To achieve the social optimum,the government could set a tax equal to ________ per unit sold. A) $6
B) $4
C) $2
D) $3
E) $5

Answers

Answer 1

Answer:

Answer:

A) $6

Explanation:

The equilibrium price arises when the marginal cost of private i.e. demand is $12 and when the social production cost is to be considered then the equilibrium price is $18

So, to accomplish the social optimum, the government should set a tax of

= $18 - $12

= $6

This shifted the private marginal cost to the left and there is yield to the social optimum

Hence, the correct option is A. $6

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Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fridge with compartments for each employee, a sink, microwave, toaster oven, tables chairs, a rock wall, snacks for everyone, and maybe some other bells and whistles. Your managers think that by updating this area employees will not take as long of lunches. They understand this purchase will be at a cost. You are tasked with considering two different options and presenting them to management. Use a 5% interest rate. Walmart Kit Target First Cost $40,000 $65,000Annual Maintenance Cost $10,000 $12,000Salvage Value $12,000 $25,000Life Years 3 6 a. Using NPW (Net Present Worth Analysis) analysis determine which kitchen kit you should chooseb. Using EUAW (Equivalent Uniform Annual Worth) analysis determine which kitchen kit you should choose. C. You really want the Target kit because it looks nicer and has more bells and whistles. You are willing to keep these products around for longer and therefore extend the lives of these products. Perform the analysis to show that the Target option is the better choice. d. Now from your analysis in part b think about how ethical presenting this information to management would be. Write 2-3 sentences about how you would present this information in a way that showed your bias. You will be graded on your ability to consider two options in an ethical comparison and how you perceive your bias.

AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year consisted of 16,000 units of the company’s one product. These units cost $10 each. During the year, 66,000 units were purchased at a cost of $13 each and 67,000 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 8,000 units at $13.a. What would be the effect of this purchase on income before income taxes?
b. What would be the effect of this purchase on income before income taxes using FIFO method?

Answers

Answer:

1. Net income decreases by $3,000

2. The amount of net income would be remains the same.

Explanation:

1. Under LIFO method

(i) Before 8,000 units purchased:

sales = 67,000 units

Cost of goods sold = Quantity × Price

= (66,000 × $13) + (1,000 × $10)

= $858,000 + $10,000

= $868,000

(ii) If 8,000 units purchased at $13 each then,

Cost of goods sold = Quantity × Price

= 67,000 × $13

= $871,000

As the cost of goods increases as a result there will be decrease in the net income before tax under LIFO method.

The amount of net income would be decreased by:

= $871,000 - $868,000

= $3,000

2. Under FIFO method:

(i) Before 8,000 units purchased:

sales = 67,000 units

Cost of goods sold = Quantity × Price

= (16,000 × $10) + (51,000 × $13)

= $160,000 + $663,000

= $823,000

(ii) If 8,000 units purchased at $13 each then,

Cost of goods sold = Quantity × Price

= (16,000 × $10) + (51,000 × $13)

= $160,000 + $663,000

= $823,000

As there will be no change in the cost of goods sold, so, there will be no change in the net income before tax under FIFO method.

The amount of net income would be remains the same.

R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. wishes to minimize his total annual inventory costs, he must evaluate the total cost for two possible order quantities. What are these two possible quantities?a. 300
b. 306
c. 500
d. 200
e. None of the above

Answers

Answer:

a. 300

d. 200

Explanation:

EOQ = $√((2 * Annual demand * ordering cost) / holding cost ) \n$

2 * 7500 * 30 / 0.5

EOQ = 948 units

When price is $48 per unit

EOQ = 968 units

Total cost = Holding cost + ordering cost + purchase cost

When the order is for 500 price is $48

Total cost = $2,400 + $30 + $24,000 = $26,430

When the order is for 300 price is $50

Total cost = $1,500 + $30 + $15,000 = $16,530

When the order is for 306 price is $50

Total cost = $1,530 + $30 + $15,300 = $16,860

When the order is for 200 price is $50

Total cost = $1,000 + $30 + $10,000 = $11,030

The best two possible order quantities are 200 and 300 which results in minimum total cost.

