In: Economics
In the market for Iphones the equilibrium price for Iphones is $400, and the quantity of Iphones sold is 20,000.
(f) The Processor used to make Iphones becomes considerably cheaper and innovation raises the incomes of the population. Show the relevant shifts in your diagram
(g) Suppose the government implements a price ceiling of $300. What happens to the market?
(h) Suppose the government implements a price ceiling of $500. What happens to the market?
(i) Suppose the government implements a price floor of $300. What happens to the market?
(j) Suppose the government implements a price floor of $500. What happens to the market
In: Economics
Answer all the following questions with an essay of not more than 300 words each:
A-What is an aggregate supply curve? Explain the circumstances under which the aggregate supply curve is horizontal, upward sloping, and a vertical straight line.
B-
Explain the short-run and long-run effects of the following events on output and price level with the AD-AS diagram:
a.
tax cuts
b.
money supply increases
c.
an increase in the price of key imported inputs
d.
a natural disaster that destroys a significant portion of production capacity
e.
a major technological innovation
In: Economics
|
Problem 2-13 (algorithmic) |
Question Help |
Barcelona Machine Tools. Oriol D'ez Miguel S.R.L., a manufacturer of heavy duty machine tools near Barcelona, ships an order to a buyer in Jordan. The purchase price is
€422,000. Jordan imposes a 14% import duty on all products purchased from the European Union. The Jordanian importer then re-exports the product to a Saudi Arabian importer, but only after imposing its own resale fee of 28%.
Given the following spot exchange rates on April 11, 2010, what is the total cost to the Saudi Arabian importer in Saudi Arabian riyal, and what is the U.S. dollar equivalent of that price? (Click on the
icon to import the table into a spreadsheet.)
|
Currency Crossrate |
Spot Rate |
|
| Jordanian dinar (JD) per euro
(€) |
0.963 |
|
|
Jordanian dinar (JD) per U.S. dollar ($) |
0.705 |
|
|
Saudi Arabian riyal (SRI) per U.S. dollar ($) |
3.747 |
The spot rate, Saudi Arabian riyal per Jordanian dinar is SRI
__/JD.
(Round to five decimal places.)
In: Finance
Presented is the 2009 contribution income statement of Colgate Products.
| COLGATE PRODUCTS Contribution Income Statement For Year Ended December 31, 2009 |
||
|---|---|---|
| Sales (12,000 units) | $1,440,000 | |
| Less variable costs | ||
| Cost of goods sold | $480,000 | |
| Selling and administrative | 132,000 | (612,000) |
| Contribution margin | 828,000 | |
| Less fixed costs | ||
| Manufacturing overhead | 530,000 | |
| Selling and administrative | 200,000 | (730,000) |
| Net income | $98,000 | |
Next year, Colgate expects an increase in variable manufacturing
costs of $6 per unit and in fixed manufacturing costs of
$48,000.
(a) If sales for 2010 remain at 12,000 units, what price should
Colgate charge to obtain the same profit as last year?
$Answer
(b) Management believes that sales can be increased to 16,000 units
if the selling price is lowered to $105. What would be the excepted
profit (or loss) as a result of this action? Use a negative sign
with your answer, if appropriate.
Answer
(c) After considering the expected increases in costs, what sales
volume is needed to earn a pretax profit of $98,000 with a unit
selling price of $105?
Answer
units
In: Accounting
Product Pricing: Single Product
Presented is the 2009 contribution income statement of Colgate
Products.
| COLGATE PRODUCTS Contribution Income Statement For Year Ended December 31, 2009 |
||
|---|---|---|
| Sales (6,000 units) | $720,000 | |
| Less variable costs | ||
| Cost of goods sold | $240,000 | |
| Selling and administrative | 66,000 | (306,000) |
| Contribution margin | 414,000 | |
| Less fixed costs | ||
| Manufacturing overhead | 290,000 | |
| Selling and administrative | 90,000 | (380,000) |
| Net income | $34,000 | |
During the coming year, Colgate expects an increase in variable
manufacturing costs of $6 per unit and in fixed manufacturing costs
of $24,000.
(a) If sales for 2010 remain at 6,000 units, what price should
Colgate charge to obtain the same profit as last year?
