Answer:
Gross Margin 1,465,600
Explanation:
gross margin: sales - COGS
sales 6,400 units at 684 = 4,377,600
cost of goods sold 455 = (2,912,000)
Gross Margin 1,465,600
<u>The selling and administrative cost are cost of the period,</u> are not capitalized through inventory.
Answer:
The answer is: the equilibrium quantity is larger than the socially optimal quantity.
Explanation:
In order for the equilibrium quantity and the socially optimal quantity to be equal, the government subsidy should have been equal to the positive externality created by the flu shots ($8). Since the government subsidy is larger, $11, then the equilibrium quantity will be higher (more flu shots supplied because of high subsidy).
Answer: The supply of vegetables has shifted to the left along an inelastic demand curve
Explanation: The quantity of vegetables sold has been reduced by 20 percent, which simply means the aggregate market supply curve has experienced a drop/decrease and that is usually indicated by a complete shift of the supply curve to the left.
Furthermore, we can determine easily if the demand is elastic or inelastic, since the question has stated the percentage change in quantity demanded as 20% and the percentage change in price as 30%.
The coefficient of elasticity is calculated as
E = %change in quantity demanded/%change in price
E = 20/30
E =0.66
Since the coefficient of elasticity is less than 1, then it means demand is inelastic.
Answer:
a. What is the value today of Steinberg's debt and equity?
b. What is the value today of Dietrich's debt and equity?
c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?
- A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).
Explanation:
economic expansion 80% chance, EBIT $3.5 million
economic recession 20% chance, EBIT $1.9 million
expected EBIT = (3.5 x 0.8) + (1.9 x 0.2) = $2.8 million + $0.38 million = $3.18 million
Steinberg's debt obligations $980,000 at the end of next year
Dietrich's debt obligations $2,000,000 at the end of next year
total company value = $3.18 million / (1 + 10%) = $2,890,909
Answer:
$83000
Explanation:
Given: Stadium is fined for $186000
Other parking expense is $163000
Revenue generated by stadium in parking= $432000.
Now, calculating profit:
Profit= 
Profit= 
∴ Profit= $83000
∴ Total profit made for parking that day is $83000.
