It is a hot day, and Bert is thirsty. Here is the value he places on each bottle of water: Value of first bottle $7, Value of second bottle $5, Value of third bottle $3, Value of fourth bottle $1

a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water.
b. If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph.
c. If the price falls to $2, how does quantity demanded change? How does Bert’s consumer surplus change? Show these changes in your graph.

Answers

Answer 1

Answer:

a. Please check the attached image for the diagram

b. He would buy 2 bottles

$4

Please check the attached image for the diagram

c. he demands 3 bottles. his demand increases by 1 bottle

his consumer surplus changes to $3. It reduces by $1

Please check the attached image for the diagram

Explanation:

The demand schedule is a table that shows the relationship between price and quantity demanded of a consumer. It can be seen that the higher the price, the lower the quantity demanded. This is in line with the law of demand.

The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

the price of the good is $4 and when price is $7, he would purchase a bottle and when it is $5, he would buy a second bottle.

Thus, he would buy 2 bottles when the price is $4

It Is A Hot Day, And Bert Is Thirsty. Here Is The Value He Places On Each Bottle Of Water: Value Of First
It Is A Hot Day, And Bert Is Thirsty. Here Is The Value He Places On Each Bottle Of Water: Value Of First
It Is A Hot Day, And Bert Is Thirsty. Here Is The Value He Places On Each Bottle Of Water: Value Of First
It Is A Hot Day, And Bert Is Thirsty. Here Is The Value He Places On Each Bottle Of Water: Value Of First

Related Questions

A single commercial bank must meet a 25 percent reserve requirement. If the bank has no excess reserves initially and $5,000 of cash is deposited in the bank, it can increase its loans by a maximum of Group of answer choices $5,000. $1,250. $120,000. $3,750.

Answers

Answer:

$3,750

Explanation:

Calculation to determine what it can increase its loans by

Using this formula

Loan increase=Excess reserves-(Reserve requirement percentage* Excess reserves)

Let plug in the formula

Loan increase=$5000-($25%*$5000)

Loan increase=$5,000-$1,250

Loan increase=3,750

Therefore it can increase its loans by a maximum of $3,750

The language of price controls
Suppose that, in a competitive market without government regulations, the equilibrium price of milk is $2.50 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or non-binding.
Statement Price Control Binding or Not
The government prohibits grocery stores from selling
milk for more than $2.30 per gallon.
The government has instituted a legal minimum price
of $2.30 per gallon for milk.
Due to new regulations, grocery stores that would like
to pay better wages in order to hire more workers are
prohibited from doing so.

Answers

Answer:

Price ceiling binding

price floor non binding

price ceiling binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

The minimum price is $2.30 which is less than the equilibrium price of $2.50. Thus, its a non binding price floor

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Effects of a binding price ceiling

1. It leads to shortages

2. it leads to the development of black markets

3. it prevents producers from raising price beyond a certain price

4. It lowers the price consumers pay for a product. This increases consumer surplus

the maximum price is 2.30 which is less than the equilibrium price of $2.50. Thus, its a binding price ceiling

Nut and Bolt guy Inc, sells nuts, bolts, fasteners and other related equipment. The CFO projects that net FCF for the next three years will be $11,000, $12,500 and $16,000, respectively. After that, the cash flows are expected to increase by 4.5 percent annually. What is the value of the firm if the WACC is 12.2%?

Answers

Answer:

$184791

Explanation:

The calculation of the value of the firm is given below:

Year         Future Cash Flow      PVF at 12.2%      PV of Cash Flow

1                 11000                               0.891                  9801

2               12500                               0.794                  9925

3               16000                                0.708                11328

Total                                                                              31054

Present Value of Terminal Value

= [16000 × (1 + 0.045) ÷ 0.122 - 0.045] × 0.708

= [16720 ÷ 0.077] × 0.708

= 153737

Now

value of Firm = 31054 + 153737

= $184791

PandemicsPlus just paid a dividend of $1.00 per share and they consistently grown dividends at 4% annually. Investors require a return of 12% on the firm's equity. What is the current value of the stock?

Answers

Answer:

$13

Explanation:

The current value of the stock can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

(1 x 1.04) / (0.12 - 0.04) = 13

Purple Cab Company had 70,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 40,000 shares of common stock. The company had outstanding fully vested incentive stock options for 7,000 shares exercisable at $12 that had not been exercised by its executives. The average market price of common stock was $14. The company reported net income in the amount of $289,915 for 2021. What is the basic earnings per share (rounded)

Answers

Answer:

Purple Cab Company

The basic earnings per share is:

= $2.64 per share.

