A bank estimates that its profit next year is normally distributed with a mean of 0.8% of assets and the standard deviation of 2% of assets. How much equity (as a percentage of assets) does the company need to be (a) 99% sure that it will have a positive equity at the end of the year and (b) 99.9% sure that it will have positive equity at the end of the year

Answer:

The correct answer is letter "C": Partnership.

Explanation:

A Partnership is an organization where two or more owners operate a business. They share the profits in proportion to their percentage partnership interest. There are two types of partnerships: General Partnerships (unlimited liability) and Limited partnerships (liability proportional to the percentage contribution of the partnership).

Answer:

Total amount after 45 years will be equal to $12+0147.1

Explanation:

We have given initial amount, that is principal value P = $60000

Expected rate of return r = 7 %

Time period n = 45 years

We have to find the amount after 45 years , that is future value

Future value is given by

[tex]A=P(1+\frac{r}{100})^n[/tex], here A is future value P is present value r is rate of interest and n is time period

So [tex]A=60000\times (1+\frac{7}{100})^{45}[/tex]

[tex]A=60000\times 1.07^{45}[/tex]

[tex]A=60000\times21=1260147.1[/tex] $

So total amount after 45 years will be equal to $12+0147.1

The future value of $60,000 invested at a 7% annual return over 45 years is calculated using the compound interest formula, yielding a value of approximately $2,007,138 at retirement.

To calculate the future value of a $60,000 lottery winning invested in a retirement account that returns 7% per year over 45 years, we use the formula for compound interest:

FV = P(1 + r)^n

Where:

Plugging in the values, we get:

FV = $60,000(1 + 0.07)^{45}

Calculating this yields:

FV = $60,000(1 + 0.07)^{45} = $60,000(1.07)^{45}

Which equals:

$60,000 x 33.4523 = $2,007,138

The lottery winnings are therefore expected to be worth $2,007,138 when you retire in 45 years.

Final answer:

Supply is  (B) the amount of some good or service a producer is willing to supply at each price,

Explanation:

Supply concept is essential to understanding market dynamics and is closely related to demand. The supply curve shows the relationship between the price of a good or service and the amount a producer is willing to supply. When the price of a product rises, producers are generally willing to supply more, indicating a positive relationship between price and quantity supplied. The equilibrium price is established when the quantity demanded by consumers equals the quantity supplied by producers.

If the quantity supplied surpasses the quantity demanded, it results in excess supply, while the opposite scenario results in excess demand. A supply schedule is a table that illustrates the quantity of goods a producer is willing to supply at various prices, keeping other factors constant. If the price of the good changes, there is a movement along the supply curve, referred to as a change in the quantity supplied.

Answer:

The correct answer is letter "C": brief.

Explanation:

An appellant's brief is a legal document one of the parties of a trial may submit to change the decision taken by a Court. Just like its name indicates, it is a summarized statement used by the appellant to expose the reason why they believe the decision concluded by the Court is incorrect.

The correct answer is (c) Brief. In appellate procedures, each party files a brief that contains a short summary and legal points and arguments for either reversing or affirming a lower court's decision.

In appellate procedures, each party submits a brief. This document contains a short description of the case, a factual summary, legal points and authorities, and arguments for reversing or affirming a lower court decision. The option (c) 'brief' is correct. An affidavit (option a) is a sworn written statement of fact, while a caucus (option b) is a meeting of party members. A deposition (option d) refers to the formal statement of a witness, and a motion (option e) is a procedural step taken to decide an issue in a lawsuit.

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Answer:

e. Tips and gratuities

Explanation:

You must include in your gross income all wages and benefits, salaries and tips received in respect of performance services as an employee. Once you get tips, the tip money you get will be payed by you for Medicare and social security. For the IRS, tips is just like wages to become a taxable income.

Tips and gratuities are not excluded from gross income and are considered taxable income, unlike the other mentioned amounts such as veterans' benefits, child support payments, gifts, and scholarship grants for tuition which are typically not taxed.

The question asks which of the following amounts are excluded from gross income, except:

All of the mentioned amounts are generally excluded from gross income except for tips and gratuities, which are considered taxable income and must be reported. Tips and gratuities are commonly received by employees in certain industries like hospitality and service sectors and are subject to income tax; therefore, they are not excluded from gross income.

