Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $28 million per year. Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of $27 million per year. Shao plans to serve the route for only 10 years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is 9%. By how much would the value of the company increase if it accepted the better project (plane)

Answers

Answer 1

Answer:

41.28 million

Explanation:

the net present value of the two alternatives needs to be determined. The appropriate alternative would be the plane with the higher NPV

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Alternative 1

Cash flow in year 0 = $-100 million

Cash flow each year from year 1 to 5 =  $28 million

I = 9%

NPV = $8.91 million

Alternative 2

Cash flow in year 0 = $-132 million

Cash flow each year from year 1 to 10 =  $27 million

I = 9%

NPV = $41.28 million

The second alternative has the higher NPV and it would increase the value of the company by $41.28 million if accepted

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  


Related Questions

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,400 units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $6,700 65%
Conversion costs $7,800 45%
A total of 8,500 units were started and 6,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs $126,500
Conversion costs $208,000
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:_____.
a. $18.42.
b. $19.02.
c. $19.91.
d. $17.60.

Answers

Answer: $27.14

Explanation:

First find the ending inventory:

= Beginning inventory + Units started - units transferred

= 1,400 + 8,500 - 6,900

= 3,000 units

Conversion EUP = Units transferred + (50% * ending inventory)

= 6,900 + (35% * 3,000)

= 7,950 units

Conversion cost per EUP:

= (Beginning conversion cost + month conversion cost) / EUP

= (7,800 + 208,000) / 7,950

= $27.14

The options are probably for another variant of this question.

Which aspect of production planning might make use of a Gantt chart?
A.
routing
B.
loading
C.
scheduling
D.
dispatching
E.
inspection

Answers

I think it would be C

The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $71,000 to an employee of the company and received back a one-year, 9 percent note. b. Dec. 31 Accrued interest on the note. 2018 c. July 1 Received interest on the note. (No interest has been recorded since December 31.) d. July 1 Received principal on the note. Required: Prepare the journal entries that Smart Solutions Inc. would record for the above transactions.

Answers

Answer:

Jul 1, 2017

Dr Notes receivable $71,000

Cr Cash $71,000

Dec 31, 2017

Dr Interest receivable $3,197

Cr Interest revenue $3,197

Jul 1, 2018

Dr Cash $6,390

Cr Interest receivable $3,197

Cr Interest revenue $3,197

Jul 1, 2018

Dr Cash $71,000

Cr Notes receivable $71,000

Explanation:

Preparation of the journal entries that Smart Solutions Inc. would record

Jul 1, 2017

Dr Notes receivable $71,000

Cr Cash $71,000

(Being To record given loan to employee and receipt a note)

Dec 31, 2017

Dr Interest receivable $3,197

(71000*9%*6/12)

Cr Interest revenue $3,197

(Being To record interest accrued)

Jul 1, 2018

Dr Cash $6,390

(3197+3197)

Cr Interest receivable $3,197

Cr Interest revenue $3,197

(71000*9%*6/12)

(Being To record receipt of the interest on maturity date)

Jul 1, 2018

Dr Cash $71,000

Cr Notes receivable $71,000

(Being To record receipt of the full principal)

An example of two way communication

Answers

Answer:

Radio, telephone, and computer-aided dispatch systems etc.

Explanation:

Hope it helps,

Pls mark me as the brainliest

Thank you

Winston Company estimates that the factory overhead for the following year will be $478,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,600 hours. The total machine hours for the year were 54,000 hours. The actual factory overhead for the year was $986,000. Enter the amount as a positive number.

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 478,800 / 26,600

Predetermined manufacturing overhead rate= $18 per machine hour

Now, we can allocate overhead:

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

Allocated MOH= 18*54,000

Allocated MOH= $972,000

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 986,000 - 972,000

Underallocated overhead= $14,000

define liquidity risk.​

Answers

Explanation:

Liquidity risk occurs when an individual investor, business, or financial institution cannot meet its short-term debt obligations.

