or pollutants below a specific standard.
Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.
Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.
A pollution tax can be defined as a type of tax imposed on business firms that causes pollution and damages to the environment. It is also referred to as Pigovian tax which is a tax on goods with negative externality.
Hence, tradable permits when compared with pollution tax are likely to result in less inefficiency, when the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.
assume a company uses the weighted average method in its processing costing august 1 balance 62000 and materials 310,000 consisted of 6000 units with 40500 in materials during august 48000 units were installed into production consisted of 8000 units that were 100% with respect to mateirals the materials cost included in the refining departement ending work in process inventory is closest to
Answer:
see explanation
Explanation:
Hi, your question is incomplete, I tried to look for it online but I could not find it. Here is an explanation on the steps to solve the problem.
Step 1 : Determine the Total Materials Cost
Total Materials Cost
Opening WIP cost $310,000
Costs added during the period $40500
Total $350,500
Step 2 : Total Equivalent units for materials
Equivalent units for materials = Completed units + Equivalent units in ending work in process inventory.
Step 3 : Unit equivalent cost for materials
Unit equivalent cost = Total Cost ÷ Total equivalent units
Step 4 : ending work in process inventory cost
Ending work in process inventory = Unit equivalent cost x equivalent units in ending work in process with respect to materials
A security with only diversifiable risk has an expected return that exceeds the riskfree rate of return
State whether the following is inconsistent with an efficient capital market, the CAPM, or both:
Security with only diversifiable risk has an expected return that exceeds the riskfree rate of return
Answer:
This statement is inconsistent with both.
Explanation:
The statement made in the question is inconsistent with both the Capital Asset Pricing Model (CAPM) and an efficient capital market because both models state that the cost of capital depends only on systematic risk or non-diversifiable risk. Thus the statement contradicts the models of the CAPM and Efficient Capital Market.
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $676 million in sales of this type. Scheduled collections for these sales are as follows:
2021 $83 million
2022 137 million
2023 129 million
2024 162 million
2025 165 million
$676 million
Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes.
Required:
What deferred tax liability would Isaac report in its year-end 2021 balance sheet?
Answer:
$148.3 million
Explanation:
Calculation to determine the deferred tax liability that Isaac would report in its year-end 2021 balance sheet
Using this formula
Deferred tax liability=Total future taxable income × Tax rate
Let plug in the formula
Deferred tax liability=(2022 137 million+2023 129 million+2024 162 million+2025 165 million)*25%
Deferred tax liability=$593 million*25%
Deferred tax liability=$148.3 million
Therefore the deferred tax liability that Isaac would report in its year-end 2021 balance sheet is $148.3 million
You have been given $5 million to market Kaiser health insurance to new college graduates in California. Briefly mention how you will spend the $5 million in an attempt to motivate new graduates to sign up for Kaiser health insurance. Include a brief rationale for your marketing plan.
Answer:
You have been given $5 million to market Kaiser health insurance to new college graduates in California. Briefly mention how you will spend the $5 million in an attempt to motivate new graduates to sign up for Kaiser health insurance. Include a brief rationale for your marketing plan.
When your father was born 48 years ago, his grandparents deposited $250 in an account for him. Today, that account is worth $36,500. What was the annual rate of return on this account
Answer:
10.94%
Explanation:
Your father was born 48 years ago
His grandfather deposited $250 in an account for him
Today the money is worth $36,500
The annual rate of his return can be calculated as follows
= 36500/250 ×1/48= (1+r/100)
= 146^0.020833= (1+r/100)
= 1.1094-1
= 0.10940×100
= 10.94%
The competitive industry of children's pajamas is in long-run equilibrium when a new government safety regulation raises the average cost of children's pajamas by $2 per pair. If this is a constant cost industry, then what happens to the price of children's pajamas in the long run?
Answer:
Long-run profits will remain the same.
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Cathay Pacific Airlines determined that many travelers were avoiding Hong Kong because of lengthy delays at immigration. The company addressed the problem by helping the Government to hire additional inspectors. This is an example:
Answer:
Proactive Environmental Response
Explanation:
Given that Proactive Environmental Response is a form of the strategy employed by organizations to tackle many issues relating to production and business process, such as resource productivity, material exchanges, innovative manufacturing process, etc.
Hence when the Cathay Pacific Airlines company addressed the problem described in the question by helping the Government to hire additional inspectors, the purpose is to improve resource productivity in its immediate environment which is an example of "Proactive Environmental Response."