To determine if Sharon Jones owes taxes or will receive a refund for 2019, her gross income is adjusted by deducting the deductions for AGI and her itemized deductions. The final tax liability is then compared with her withholdings to ascertain the outcome. Without exact tax rates, a specific amount cannot be given, but this provides the method for calculation.

To determine whether Sharon Jones has a tax due or a refund for the tax year 2019, we must first calculate her taxable income and then apply the appropriate tax rates and credits. We start with her gross income of $159,800 and subtract the deductions for AGI ($5,500) and her itemized deductions ($14,000), since the question indicates she itemizes her deductions rather than taking the standard deduction. It's important to note that without the specific tax brackets and rates for 2019, an exact tax liability cannot be calculated in this response. However, the method involves subtracting deductions from the gross income to find the taxable income, then applying the tax rates to this amount, subtracting tax credits, and finally comparing the tax liability with the amount withheld ($22,000) to determine if a refund is due or additional tax is owed.

The general formula to estimate tax owed or refund is:

Taxable Income = Gross Income - Deductions for AGI - Itemized (or Standard) Deductions

Then, calculate the tax on this taxable income, subtract the credits, and finally compare the result with the amount withheld. If the withholding is more than the calculated tax after credits, Sharon would receive a refund. If the withholding is less, she would owe additional tax.

Answer:

304,100

Explanation:

The amount in the ending work in process inventory of the Assembly Department is a is the result of the opening or beginning work in progress of the department added to the units transferred from a prior department less the units transferred to the next processing department.

As such, let the units transferred to the next processing department be r,given that the Assembly Department started the month with 24,100 units in its beginning work in process inventory, an additional 309,100 units were transferred in from the prior department during the month to begin processing in the Assembly Department and there were 29,100 units in the ending work in process inventory of the Assembly Department

24,100 + 309,100 - r = 29,100

r = 24,100 + 309,100 - 29,100

r = 304,100 units

The number of units transferred to the next processing department during the month is 304,100.

The number of units transferred to the next processing department during the month is 304,100 units, calculated by subtracting the ending work in process inventory from the total units accounted for in the Assembly Department.

The student's question involves calculating the number of units transferred to the next processing department during the month in the context of an Assembly Department's production process. To find this number, you'll need to account for the units that were started and completed during the month. The calculation is as follows: Begin with the total number of units that entered the assembly process (both the beginning inventory and those transferred in), then subtract the number of units in ending inventory to determine the units that were completed and transferred to the next department.

To perform the calculation: The beginning work in process inventory was 24,100 units, and an additional 309,100 units were transferred in. Thus, the total units to account for during the month were 24,100 + 309,100 = 333,200 units. The ending work in process inventory was 29,100 units. Therefore, the number of units transferred to the next department is the total units accounted for minus the ending inventory, which equals 333,200 - 29,100 = 304,100 units.

Answer:

70.83%      

Explanation:

Given that,

Company's assets = $1,200

Equity = $350

Dept = Reported assets - Company's equity

        = $1,200 - $350

        = $850

Dept ratio = (Debt ÷ Total assets) × 100

                 = ($850 ÷ $1,200) × 100      

                 = 0.7083 × 100

                 = 70.83%      

Therefore, the Dept ratio of Converse Florists​ & Co. is 70.83%.

Answer:

d. First Quarter Sales exceed projections.

Explanation:

The message from the vice president sales should be formal and concise. It should convey the content of mail to the reader so that personnel that are reading it will have a summarised idea of what the mail is all about.

First Quarter Sales exceed projections - expresses this well. The content of the mail is the first quarter sales details and the fact that the company exceeded projections is also stated.

The other options Good News, FYI, and Sales Figures does not convey the content of the mail effectively.

The most effective subject line for a good-news message about first-quarter sales would be 'First Quarter Sales exceed projections'. This subject line is informative, attention-grabbing, and hints at the content of the message.

The best subject line for your message would be 'First Quarter Sales exceed projections'. This option not only brings out the good news but also provides specific details about what the good news is. It captures the reader's attention immediately and induces them to read further to get more details of this positive news. For example, how much did the sales exceed the projections by, what contributed to this significant achievement, etc. This subject line gives direct information about the first quarter sales and that they have been better than expected, encouraging the reader to find out more about this success.