Explanation:

a) Data and Calculations:

January 1, 2021, Outstanding common stock shares = 70,000

April 1, 2021, Issue of new common stock shares = 40,000

December, 31, 2021, Outstanding common stock shares = 110,000

Outstanding fully vested incentive stock options = 7,000

Exercise price of options = $12

Common stock market price = $14

Reported net income = $289,915

The basic earnings per share = $ (Net income/Outstanding common stock)

= $289,915/110,000

= $2.64 per share

b) The basic earnings per share does not include the fully vested incentive stock options.  It is only when calculating the diluted earnings per share that the stock options will be included.

Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge of $12. If Joshua repaid the loan in 12 equal monthly payments, what is the APR? (Enter your answer as a percent rounded to 1 decimal place.)
APR %

Answers

Answer: 10.81%

Explanation:

The annual percentage rate is the percentage cost of credit on yearly basis.

APR will be calculated

= [(2 x n x I) /( P x ( N + 1)]

where,

n = number of months = 12

I = Finance cost = Interest + service charge = $70 + $12 = $82

P = Borrowed amount = $1,400

N= Loan period = 12

We'll then slot the values into the annual percentage rate (APR) formula and this will be:

= ( 2 x n x I) /( P x ( N + 1))

= ( 2 x 12 x 82) /( 1400 x ( 12 + 1))

= 0.1081

=10.81 %

[ Shareholders - Employees - Managers - Officers - Board of Directors ]
(a) Who manages the big picture and strategies for corporations, and who manages the day to day affairs of a corporation?
(b) How are each put in their position?

Answers

A)board of directors
B)you can appoint new company shareholders at any point after incorporation.

Zachary Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials $ 6,400 Unit-level labor 6,400 Unit-level overhead 3,800 Product-level costs* 8,400 Allocated facility-level costs 28,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Zachary for $2.70 each. Required Calculate the total relevant cost. Should Zachary continue to make the containers

Answers

Answer:

Zachary Electronics

Zachary should continue to make the containers.  It is cheaper to make than to buy from Russo Container Company.

Explanation:

a) Data and Calculations:

Production units = 9,100 containers

Unit-level materials                $ 6,400

Unit-level labor                          6,400

Unit-level overhead                  3,800

Total unit-level costs            $16,600

Product-level costs*                 8,400

Allocated facility-level costs  28,000

Relevant or avoidable costs:

Unit-level materials                $ 6,400

Unit-level labor                          6,400

Unit-level overhead                  3,800

Total unit-level costs            $16,600

Product-level costs*                 2,800 ($8,400 * 1/3)

Total relevant costs =          $19,400 (to make)

Relevant cost to buy:

Offer from Russo Container company = $2.70 per container

Total cost from outside supplier = $24,500 ($2.70 * 9,100)

An owner lists her home at a 7% commission rate and wants to net $45,000 after paying the mortgage balance of $68,000 and the broker's commission. To the nearest dollar, what should the selling price be to net her $45,000

Answers

Answer: $121505

Explanation:

Let the selling price be represented by x.

Then the broker's commission will be:

= 7% of x = 0.07 × x = 0.07x

Based on the information given,

Selling price - (Mortgage balance + Broker's commission) = $45000

Therefore, x - ($68000 + 0.07x) = $45000

x - $68000 - 0.07x = $45000

x - 0.07x = $45000 + $68000

0.93x = $113000

x = $113000/0.93

x = $121505

Therefore, the selling price is $121505

Estimated inventory (units), March 1 17,000 Desired inventory (units), March 31 19,700 Expected sales volume (units): Area M 6,500 Area L 8,900 Area O 7,800 Unit sales price $15 The number of units expected to be manufactured in March is a.23,200 b.59,900 c.25,900 d.42,900

Answers

Answer:

c.25,900

Explanation:

The computation of the no of units expected to be manufactured is given below:

No of units manufactured is

= No. of units sold + Closing units - Opening units

= (6,500 + 8,900 + 7,800) + 19,700 - 17,000

= 25,900

Hence, the no of units expected to be manufactured is 25,900

Therefore the option c is correct

On April 1, a company established a $150 petty cash fund. On April 15, the petty cash fund contains $5 in cash and the following paid petty cash receipts: Petty Cash Receipts Amount Advertising Expense $29.00 Gasoline Expense38.00 Miscellaneous Expense 50.00 Office Supplies 25.00 Prepare the general journal entries to (1) establish the petty cash fund, to (2) reimburse the fund, and to (3) increase its amount to $200 on April 15.