____
(b) Management believes that sales can be increased to 8,000 units
if the selling price is lowered to $105. What would be the excepted
profit (or loss) as a result of this action? Use a negative sign
with your answer, if appropriate.
____
(c) After considering the expected increases in costs, what sales
volume is needed to earn a profit of $34,000 with a unit selling
price of $105?
____ units
In: Accounting
Use the following information for the next 5 questions:
On January 1, 2008, KA Company purchased equipment for $105,000. The estimated useful life of the equipment is 10 years, during which time it will be produce 100,000 units. Estimated residual value is $5,000. KA’s fiscal year is January 1 to December 31.
If KA Company uses the straight-line methodof depreciation, the net book valueof the asset at the end of the secondyear will be:
If KA Company uses the units methodof depreciation and produced 30,000 units in the first year, the depreciation expensefor the firstyear will be:
If KA Company uses the double-declining-balance methodof depreciation, the balance in accumulated depreciationat the end of the second year will be:
4.If he company should recognize a:
a. $70,000 loss on the sale
b. $35,000 gain on the sale
c. $10,000 gain on the sale
d. $10,000 loss on the sale
e.None of the above.
Assume KA Company purchased the equipment on July 1, 2008. What is the net book valueof the equipment on December 31, 2010, after adjusting entries, if KA Company uses the straight-line methodof depreciation?
In: Accounting
Presented is the 2009 contribution income statement of Colgate Products.
COLGATE PRODUCTS Contribution Income Statement For Year Ended December 31, 2009
Sales (18,000 units) $2,160,000
Less variable costs Cost of goods sold $720,000 Selling and administrative 198,000 (918,000)
Contribution margin 1,242,000
Less fixed costs Manufacturing overhead 750,000 Selling and administrative 320,000 (1,070,000)
Net income $172,000
During the coming year, Colgate expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $108,000.
(a) If sales for 2010 remain at 18,000 units, what price should Colgate charge to obtain the same profit as last year?
(b) Management believes that sales can be increased to 24,000 units if the selling price is lowered to $109. What would be the excepted profit (or loss) as a result of this action? Use a negative sign with your answer, if appropriate.
(c) After considering the expected increases in costs, what sales volume is needed to earn a profit of $172,000 with a unit selling price of $109? Answer units
In: Accounting
Presented is the 2009 contribution income statement of Colgate Products. COLGATE PRODUCTS Contribution Income Statement For Year Ended December 31, 2009 Sales (18,000 units) $2,160,000 Less variable costs Cost of goods sold $720,000 Selling and administrative 198,000 (918,000) Contribution margin 1,242,000 Less fixed costs Manufacturing overhead 750,000 Selling and administrative 320,000 (1,070,000) Net income $172,000 During the coming year, Colgate expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $108,000. (a) If sales for 2010 remain at 18,000 units, what price should Colgate charge to obtain the same profit as last year? $ Answer (b) Management believes that sales can be increased to 24,000 units if the selling price is lowered to $109. What would be the excepted profit (or loss) as a result of this action? Use a negative sign with your answer, if appropriate. Answer (c) After considering the expected increases in costs, what sales volume is needed to earn a profit of $172,000 with a unit selling price of $109? Answer units
In: Accounting
After years of rapid growth, illegal immigration into the United States has declined, perhaps owing to the recession and increased border enforcement by the United States (Los Angeles Times, September 1, 2010). While its share has declined, California still accounts for 35% of the nation’s estimated 11.3 million undocumented immigrants.
a. In a sample of 60 illegal immigrants, what
is the probability that more than 21% live in California?
(Round “z” value to 2 decimal places, and final
answer to 4 decimal places.)
b. In a sample of 120 illegal immigrants, what is
the probability that more than 21% live in California?
(Round “z” value to 2 decimal places, and final
answer to 4 decimal places.)
c. Comment on the reason for the difference
between the computed probabilities in parts a and b.
As the sample number increases, the probability of more than 21% also increases, due to the lower z value and decreased standard error.
As the sample number increases, the probability of more than 21% also increases, due to the lower z value and increased standard error.
In: Statistics and Probability