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Answer:

$392,600

Explanation:

Given that,

On December 31, 2013, balance sheet showed net fixed assets = $1,238,000

December 31, 2014, balance sheet showed net fixed assets = $1,416,000

Depreciation expense 2014 = $214,600

Firm's net capital spending for 2014:

= Net fixed assets on December 31, 2014 - Net fixed assets on December 31, 2013 + 2014 Depreciation expense

= $1,416,000 - $1,238,000 + $214,600

= $392,600

Therefore, the firm's net capital spending for 2014 is $392,600.

Answer:

Diminishing returns set in when the firm hires four laborer

Explanation:

given data

one laborer produces =  6 unit

two laborer produces = 14 unit

three laborer produces = 22 unit

four laborer produces = 24 unit

five laborer produces = 25 unit

solution

we know that in the Diminishing returns it is refer to that fact when once it hit an certain point than each of the additional units give it less and the less returns for money

so here when one laborer 6 unit produce so when two it is more 8 more and when three than 8 but when four labor than it is 2 more production only  

so here Diminishing returns set in when the firm hires four laborer

Final answer:

Diminishing marginal productivity begins after the hiring of the third laborer, as the fourth laborer adds significantly less output than the previous one, indicating a decrease in additional output per worker.

Explanation:

The subject in question involves the concept of diminishing marginal productivity, which falls under the realm of economics, a subfield in business education. This concept states that there is a general rule that as a firm employs more labor, the amount of additional output produced by each extra worker eventually starts to decline.

When analyzing the production information provided, we need to compare the additional output (marginal product) each worker provides to the total output (total product). Diminishing returns set in when the additional output gained from hiring one more laborer is less than the marginal product of the laborer hired before them.

In this case, one laborer produces 6 units of output, while two laborers produce 14 units, so the second laborer's marginal product is 8 units (14 units - 6 units). The third laborer's marginal product is 8 units as well (22 units - 14 units). However, when the fourth laborer is hired, the total output increases to only 24 units, so the marginal product of the fourth laborer is 2 units (24 units - 22 units), indicating a significant decrease. Thus, the diminishing marginal productivity kicks in after the third laborer is hired.

The reasoning behind this is that in the short run, labor is the only variable factor, and each additional worker contributes less to the total output due to the fixed capital. This situation often leads to workers performing less essential tasks, like stocking shelves or answering phones, hence causing diminishing returns.

To calculate the various manufacturing costs for Foxboro Manufacturing Company, you sum up direct labor, overhead costs, and direct materials used; calculate work-in-process; and factor in beginning and ending inventories to find cost of goods manufactured and sold, as well as total prime and conversion costs.

Calculating Costs in Manufacturing

The goal is to calculate various manufacturing costs for Foxboro Manufacturing Company using the given inventory and cost data.

Here are the computations for each requirement:

Total manufacturing costs incurred during the year is the sum of direct labor costs incurred, manufacturing overhead costs, and the total cost of direct materials used.

Direct materials used is calculated as the beginning direct materials inventory plus direct materials purchased minus ending direct materials inventory: (250,800 + 1,750,200 - 169,400).

Total work-in-process during the year is the sum of total manufacturing costs and the beginning work-in-process inventory minus the ending work-in-process inventory.

Cost of goods manufactured during the year is the total work-in-process during the year added to the beginning work-in-process inventory and then subtracting the ending work-in-process inventory.

Cost of goods sold during the year is the cost of goods manufactured plus beginning finished goods inventory minus ending finished goods inventory.

Total prime costs for the year is the sum of direct labor and direct materials used.

Total conversion costs for the year is the sum of direct labor costs and manufacturing overhead costs.

After calculating all the above, we get a clear picture of how the production costs are distributed across materials, labor, and overheads resulting in the cost structure for Foxboro Manufacturing Company.

Answer:

To enforce this promise we need to analyse whether there has been any agreement or contract between Sarah and Odessa and whether the same can be enforced.