Answers

1. General journal entries to establish the petty cash fund

   Date  Account titles               Debit     Credit

 April 1  Petty cash                       $150

                  Cash                                           $150

2. General journal entries to reimburse the fund

   Date   Account titles                Debit     Credit

April 15 Advertising Expense      $29.00

             Gasoline Expense           $38.00

             Miscellaneous Expense  $50.00

             Office Supplies                $25.00

             Cash over and short        $3

                    Cash ($150-$5)                          $145

3. General journal entries to increase its amount to $200 on April 15.

   Date  Account title    s               Debit     Credit

April 15  Petty cash ($200-$150)    $50

                  Cash                                              $50

See related question here https://brainly.com/question/24003416

KNK bank receives a deposit of GHS 1,000 and observes a cash ratio of 10%. Assuming there is no cash drain(cashless economy) and all rxcess reserves are pushed into loans. a. what is the maximum amount of money that can be pushed into loans. b. what is the total increase in money supply with the bank?​

Answers

The maximum amount of money which can be created from the deposit will be GHS 1,000 and the total increase in the money supply with the bank will be GHS 1,000 too.

Money supply has to do with the total amount of money that's in circulation in a particular period of time in an economy.

A) Based on the information given, the maximum amount of money which can be created from the deposit will be GHS 1,000.

B. The total increase in the money supply with the bank will be GHS 1,000. The reason for this is because there were no additional information that was given.

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https://brainly.com/question/3625390

On January 1, 2019, Stronger Industries issued $480,000 of 9%, five-year bonds that pay interest semiannually on June 30 and December 31. They are issued at $499,483 and their market rate is 8% at the issue date. After recording the entry for the issuance of the bonds, Bonds Payable had a balance of $480,000 and Premium on Bonds Payable had a balance of $19,483. Stroger uses the effective interest bond amortization method. The first semiannual interest payment was made on June 30, 2019. Complete the necessary journal entry for the interest payment date of June 30, 2019 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answers

Answer:

Journal Entry to record the first interest payment

June 30, 2019

Dr. Interst Expense $19,979.32

Dr. Premium on Bond $1,620.68

Cr. Cash $21,600

Explanation:

First, we need to calculate the premium on bond amortization as follow

Premium on bond amortization = Coupon Payment - Interest Expense

Premium on bond amortization = ( $480,000 x 8% x 6/12 ) - ( $499,483  x 8% x 6/12 )

Premium on bond amortization = $21,600 - $19,979.32

Premium on bond amortization = $1,620.68

What is the answer to this question? B or C?​

Answers

Answer:B

Explanation: everything had a code of ethics.

TB MC Qu. 08-156 Fortune Drilling Company acquires... Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined

Answers

Answer:

Fortune Drilling Company

Journal Entry:

Debit Depletion Expense $1,350,000

Credit Accumulated Depletion $1,350,000

To record the first year's expense.

Explanation:

a) Data and Calculations:

Acquisition cost of mineral deposit = $5,900,000

Additional costs incurred = $600,000

Total costs of mine = $6,500,000

Estimated mineral deposit = 2,000,000 tons

Estimated years of extraction = 5 years

First year's extraction quantity = 418,000

Expenses for the first year = 418,000/2,000,000 * $6,500,000

= $1,350,000

Analysis:

Depletion Expense $1,350,000 Accumulated Depletion $1,350,000

If demand is not uniform and constant, then stockout risks can be controlled by: increasing the EOQ. spreading annual demand over more frequent, but smaller, orders. raising the selling price to reduce demand. adding safety stock. reducing the reorder point.

Answers

Answer: Adding safety stock

Explanation:

A stockout is when the orders of the customer for a particular product is more than the amount of inventory that is kept on hand and this leads to lost sales, and a negative impact on the long-term relationship with the customer.

Since the demand is not uniform and constant, then stockout risks can be controlled by adding safety stock. The safety stock is asimply the additional quantity of an item which is held in the inventory in order to help to reduce stockout risk.

Consider the last purchase of two goods by a consumer. A bag of chips costs $1.75 and the marginal utility is 20. A cup of chili costs $2.50. What must the marginal utility of chili be for the consumer to maximize total utility

Answers

Answer:

The marginal utility of chili must be 28.57 for the consumer to maximize total utility.