A useful economic model a. deals only with possibilities that actually occurred. b. will avoid conclusions that have public policy implications, because economists do not make value judgments. c. makes only realistic assumptions. d. may make some unrealistic assumptions in order to simplify a complex reality. g

Answers

Answer:

d. may make some unrealistic assumptions in order to simplify a complex reality

Explanation:

In economics, a model is a conceptual structure that represents economic procedures through a number of variables and a series of rational or quantitative interactions. The economic model is a simpler framework intended to demonstrate complex structures that is often mathematical.

Can someone plz help me really quick? I’m struggling. I can give brainliest points.

Answers

Pretty sure its the third one

On January 1, 2011, Deuce Inc. acquired 15% of Wiz Co.'s outstanding common stock for $62,400 and categorized the investment as an available-for-sale security. Wiz earned net income of $96,000 in 2011 and paid dividends of $36,000. On January 1, 2012, Deuce bought an additional 10% of Wiz for $54,000. This second purchase gave Deuce the ability to significantly influence the decision making of Wiz. During 2012, Wiz earned $120,000 and paid $48,000 in dividends. As of December 31, 2012, Wiz reported a net book value of $468,000. For both purchases, Deuce concluded that Wiz Co.'s book values approximated fair values and attributed any excess cost to goodwill. What amount of equity income should Deuce have reported for 2012?

Answers

Answer:

$30,000

Explanation:

Calculation for the amount of equity income to reported

Using this formula

Equity income=[(Amount earned in 2012×(Outstanding common stock percentage +Additional percentage of Wiz)]

Let plug in the formula

Equity income = [($120,000 ×(15%+ 10%)]

Equity income = ($120,000 ×25%)

Equity income= $30,000

Therefore the amount of equity income to reported for 2012 will be $30,000

Arden Company reported the following costs and expenses for the most recent month:Direct materials $ 80,000
Direct labor $ 42,000
Manufacturing overhead $ 19,000
Selling expenses $ 22,000
Administrative expenses $ 35,000

1) What is the total amount of product costs?

2) What is the total amount of period costs?

3) What is the total amount of conversion costs?

4) What is the total amount of prime costs?

Answers

Answer:
1) $141,000
2) $198,000
3) $ 61,000
4) $122,000

Explanation:
1) we sum ($80,000+$42,000+$19,000)= $141,00,0 according to the cost’s theory

2) we sum all amounts (80,000+42,000+19,000+22,000+35,00)= 198,000 we sum all amounts because those are the cost that the company incurred In the period.

3) Conversion cost we obtain summing direct labor+ manufacturing overhead ( 42,000+19,000)= $61,000

4) Prime costs we obtain summing direct materiales+ direct labor ( 42,000+80,000)= $122,000

Final answer:

The total product cost is $141,000, total period cost is $57,000, total conversion cost is $61,000, and the total prime cost is $122,000.

Explanation:

In business terms, costs and expenses are categorized differently. The product costs are the costs involved directly in manufacturing a product, which include direct materials, direct labor, and manufacturing overhead. Therefore, the total product cost would be $80,000 (direct materials) + $42,000 (direct labor) + $19,000 (manufacturing overhead) = $141,000.

On the other hand, period costs are the costs that are not directly tied to a product, like selling and administrative expenses. Therefore, the total period cost is $22,000 (selling expenses) + $35,000 (administrative expenses) = $57,000.

Conversion costs are the costs of converting the raw materials into a finished product, these are direct labor and manufacturing overhead. So the conversion cost is = $42,000 (direct labor) + $19,000 (manufacturing overhead) = $61,000. The prime costs refer to the direct costs of production, these are direct materials and direct labor, prime cost = $80,000 (direct materials) + $42,000 (direct labor) = $122,000.