Explanation:

In Sarah's case, her offer to gratuitously pay the neighbor for assisting in the house fire is not an enforceable contract. When the neighbor rushed to help in the fire, the offer to pay $1,000 had not yet been extended. When Sarah did extend the offer to pay $1,000, there was no consideration exchanged between both parties. The consideration, putting out the fire, had already occurred without the offer or acceptance of a contract.

Consider an alternate scenario. Sarah's house was on fire, and she could not wait for the fire department. She ran to her neighbor's house, begged for help, and offered $1,000 in exchange for neighbor's assistance. After hearing Sarah's plea, the neighbor agrees to assist in extinguishing the fire. This constitutes a contract; an offer, consideration, and acceptance.

Final answer:

Sarah's promise to pay Odessa $1,000 for extinguishing a fire is not enforceable since it is a gratuitous promise without consideration. Odessa did not provide anything of value after the promise was made, and the information given does not suggest detrimental reliance, which could have made promissory estoppel applicable.

Explanation:

Under the principle of contract law, a promise is generally not enforceable without consideration, which means that each party must contribute something of value or undertake an obligation they are not otherwise required to. In the scenario presented with Sarah and Odessa, Sarah's promise to pay $1,000 to her neighbor Odessa for extinguishing a fire is a classic example of what is known as a gratuitous promise. Since Odessa had already extinguished the fire, she did not provide any consideration after the fact, making the promise akin to a gift rather than an enforceable contract.

A different outcome might be possible if Odessa extinguished the fire in reliance on the promise and this reliance was to Odessa's detriment, potentially giving rise to an argument based on promissory estoppel. However, based on the information given, which does not suggest such detrimental reliance, the promise is not enforceable and is purely gratuitous, meaning Odessa cannot legally enforce Sarah's promise to pay the $1,000.

Answer:

False.

Explanation:

Soceital marketing is the concept that marketing should not only consider the consumer's need for satisfaction and the companie's goal of maximising profit, but also societie's long term goals.

Soceital marketing is concerned with companies identifying the wants and needs of particular target maket, and providing products in such a way that the target market is satisfied. The well-being of the consumer and society at large is enhanced.

Answer:

D. Order the parties to arbitrate

Explanation:

Under an arbitration agreement, the parties to such a contract mutually agree to settling future disputes outside court.

Like every contract, such a contract is legally binding and the terms cannot be revoked by one of the parties later. The parties are bound by arbitration in such cases, as is mutually agreed initially.

As per the facts of the case, such an arbitration agreement has been entered into by Jan and Kyle, wherein it was mutually agreed to settle outside court, in the event of a dispute. When the said dispute arose, Jan filed a suit against Kyle.

In such a scenario, the court will likely D. Order the parties to arbitrate.

Answer:

2. a demand curve

Explanation:

Answer:

The how to produce question

Explanation:

When making a choice of how to produce goods and services, there are two considerations. Will method of production be labor based or capital intensive?

For labor based production it makes use of more labor and less capital of machinery. This is exemplified by the teller making payments.

Capital intensive means of production uses more of capital means or machinery, for example where ATM machines are used to pay money.

Answer:

Y = $4,173 + ($5.13)X

Explanation:

A fixed monthly operating cost of $4,173 is a monthly cost that will not change no matter the number or unit of t-shirt produced, while $5.13 is the variable costs of making each t-shirt. This can be presented in a linear equation as follows:

Y = a + bX .............................. (1)

Where,

Y = Total monthly cost of producing shirts

a = fixed cost = $4,173

b = variable cost of each shirt = $5.13

X = number of shirts produced

Using the values already given, equation (1) can be rewritten as follows:

Y = $4,173 + ($5.13)X .............................. (2)

Equation (2) is the required linear equation.

The Income Elasticity of Demand for bagels is 0.67, meaning Alex's consumption of bagels increases with income. On the other hand, the Income Elasticity of Demand for donuts is -0.4, indicating that as Alex's income increases, his consumption of donuts decreases.

The subject of this question is the calculation of the Income Elasticity of Demand for bagels and donuts based on changes in Alex's income. The Income Elasticity of Demand measures the responsiveness of the quantity demanded for a good as a result of a change in income.