Explanation:

The marginal utility of chili at which the consumer maximizes total utility can be calculated as follows:

Let:

CCHIP = Cost of a bag of chips = $1.75

MUCHIP = Marginal utility of a bag of chips = 20

CCHILI = Cost of a cup of chili = $2.50

MUCHILI = Marginal utility of a cup of Chili = ?

The condition for the utility maximization of the consumer is as follows:

MUCHIP / CCHIP = MUCHILI / CCHILI ……………………………. (1)

Substituting all the relevant values into equation (1) and solve for MUCHILI, we have:

20 / 1.75 = MUCHILI / 2.50

(20 / 1.75) * 2.50 = MUCHILI

MUCHILI = 28.57

Therefore, the marginal utility of chili must be 28.57 for the consumer to maximize total utility.

According to Bradly, Pratt, Byrd, and Simmons, enterprise architecture strategically positions an organization to leverage its current IT capabilities and also provides a dynamic roadmap to the future.
a. true
b. false

Answers

The answer is A, "TRUE"

Ship Co. produces storage crates that require 29.0 meters of material at $0.50 per meter and 0.35 direct labor hours at $13.00 per hour. Overhead is applied at the rate of $14 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card

Answers

Answer:

Total standard cost per unit= $23.95

Explanation:

First, we need to allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*0.35= $4.9

Now, the total direct material and total direct labor:

Direct material= 29*0.5= $14.5

Direct labor= 0.35*13= $4.55

Finally, the total cost per unit:

Total standard cost per unit= 4.9 + 14.5 + 4.55

Total standard cost per unit= $23.95

Vortex Company operates a retail store with two departments. Information about those departments follows:

Department A Department B
Sales $832,000 $448,000
Cost of goods sold 410,000 291,200
Direct expenses:
Salaries 117,000 86,000
Insurance 13,500 10,900
Utilities 21,000 25,500
Depreciation 18,000 13,500
Maintenance 6,400 5,200

The company also incurred the following indirect costs.

Salaries $29,000
Insurance 6,600
Depreciation 14,800
Office expenses 40,000

Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows.

Department Square footage Number of employees
A 29,400 66
B 12,600 44

Required:
a. Determine the departmental contribution to overhead and the departmental net income for department A and Department B.
b. Should Department B be eliminated?

Answers

Answer:

Vortex Company

                                Department A       Department B

a. Contribution margin   $246,100                 $15,700

Net income                     $188,270                ($16,870)

b. Department B should not be eliminated unless the indirect costs allocated to it can be eliminated as well.

Explanation:

a) Data and Calculations:

                                Department A       Department B

Sales                            $832,000              $448,000

Cost of goods sold        410,000                 291,200

Gross profit                 $422,000              $156,800

Direct expenses:

Salaries                           117,000                  86,000

Insurance                         13,500                   10,900

Utilities                             21,000                  25,500

Depreciation                    18,000                   13,500

Maintenance                     6,400                    5,200

Total direct expenses $175,900                $141,100

Contribution margin   $246,100                 $15,700

Total indirect expenses  57,830                 32,570

Net income                 $188,270               ($16,870)

Department   Square footage   Number of employees

A                             29,400                         66

B                              12,600                         44

Total                       42,000                        110

Indirect Costs:       Costs            Rates            Department A   Department B

Salaries               $29,000   $0.02266                $18,850            $10,150 ($448/$1,280)

Insurance                6,600     $0.15714                    4,620                1,980

Depreciation          14,800   $0.35238                  10,360                4,440

Office expenses  40,000      $363.64                 24,000              16,000

Total costs         $90,400                                   $57,830           $32,570

Bangladesh has been the 7 th largest mango exporter in the world and exported 1-billion-dollar worth of vegetables across the world. Within 1000 words, discuss i) How can we internationalize our productions? ii) How can we localize our productions? Discuss some research oriented examples.

Answers

Answer:

Private companies added 330,000 jobs in July, according to ADP, far short of the 653,000 estimate

Explanation:

Private companies added 330,000 jobs in July, according to ADP, far short of the 653,000 estimate:The 330,000 new positions is a sharp deceleration from the 680,000 added in June and the lowest total since February. Leisure and hospitality led the gains with 139,000 during a month in which goods-producing industries contributed just 12,000 jobs. #accelerationism

Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2020 profit of $300,000, assuming a single sole proprietor with no other earned income.

