b. True or false: an income elasticity of demand of 0.45 for all medical products implies that consumption will be higher among low-income people than among high-income groups. Explain

Answers

Answer 1
Answer:

Answer:

False.

Explanation:

Elasticity of demand is a measure of the responsiveness of changes in demand to change in price.

The value of elasticity shows type of good. Negative elasticity indicates that a good is inferior, and people will buy it when their income is low. But once income rises they will buy more luxurious goods. That is not the case here as elasticity is positive.

When elasticity is positive the good is a normal good and increase in income will result in increase in amount demanded of the good.

In the scenario give a positive elasticity of 0.45 should result in higher consumption among higher income people than lower income people.


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Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported steel rods. Read the following scenario and answer the question that follows. The president of the United States argues that the United States should threaten to impose a tariff on Chinese steel rods in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the pundit using to argue for the trade restriction on steel rods? a. National-security argument b. Infant-industry argument c. Jobs argument d. Using-protection-as-a-bargaining-chip argument e. Unfair-competition argument

A client has an options account that is qualified to buy options and sell covered calls. The client calls his representative, telling him that he wants to sell naked calls in the account. Which statement is TRUE about this?A. The representative can do this without taking any further action
B. The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction
C. The "Options Disclosure Document" must be provided before executing the transaction
D. The representative must open a separate options account for the customer and segregate the resulting naked options positions

Answers

Answer:

The correct answer is letter "B": The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction.

Explanation:

A naked call is a type of strategy options traders use when writing a call option without owning the underlying assets. For this to be possible, the trader must sign an options agreement and the Registered Options Principal (ROP) must approve the account so the trader can write naked options.  

Before proceeding the "Special Statement for Uncovered Options Writers" must be provided.

White Company budgeted for $200,000 of fixed overhead cost and volume of 40,000 units. During the year, the company produced and sold 39,000 units and spent $210,000 on fixed overhead. The fixed overhead cost spending variance is: $5,000 unfavorable. $10,000 unfavorable. $5,000 favorable. $10,000 favorable.

Answers

The fixed overhead cost spending variance is $5,000 unfavorable. Thus the correct option is 1.

What is fixed overhead?

Costs known as fixed overheads are expenses that don't vary based on variations in the volume of business activity each month. These expenses are necessary in order to run a business.

The calculation for fixed overhead is

Fixed overhead  rate= Budgeted overhead cost/ Budgeted volume

                                  = 200,000/40,000

                                  = 5 per unit of output

The Fixed overhead absorption rate is 5 per unit of output.

Calculation for fixed overhead cost spending variance

= (Actual output- budgeted output) * Fixed  overhead absorption rate

=(39,000-40,000)* $5

=$5,000 unfavorable

Hence, the fixed overhead cost spending variance is $5,000 unfavorableTherefore, option 1 is appropriate.

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Answer:

$8,000

Explanation:

this is the answer hopefully....

Which is an example of a businessman making an investment?he receives financing from an angel investor
he contributes money to a partnership
he applies for a small business loan
he reports investor fraud to the SEC

Answers

The one that can be stated as an example of a businessman who is making an investment is by making a contribution in the form of money to a partnership. Hence, Option B is  correct.

What is a businessman?

An individual who owns or has shares in a private sector and engages in commercial or industrial activities to generate cash flow, sales, and income by combining human, financial, intellectual, and physical capital with the goal of sustaining is referred to as a businessman or businesswoman.

Although it is a difficult career path, those who choose business reap the rewards of their labour and have access to employment options in almost every industry.

One may find them in almost any company, managing operations, hiring and firing staff, keeping the books balanced, and managing funds. The one that can be used as an illustration of a businessman investing is by giving a financial contribution to a partnership.

Therefore, Option B is  correct.

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Answer:

he contributes money to a partnership

Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, and variable overhead of $50. The company expects fixed overhead costs of $645,000 and fixed selling and administrative costs of $111,000 for the next year. It expects to produce and sell 10,500 snowboards in the next year.Required:
What will be the selling price per unit if Garcia uses a markup of 15% of total cost?

Answers

Answer:

Selling price = $301.3

Explanation:

The selling price would be determined by adding the total unit cost to the mark- up.

Mark up is the proportion of cost that is to be earned as profit.

Selling price = Total unit cost + Profit

Profit = 25% × unit cost

Selling price = Unit cost + Mark-up

Selling price = Unit cost + (15%× unit cost)

Total unit cost =Variable cost + unit fixed cost

Total fixed cost = 645,000 +  111,000 = 756,000

Unit fixed cost = $756,000/10,500 =×72

Total unit cost = 105 + 35 + 50 + 72 = 262

Selling price = 262 + ( 15% + 262) = 301.3

Selling price = $301.3

Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,030 units that were 75% completed. 10,000 units were started into the process during January. On January 31, the inventory consisted of 400 units that were 40% completed. What would be the equivalent units for conversion cost using the weighted average method

Answers

Answer:

Equivalent units for conversion cost is 10,790 units

Explanation:

Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630

Ending Work In Process 400 x 40%                                         =     160

Total  equivalent units for conversion cost                              = 10,790

CoolBreeze Manufacturing produces a single product, a tabletop fan. They reported the following information from their operations last period:___________. Cost of Direct Materials used in production: $50,000
Cost of Direct Labor wages: $37,500
Variable Manufacturing Overhead: $25,000
Fixed Manufacturing Overhead: $125,000
Total units produced: 10,000
Under absorption costing what was the per-unit cost of the units produced?
a. None of the above
b. $23.75
c. $12.50
d. $11.25
e. $8.75

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Cost of Direct Materials used in production: $50,000

Cost of Direct Labor wages: $37,500

Variable Manufacturing Overhead: $25,000

Fixed Manufacturing Overhead: $125,000

Total units produced: 10,000

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the total cost:

Total cost= 50,000 + 37,500 + 25,000 + 125,000

Total cost= $237,500

Now, the unitary cost:

Unitary cost= 237,500/10,000= $23.75

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