Now, let's calculate the Income Elasticity of Demand. The formula is: Income Elasticity of Demand = (% change in Quantity Demanded) / (% change in Income)

For bagels: Income Elasticity of Demand = ((10-6)/6) / ((4000-2000)/2000). That equals 0.67. Alex's consumption of bagels is income elastic because the Income Elasticity of Demand is greater than zero, meaning that as his income increases, he consumes more bagels.

For donuts: Income Elasticity of Demand = ((9-15)/15) / ((4000-2000)/2000) = -0.4. Alex's consumption of donuts is income inelastic because the Income Elasticity of Demand is less than zero, indicating that as his income increases, he consumes fewer donuts.

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Answer:

The share at the current year will be worth $ 17.23

Explanation:

We solve for the earnins in four years:

[tex]1.15 \times (1+0.4)^3(1+0.03)^1=FV[/tex]

Earnigns at 4th year: 3.250268

We pay 75% which is: 3.25 x 75% = 2.44

Now we use the gordonal model:

[tex]\frac{Dividends}{return - grow}[/tex]

2.44 / (0.12 - 0.03) = 2.44/0.09 = 27.11

Last, we discount this as it is 4 years into the future.

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]  

Maturity  $27.1100

time  4.00

rate  0.12000

[tex]\frac{27.11}{(1 + 0.12)^{4} } = PV[/tex]  

PV   17.2289

The value of a Sinclair Pharmaceuticals share today can be calculated using a combination of the Dividend Discount Model and the Gordon Growth Model, taking into account the high growth over the next three years followed by a steady growth, and also the company's decision to start pay dividends after 4 years.

The value of a share for Sinclair Pharmaceuticals today can be calculated using the Dividend Discount Model (DDM). The DDM is a method of valuing a company's stock by using predicted dividends and discounting them back to present value. First, we need to calculate the expected earnings for the first three years when the annual growth is 40%, and then for the years after that when the annual growth is 3%.

Since Sinclair will not pay dividends for the first three years, and all earnings will be reinvested, dividends will start at year 4. The dividend in year 4 will be 75% of the earnings in that year. This dividend can then be discounted back to present value using the 12% equity cost of capital.

The value of the Sinclair Pharmaceuticals shares after year 3 can be calculated by using the Gordon Growth Model, which is a version of the DDM that assumes a constant rate of dividend growth. The present value of these future dividends can then be calculated using the 12% equity cost of capital.

The total value of a Sinclair Pharmaceuticals share today is then the sum of the present value of the dividends for year 4 and the present value of the dividends from year 5 and onwards.

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Answer:

True.

Explanation:

Indirect cost are cost incurred in the production process that cannot be traced directly back to the product, but contributes to the production process in general. For example the salary of wages is not a cost that is directly included in the product itself, but workers are needed to perform tasks and operate the machines that produce the product.

Direct cost are traceable directly to the product and include raw material.

So overhead, facilities and resource opportunity cost are all indirect cost in producing the product.

Answer:

$14,536

Explanation:

The total manufacturing cost of job 651 is determined by the sum of the direct materials, labor and machine costs:

Direct materials cost = $7,200

Direct labor cost = 179 hours x $23/hour

Machine cost = 87 hours x $37/hour

[tex]C=\$7,200 +(179*\$23)+(87*\$37)\\C=\$14,536[/tex]

The total manufacturing cost of Job​ 651 is $14,536.

Answer:

Audit is an independent examination of records,financial statements or process in order to give report to the party that has commissioned the audit

Explanation:

Audit can be of the three types highlighted in the question.

Audit of financial statements involves an external auditor examining the financial statements of clients i.e the income statement,statement of financial position.the cash flow statement as well statement of changes in equity e.t.c with a view to expressing an opinion on whether the financial statements show a true and fair view of the performance of the organisation audited and sometimes whether they were prepared in line with generally accepted accounting standards such as US GAAP.

Compliance audit is simply to find out whether the person audited has conformed with certain laid down policies and procedures such as the policies to follow in granting credit facilities to bank customers.

Process audit is about examining a process to see if the steps taken by the person carrying the tasks are logical and to find out areas for improvement in order to cut down time and resources used.

Answer:

b. He is retiring, so he no longer has a trade-off of missing practice or a game

Explanation:

First thing to establish is that the question is about seeing how an opportunity cost will have the decision of the pro-footballer on whether to move by himself or hire someone else.