Question 11 (3 points)
When considering the costs and benefits of a decision, you should do something as
long as
a) the benefits are less than the costs
b) the costs are less than the benefits
c) the costs and benefits are both high
d) the costs and benefits are both low

Answers

Answer:b

Explanation:

I think it is

Income Statement Project
2018 2019 2020
Revenue:
Book Sales
Ticket Sales
Total Revenue:
Expenses:
Salary
Depreciation
Supplies
Rent Insurance
Total Expense:
Net Income/Loss:
Directions: Build an income statement using the steps provided below.
1) The book store received $50,000 in book sales for 2018, with a 20% increase in revenue each year.
2) Jack's book store received $15,000 each year in ticket sales to book signing events.
3) Find the Total Revenue each year for 2018-2020 using cell referencing.
4) Jack's book store paid $16,000 in employee salaries in 2018. Each year his employee salary cost increased by 25%.
*5) Jack purchased store furniture for $25,000 that is expected to be used over the next 5 years.
6) Jack bought $3,000 in supplies in 2018 and supplies costing $1,000 were used up each year.
'7) Jack signed a contract to pay $800/month for rent between 2018-2020.
8) Jack's book store pays $500 each month to cover insurance.
9) Find the Total Expense each year for 2018-2020 using the SUM function.
10) Find the Net Income/Loss using cell referencing.

Answers

Answer:

Jack's Bookstore

Income Statement Projection:

                                    2018          2019         2020

Revenue:

Book Sales               $50,000    $60,000    $72,000

Ticket Sales                 15,000       15,000       15,000

Total Revenue:        $65,000    $75,000     $87,000

Expenses:

Salary                       $16,000     $20,000    $25,000

Depreciation               5,000          5,000         5,000

Supplies                       1,000           1,000          1,000

Rent                            9,600          9,600         9,600

Insurance                   6,000          6,000         6,000

Total Expense:      $37,600       $41,600    $46,600

Net Income/Loss: $27,400       $33,400    $40,400

Explanation:

a) Data and Calculations:

Book Sales for 2019  = $60,000 ($50,000 * 1.20)

Book Sales for 2020 = $72,000 ($60,000 * 1.20)

Salaries for 2019 = $20,000 ($16,000 * 1.25)

Salaries for 2020 = $25,000 ($20,000 * 1.25)

Depreciation expense per year = $5,000 ($25,000/5) using the straight-line method

Supplies Expense per year = $1,000 ($3,000/3)

Rent Expense per year = $9,600 ($800 * 12)

Insurance Expense per year = $6,000 ($500 * 12)

Name one thing you're afraid of when you think of college and career.

Answers

Answer:

finances

Explanation:

College is expensive and people that go to college have an expectation of landing a great paying job.  Reality is that is not always the case.  Often leading to a long time of paying of student debts.

Cahuilla Corporation predicts the following sales in units for the coming four months:
April May June July
Sales in units 240 280 300 240
Each month's ending Finished Goods Inventory in units should be 40% of the next month's sales. March 31 Finished Goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of direct material B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:_________.
a. 1,008 lbs.
b. 1,854 lbs.
c. 1,422 lbs.
d. 276 lbs.
e. 288 lbs.

Answers

Answer:

Purchases= 1,854 pounds

Explanation:

To calculate the direct material purchases, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Production= 280*5 + (300*0.4)*5= 2,000 pounds

Desired ending inventory= [(300*0.6)*5* + (240*0.4)*5]*0.3= 414 pounds

beginning inventory= (280*0.4)*5= (560) pounds

Purchases= 1,854 pounds

Month-end & Year-end process helps to write-off bad debts.

Select one:

True

O False​

Answers

Answer:

False

Explanation:

It is FALSE that Month-end and Year-end process helps to write-off bad debts.

This is because both month-end and year-end processes are processes specifically carried out to adjust all account balances to make and depict the actual financial activities of the firm. This assists the firm's management team to make a further decision, but not to just write-off bad debts.

Bad debt is written off only when a customer invoice is deemed to be uncollectible.

Organizers of an outdoor summer concert in Toronto are concerned about the weather conditions on the day of the concert. They will make a profit of $42,000 on a clear day and $12,000 on a cloudy day. They will make a loss of $6,000 if it rains. The weather channel has predicted a 52% chance of rain on the day of the concert. Calculate the expected profit from the concert if the likelihood is 11% that it will be sunny and 37% that it will be cloudy.

Answers

Answer:

$5,940

Explanation:

Calculation for the expected profit

Expected profit= (42,000*0.11)+(12,000*0.37)+(-6,000*0.52)

Expected profit=4,620+4,440+(-3,120)

Expected profit=$5,940

Therefore Expected profit will be $5,940

Megasoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Megasoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions).June 30, 2016 June 30, 2015Accounts Receivable, Net of Allowance for Doubtful Accounts of $310 and $360 $ 16,950 $ 15,700Net Revenues 68,000 62,000According to its Form 10-K, Megasoft recorded Bad Debt Expense of $22 and did not recover any previously written-off accounts during the year ended June 30, 2016.Required:What amount of accounts receivable was written off during the year ended June 30, 2016? (Enter your answer in millions.)What was Megasoft’s receivables turnover ratio in 2016? (Round your answer to 1 decimal place.)

