2 Taxes: Suppose liquor stores are required to pay a $5 tax on each case of beer sold.
a. Illustrate this policy, make sure to indicate consumer surplus, producer surplus, government revenue and deadweight loss.
b. In a separate diagram, illustrate the tax burden on consumers and the tax burden on producers due to this policy.
c. Suppose the supply of beer is relatively elastic while the demand is relatively inelastic, which side of the market will bear the larger tax incidence (i.e. pay a larger portion of the tax)?
In: Economics
In: Economics
The following income statement is for X Company's two products, A and B:
| Product A | Product B | |||
| Revenue | $87,000 | $95000 | ||
| Total variable costs | 49590 | 48,450 | ||
| Total contribution margin | $37,410 | $46,550 | ||
| Total fixed costs | ||||
| Avoidable | 13,531 | 33,138 | ||
| Unavoidable | 11,999 | 22,092 | ||
| Profit | $11,880 | $-8,680 | ||
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $26,200,
with $5,000 of additional fixed costs, what will be the effect on
firm profits?
In: Accounting
The year-end adjusted trial balance of the Corporation included the following account balances:
|
Retained earnings |
$325,000 |
|
Service revenue |
741,000 |
|
Salaries expense |
396,000 |
|
Rent expense |
27,000 |
|
Interest expense |
5,000 |
|
Dividends |
200,000 |
Prepare the closing entries.
34. $________ In preparing the closing entries for the temporary accounts, how much should Retained earnings be credited?
35. $________ In preparing the closing entries for the temporary accounts, how much should Retained earnings be debited?
36. $_________ After closing the accounts, what is the ending balance in Retained Earnings?
In: Accounting
Consider a world with two countries - USA and Foreign and a competitive market of sugar in both countries.
Foreign is more efficient in the production of sugar and in a free trade equilibrium, US would
import part of its consumption of sugar. Describe graphically such trading equilibrium of sugar.
What would be the effect on the sugar price in USA and on the welfare (measured by consumer surplus, producer surplus and tariff revenue) of US when US imposes an import tariff on sugar? Argue using a graph taking into consideration that
US is a large sugar importing country.
In: Economics
Congratulations! You are the CEO of GE. GE company culture is all about quality and process improvement!
You are leading a company meeting where you need to convince and inspire your employees that Quality Systems will be the tools to market your Brand and skyrocket your revenue.
12. What is the swiss cheese model for security? Explain to your employees the risks of quality vulnerabilities.
13. What is the Domino effect? Explain to your employees how one quality issue escalates to several company functions, and spreads to the entire supply chain.
In: Operations Management
For the four unrelated situations, A-D, calculate the unknown amounts indicated by the letters appearing in each column:
| A | B | C | D | |
|---|---|---|---|---|
| Beginning | ||||
| Assets | $45,000 | $29,000 | $45,000 | (d) |
| Liabilities | 35,600 | 22,000 | 36,000 | 9,000 |
| Ending | ||||
| Assets | 30,000 | 26,000 | 34,000 | 40,000 |
| Liabilities | 17,300 | (b) | 15,000 | 19,000 |
| During the Year | ||||
| Common Stock | 2,000 | 4,500 | (c) | 3,500 |
| Sales Revenue | (a) | 28,000 | 18,000 | 24,000 |
| Dividends | 22,000 | 18,500 | 18,000 | 23,500 |
| Expenses | 25,500 | 38,000 | 28,000 | 34,000 |
In: Accounting
Pam Jones owns a business named Sunny Renovation. Below is the account information of Sunny Renovation at 30 June 2019.
|
Cash in Bank |
$ 45,600 |
Accounts receivable |
$235,200 |
|
|
Supplies |
52,800 |
Prepaid Insurance |
16,000 |
|
|
Accounts payable |
67,400 |
Unearned revenue |
18,000 |
|
|
Service income |
372,000 |
Salary expense |
222,000 |
|
|
Pam Jones, Capital |
? |
Equipment |
130,000 |
Required:
Using the accounting equation, prepare the balance sheet for Sunny
Renovation at 30 June 2019 (please use the narrative/vertical
format).
In: Accounting
Suppose the demand equation facing a firm is Q = 1000 – 5P, MR = 200 – 0.4 Q, and MC = $20.
In: Economics
Suppose the demand equation facing a firm is Q = 1000 – 5P, MR = 200 – 0.4 Q, and MC = $20.
In: Economics