As such, the opportunity cost (benefit foregone from an alternative) of moving on his own would usually mean to miss a practice or a game. In other words, the reason why he would have hired someone else in the first instance is so that he will not miss out of matches or practices.

If this assumption is followed, therefore, the best alternative is b. He is retiring, so he no longer has a trade-off of missing practice or a game.

Meaning, moving on his own will have no effect on his training or games since he is retiring.

Answer:

The correct answer is b. Matrix Project.

Explanation:

The correct answer to this question is matrix project. When project manager utilizes the skills and expertise of personnel from different functional areas within the organization, this is referred to as Matrix project. The different functional areas can include marketing, HR, Finance, Supply chain and others.

Answer:

1) decrease of equity:

2) increase of equity

3) increase of equity

Explanation:

1) the treasury stock decrase the equity outstanding

5,000 shares x $45 = $225,000

2) when we sale the sales our equity increase:

2,000 x 49 = 98,000

cost 2,000 x 45 = 90,000

we reocgnize an additional paid-in treasury stock for 8,000

as we cannot recognize a gain from selling our own shares

3) 500 x 40 = 20,000

cost 500 x 45 = 22,500

we decrease the addtional paid-in for 2,500 as we sale at "loss"

The treasury transactions include a purchase of shares, which reduces cash and increases treasury stock, and sales of shares, which increase cash and may affect additional paid-in capital and/or retained earnings depending on the sale price relative to the cost.

To determine the effect of treasury stock transactions on a company's financial statements using the cost method, we need to analyze each of the given transactions separately.

Answer:

BEP = 14.11%

ROE = 14.6%

ROIC = 10.60%

Explanation:

Calculate its basic earning power (BEP)

The formula for BEP is

BEP = EBIT / Total Assets

To find Total Assets, we can use the ROA formula:

ROA = Net Income / Total Assets

7% = $365,000 / Total Assets

Total Assets = $365,000 / 7%

                     = $5,214,285.714

Now, we must find the EBIT, which means Earnigns Before Interest and Taxes.

We have a net income of $365,000. The tax rate is 40%. We solve the following formula to find the tax expense:

Tax Expense = $365,000 / ((1 - 40%) / 40%)

                      = $243,333.333

Now, we add the net income, the tax expense that we found above, and the interest expense:

EBIT = $365,000 + $243,333.333 + $127,750

        = $736,083.333

Finally we can find the BEP:

BEP = $736,083.333 / $5,214,285.714

       = 0.1411

       = 14.11%

2) To find the return on equity, we must first find the common equity

Total Invested Capital = Total Assets - Accounts Payable and Accruals

                                     = $5,214,285.714 - $1,050,000

                                     = $4,164,285.714

Common Equity = Total Invested Capital x 60%

                           = $4,164,285.714 x 60%

                          = $2,498,571.428

Now we can solve for ROE

ROE = Net Income / Common Equity

       = $365,000 / $2,498,571.428

       = 0.1460

       = 14.6%

3) To find the return on invested capital, we use this formula:

ROIC = EBIT(1 - T) / Total Invested Capital

         = $736,083.333 (1 - 40%) / $4,164,285.714

         = 0.1060

         = 10.60%

Answer:(1) BEP = 0.12 (2) ROE = 0.09 (3) ROIC = 0.08

Explanation:

Since we are given 7% as ROA

Therefore to calculate total Asset

= Net income / ROA

= 365,000/ 0.07

= $5,214,285.71

To calculate tax expense

= Tax rate × Net income

= 40% × 365,000

= 0.4 × 365,000

= $146,000

EBIT = Net income + Tax expense + interest expense

= 365,000 + 146,000 + 127,750

=$638,750

BEP = EBIT/ Total Assets

= 638,750/5,214,285.17

=0.12

To calculate ROE

ROE = Net income / Shareholders Equity

To calculate shareholders Equity

=Total capital invested = Total Asset - Account payable

= 5,214,285.17 - 1,050,000

= $4,164,285.71

Common Equity = 4,164,285.71 × 60%

= $2,498,571.42

Debt = 4,164,285.71 × 40%

= 1,665,714.06

Shareholders Equity = Common Equity + Debt

= 2,498,571.42 + 1,665,714.06

=$4,164,285.48

ROE = Net income / Shareholders Equity

= 365,000/4,164,285.48

= 0.09

To calculate Return on invested capital

ROIC = Net income / Total invested capital

= 365,000/ 4,164,285.71

=0.08

Final answer:

The correct answer is (b) The equilibrium price is indeterminate and equilibrium quantity goes up, as the increase in income would decrease the demand for Top Ramen, an inferior good, while the decrease in the price of salt would increase its supply, influencing the equilibrium in opposite ways.