Answers

Answer: $25,802.70

Explanation:

Social security

Social security rates in 2020 for a single sole proprietor is 12.40% on the first $137,700:

= 12.40% * 300,000

= $17,074.80

Medicare Tax

First you need to remove a deduction of 7.65% from the income:

= 300,000 * (1 - 7.65%)

= $277,050

Medicare tax is 2.90% of this adjusted amount in addition to 0.9% for any amount above $200,000:

= (2.90% * 277,050) + (0.9% * (277,050 - 200,000))

= 8,034.45 + 693.45

= $8,727.90

Total Social security and Medicare:

= 17,074.80 + 8,727.9

= $25,802.70

Sometimes it is necessary to invest a certain amount of money at a fixed interest rate for a fixed number of year so that a financial goal is met. The inital amount invested in called the present value.

a. True
b. False

Answers

Answer: True

Explanation:  financial goals is an important step toward becoming financially secure.

To meet projected annual sales, Bluegill Manufacturers, Inc. needs to produce 75,000 machines for the year. The estimated January 1 inventory is 7,000 units, and the desired December 31 inventory is 12,000 units. What are projected sales units for the year? fill in the blank 1 units

Answers

Answer: 70,000 units

Explanation:

You can use the formula for the ending inventory to get this:

Ending inventory = Opening inventory + Production for the year - Projected sales

12,000 = 7,000 + 75,000 - Projected sales

12,000 + Projected sales = 82,000

Projected sales = 82,000 - 12,000

Projected sales = 70,000 units

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ________ structure.

Answers

It leads to Divisional Structure.

XYZ expects to sell 28,000 pools in 2019. It budgets the beginning inventory of Direct Materials, Work-in-process, and Finished goods to be 26,000; 0; 1,300 units; AND ending inventory to be 26,000; 0; 2,800 units. How many pools need to be produced

Answers

Answer:

the  no of pools need to be produced is 29,500 units

Explanation:

The computation of the no of pools need to be produced is given below:

= Ending finished goods inventory units + number of units sold - beginning finished goods inventory units

= 2800 + 28000 - 1300

= 29500 units.

Hence, the  no of pools need to be produced is 29,500 units

Your team is working hard to develop a strategy to serve a new client. Which of the following actions is most important to ensuring an effective strategy is chosen?

a. Suggest that each proposed strategy be evaluated against a set of key objectives.
b. Invite the client into a meeting to shape the strategy.
c. Conduct a benchmarking survey of similar clients to determine best strategy.
d. Ask the team member with the most industry-related experience to lead the process.

Answers

Answer:

b. Invite the client into a meeting to shape the strategy.

Explanation:

It is very important when we invited the client for meeting so that we are able to share the strategy as the open and loose could be discussed in a proper way and in easy way also the suggestions are also welcome. In addition to this, the strategy should be taken place as per the preferences, requirements and choices of the clients

Therefore the option b is correct

Baden Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

a. Income would decrease by $8,000.
b. Income would increase by $8,000.
c. Income would increase by $140,000.
d. Income would increase by $40,000.

Answers

Answer:

d. Income would increase by $40,000

Explanation:

Calculation to determine what the acceptance of the special order would affect net the income

Net income=(Additional unit price*Additional units)-(Variable cost *Additional units

Let plug in the formula

Net income = ($140× 1,000)-($100×1,000)

Net income= $140,000-$100,000

Net income=$40,000 Increase

Therefore If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows Income would increase by $40,000

Mitch and Jennifer have adjusted gross income of $125,000 and they have not planned for their children's education. Their children are ages 17 and 18 and the parents anticipate paying $20,000 per year, per children for education expenses. Which of the following is the most appropriate recommendation to pay for the children's education?
A) 529 Savings Plan
B) PLUS Loan
C) Pell Grant
D) Coverdell ESA

Answers

Answer: B) PLUS Loan

Explanation:

Seeing as they did not plan ahead and the children are about to start school, the best option they have is a loan. In light of that, they should go for a Parent Loan for Undergraduate Students (PLUS) loan.

A PLUS loan is provided by the Federal government to parents to help them pay for the tuition fees of their children at undergraduate level. It has a lower interest rate but is only given to people whose credit history are not to bad.

You feel that you will need $2.2 million in your retirement account and when you reach that amount, you plan to retire. You feel you can earn an APR of 10.2 percent compounded monthly and plan to save $305 per month until you reach your goal. How many years will it be until you reach your goal and retire

Answers

Answer: 40.7 years

Explanation:

You can use Excel to sold for this using the NPER function.

Rate = 10.2% / 12 months = 0.85%

Payment is $305 per month

Present value is $0

Future value is $2,200,000

Number of periods = 488.1979353

In years this is:

= 488.1979353 / 12

= 40.7 years

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