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2 years ago

Farmers can raise either goats or ostriches on their land. Which of the following would cause the supply of goats to decrease?

Business

1 answer:

Mandarinka [93]2 years ago

4 0

Answer:

5) an increase in the price of ostriches.

Explanation:

Ostriches and goats in this example are subsituites goods. If a farmer raises one of the animals, he can't raise the other animal.

An increase in the price of ostriches, would increase the revenue farmers can earn from raising ostriches and this would lead to an increase in the supply of ostriches and a fall in the supply of goats.

A decrease in the price of goats leads to fall in the quantity supplied of goats.

An increase in the price of ostrich feed makes raising ostriches more expensive. Farmers would shift to the production of goats instead as a result and the supply of goats rises.

An increase in the demand for goats increases the supply of goats.

I hope my answer helps you

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An arm loan has a 4.00% start rate, and it is time for the first adjustment to be made. it has a periodic cap of 1% and a lifeti

Lena [83]

The rate after its first adjustment is 5%. The ARM adjustment would be controlled by the periodic cap, because the "true rate" or "fully-indexed rate" is 6.00% (1%+5%). Because the periodic cap prevents the start rate from moving any more than 2% at any given adjustment, the first move can only go as high as 5.00%.

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2 years ago

Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoe

jenyasd209 [6]

Revenue: $500,000

Shoes: $250,000

Shoe boxes: $1,000

Advertising: $500

Rent: $1,000

Depreciation: $25

Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion?

A. 25.13% more shoes

B. 20.08% more shoes

C. None of the above, but I could calculate this with the information I am given.

D. None of the above, I cannot calculate this with the information I am given.

Answer:

Option A. 25.13% more shoes

Explanation:

Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.

The Benefit drawn before 10% promotion proposal:

Revenue: $500,000

Shoes: ($250,000)

Shoe boxes: ($1,000)

Advertising: ($500)

Rent: ($1,000)

Depreciation: ($25)

Profit $247,475

The Benefit drawn before 10% promotion proposal:

Revenue: $450,000

Shoes: ($250,000)

Shoe boxes: ($1,000)

Advertising: ($500)

Rent: ($1,000)

Depreciation: ($25)

Profit $197,475

Now we can calculate how much additional sales must be required to justify the promotion.

Sales Increase Required = (Initial Profit - Before Promotion) / Profit After Promotion

Sales Increase Required = ($247,475 - $197,475) / $197,475

Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.

3 0

2 years ago

EXERCISE 5-11 Missing Data; Basic CVP Concepts LO5-1 LO5-9 Fill in the missing amounts in each of the eight case situations belo

irina1246 [14]

Answer:

Explanation:

A) contribution per unit:

(180,000 - 120,000) / 15,000 = $4

B) net income: 180,000 - 120,000 - 50,000 = 10,000

C) units sold: contribution x units - fixed cost = income

$10 x units sold - 32,000 = 8,000

units sold: 4,000

D) variable cost:

(sales - expense) / units = contribution per unit

(100,000 - expense)/4,000 = 10

expense = 60,000

E) sales:

contribution x units + expense

10,000 x $13 + 70,000 = 200,000

F) fixed expense:

units x contribution - fixed = income

10,000 x $13 - fixed = 12,000

130,000 -12,000 = fixed = 118,000

H) contribution margin unit

contribution x units - fixed cost = income

6,000 x contribution - 100,000 = -10,000

contribution = 90,000 / 6,000 = 15

G) variable expenses:

sales = variable expense + contribution x units sold

300,000 = var expense + 15 x 6000

variable expense = 210,000

5 0

2 years ago

John bought a waterfront lot with a setback requirement of 50 feet from the street. the lot is only 100 feet deep and drops off

LenKa [72]

He would apply for a variance. This would allow John to deviate from the current zoning laws as set by the location that he is living in. This variance would give John the ability to build his home to the dimensions required by the land, as well as still being able to meet the specifications he is wanting.

3 0

2 years ago

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below

RideAnS [48]

Answer:

137,000

Explanation:

Jan Feb March

Units produced 94000 80000

Raw materials 26,000

Raw materials 213800 239800 295800

Ratio of raw material to a product is 2:1

Ending inventory = 30% of next month production

Represent budgeted production in February by F

239800=2F + (80000*2*30%)-(2F*30%)

239800 = 2F +48000 =0.6F

239800-48000=2F-0.6F

191800=1.4F

F= 191800/1.4 =137000

7 0

2 years ago