Explanation:

The question addresses changes in the equilibrium price and equilibrium quantity of Top Ramen, a brand of noodles considered to be an inferior good, when income increases and the price of salt decreases. An inferior good is one where demand decreases as income increases, while a decrease in the cost of salt, an input for Top Ramen, would likely lead to an increase in the supply of Top Ramen.

An increase in income would typically lead to a decrease in the demand for an inferior good, which would tend to decrease the equilibrium price and quantity. However, a decrease in the price of salt would increase the supply of Top Ramen, which would tend to increase the equilibrium quantity and decrease the equilibrium price. When combining these two economic movements, the equilibrium price becomes indeterminate because the effects on price from a demand decrease and a supply increase oppose each other.

On the other hand, the equilibrium quantity would definitely increase, because both the decrease in demand (which lowers quantity demanded at the original price) and the increase in supply (which raises quantity supplied at the original price) result in suppliers willing to sell more at the new, lower price that the market would settle at.

Therefore, the correct answer is: b. The equilibrium price is indeterminate and equilibrium quantity goes up.

Final answer:

With an increase in income, the demand for Top Ramen, an inferior good, will decrease, leading to a lower equilibrium quantity. The price of salt decreases, leading to an increase in supply, making the equilibrium price indeterminate. Thus, the equilibrium price is indeterminate and the equilibrium quantity goes down.

Explanation:

When considering the effect of a change in income on the demand for an inferior good such as Top Ramen, an increase in income typically leads to a decrease in demand since consumers will often opt for higher-quality substitutes. Since Top Ramen is considered an inferior good, we can predict that as income goes up, the demand for Top Ramen will go down. Conversely, a decrease in the price of salt, which is a cost component of producing noodles, would lead to an increase in the supply of Top Ramen as it becomes cheaper to produce.

Therefore, with an increase in income, the equilibrium quantity of Top Ramen is expected to decrease. However, the equilibrium price is indeterminate because while a decrease in demand would normally lead to a lower price, an increase in supply would tend to lower the price further. Ultimately, the combined effect of these two changes is uncertain on the price without additional information on the relative magnitude of the shifts in supply and demand.

In summary, the answer is - the equilibrium price is indeterminate and equilibrium quantity goes down.

Answer:

Explanation:

1. determine are the total dividend and the per-share dividends declared on each class of stock for each of the six years as follow:

Particulars  Preferred Dividends Common Dividends

Year Total Dividends Total Per Share Total Per Share

Year 1  $80,000         80000    0.32           0            0

Year 2  $90,000                90000    0.36           0            0

Year 3  $150,000        130000    0.52         20000    0.04

Year 4  $150,000        100000     0.4         50000     0.1

Year 5  $160,000        100000     0.4         60000     0.12

Year 6  $180,000        100000     0.4         80000     0.16

Total (a)  810000                600000     2.4         210000     0.42

Average (a/6 years)               0.4    0.07

2. Average annual dividend for preferred share is $0.40 per share and average annual dividend for common share is $0.07 per share.

3. The average annual percentage return on initial shareholders for preferred shareholder and common shareholders are 0.4% ($0.07/$17.50 x 100) and 1.6% ( $0.40/$25 x 100).

Answer:

As the further process makes an increase in the revenue of the product the company should continue the processing to achieve an additional 3,000 revenue from product C regardless of the cost associate at splitoff point.

It will increase operating income by 3,000

Explanation:

With the given information we can derive the following using a differential analysis:

Differential revenue:

71,000 - 53,000 = 18,000

Differential cost:   15,000 (cost of further process)

Differential gain:    3,000