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solong [7]
2 years ago
13

David walks Carolyn’s dog once a day for $50 per week. Carolyn values this service at $60 per week, while the opportunity cost o

f David’s time is $30 per week. The government places a tax of $35 per week on dog walkers. Before the tax, what is the total surplus?
Business
1 answer:
asambeis [7]2 years ago
6 0

Answer:

The total surplus is $30.

Explanation:

The total surplus before the tax is the sum of the producer surplus, and the consumer surplus.

In this case, the producer is David, who is walking the dog. David is making $50 per week for the task, while his opportunity cost (the value of his time if he did not walk the dog and did something else instead) is $30. As a result, his surplus, the producer surplus, is $20.

Carolyn, the consumer, is paying David $50, but she places a value of $60 on this activity, as a result, her surplus, the consumer surplus, is $10.

The sum of producer surplus ($20), and consumer surplus ($10), is $30.

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TufStuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of th
kozerog [31]

Answer:

It is more convenient to produce in house. But, the best option would be to produce 2,875 units and buy the rest of 3,375 demand.

Explanation:

Giving the following information:

Cost per drum:

Direct materials $45.40

Direct labor ($18 per hour) 4.50

Manufacturing overhead 4.05

Selling and administrative expense 16.30 70.25

Margin per drum $ 104.75

Management believes 3,375 WVD drums could be sold each year if the company had sufficient manufacturing capacity.

Harcor Industries, Inc., a supplier of quality products, would be able to provide up to 1,800 WVD-type drums per year for $130 per drum.

We will assume that the selling cost will remain whether it is purchased or make in house.

Make in house:

Unitary cost= 45.40 + 4.5 + 4.05 + 70.25= $124.2

Buy= $130

Gross profit (make in house)= 175 - 124.2 - 16.3= 34.5

Gross profit (buy)= 175 - 130 - 16.3= 28.7

It is more convenient to produce in house. But, the best option would be to produce 2,875 units and buy the rest of 3,375 demand.

5 0
2 years ago
XYZ Advisers is a federal covered adviser with an office in State A. It has 400 clients in State A; 6 clients in State B; and 3
Stels [109]

Answer:

None of the states.

Explanation:

Since XYZ Advisers is a federal covered adviser, it implies that it is registered with the Security and Exchange Commission (SEC) but not registered with any of the states. Therefore, only the SEC has its registration that it can revoke.

However, it is compulsory for the XYZ Advisers or any other adviser carrying out a business in any state to notify the State in which it is carrying out a business. This is to enable the relevant State to carry out an investigation and issue an order against the adviser whenever the the Administrator of a State received a complaint against a federal covered adviser. But the state still does not have the registration of the federal covered adviser it can revoke.

Therefore, none of the State Administrator(s) has the authority to revoke XYZ Adviser's registration.

8 0
2 years ago
Scenario 13-1 Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000. Kor
viktelen [127]
The answer is C.$3,000
4 0
2 years ago
Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)=  3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)=  6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)=  1/10 =0.1

b)

x                  0               1                    2

p(x)            0.3           0.6                0.1

​

​μ  X  =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ  X ² =(0−0.8)²  ⋅0.3+(1−0.8)²  ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX  =0.6

 

​

5 0
2 years ago
Maria Queen was reviewing her business activities at the end of the year (2022) and decided to prepare a Retained Earnings State
fiasKO [112]

Answer:

Retained earnings at the beginning of the year;

Equity = Common stock + Retained earnings

Retained earnings =  Equity - Common stock

Equity = Assets - Liabilities

= 700,000 - 210,000

=$490,000

Retained earnings = 490,000 - 200,000

=$290,000

........................................................Maria Queen..................................................

.....................................Statement of Retained Earnings..................................

.........................................For the year ended 2022..........................................

Opening Balance...............................................................................$290,000

Add:

Net Profit .............................................................................................$220,000

Less:

Dividends.............................................................................................($120,000)

Retained Earnings, 31 Dec 2022............................................$390,000

5 0
2 years ago
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