Answers

Answer:

Megasoft Corporation

1. The amount of accounts receivable that was written off during the year ended June 30, 2016 was:

= $72 million

2. Receivable Turnover Ratio in 2016

= 2016 Net Sales/Average receivables

= $68,000/$16,660 = 4.1

Explanation:

a) Data and Calculations:

                                        June 30, 2016   June 30, 2015

Net Sales Revenue              $68,000            $62,000

Accounts Receivable

(all amounts in millions)      $17,260             $16,060

Allowance for

Doubtful Accounts of                  310                    360

Net Accounts receivable   $ 16,950             $ 15,700

Bad Debts Expense = $22

Allowance for Doubtful Accounts

Date                 Account Titles          Debit      Credit

June 30, 2015 Beginning balance                  $310

2016                 Bad Debts Expense  22

2016                 Accounts receivable                  72

June 30, 2016 Ending balance    $360

Accounts Receivable

Date                 Account Titles          Debit      Credit

June 30, 2015 Beginning balance $16,060

2016                 Net sales                 68,000

2016                 Allowance for Doubtful               $72

2016                 Cash                                       66,728

June 30, 2016 Ending balance                     $17,260

Average receivables = $16,660 ($16,060 + $17,260)/2

Receivable Turnover Ratio in 2016

= 2016 Net Sales/Average receivables

= $68,000/$16,660 = 4.1

in the united states ,dollar bills, , and dimes are representative money

Answers

Answer:

In the United States, dollar bills, nickels, and dimes are Representative money It can be exchanged for a valuable good, was used in systems involved a "gold standard", and can be traded for a commodity such as silver.

Kapoor Company uses job-order costing. During January, the following data were reported:
a. Materials purchased on account: direct materials, $98, 500: indirect materials, $14, 800.
b. Materials issued: direct materials, $82, 500: indirect materials, $8, 800.
c. Labor cost incurred: direct labor, $67, 000: indirect labor, $18, 750.
d. Other manufacturing costs incurred (all payables), $46, 200.
e. Overhead is applied on the basis of 110 percent of direct labor cost.
f. Work finished and transferred to Finished Goods Inventory cost $230, 000.
g. Finished goods costing $215, 000 were sold on account for 140 percent of cost.
h. Any over-or under applied overhead is closed to Cost of Goods Sold.
1. Prepare journal entries to record these transactions.
2. Prepare a T-account for Overhead Control. Post all relevant information to this account. What is the ending balance in this account?
3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10, 000, and post all relevant information to this account. Did you assign any actual overhead costs to Work-in-Process Inventory? Why or why not?

Answers

Answer:

a. Direct Material Purchases (Dr.) $98,500

Indirect Material Purchase (Dr.) $14,800

Accounts Payable (Cr.) $113,300

b. Direct Material Issued (Dr.) $82,500

Indirect Material Issued (Dr.) $8,800

Cost of Goods Manufactured (Cr.) $91,300

c. Direct Labor Cost Incurred (Dr.) $67,000

Indirect Labor Cost Incurred (Cr.) $18,750

Manufacturing Conversion Cost (Cr.) $85,750

d. Manufacturing Overhead (Dr.) $46,200

Factory Overhead (Cr.) $46,200

Explanation:

Journal entries are prepared for the issuance of material and labor cost to the manufacturing department. These transactions are recorded to identify the cost of factory overhead and conversions costs.

The daily cost of producing pizza in New Haven is C(Q) = 4Q + (Q2/40); the marginal cost is MC = 4 + (Q/20). There are no avoidable fixed costs. What is the market supply function if there are 10 firms making pizza? If 20 firms are making pizza? What is the market supply curve under free entry? [HINT: As the first step, find the AC and show that AC is at its minimum when Q = 0.]

Answers

Answer:

[tex]q_{10}[/tex] = 200P - 800

[tex]q_{20}[/tex] = 400P - 1600

Explanation:

let the supply function be : P = MC

P = 4 + Q/20

therefore Q = 20P - 80 ( supply function )

For 10 firms

Q = 10( 20P - 80 ) = 200P - 800

for 20 firms

Q = 20(20P - 80 ) = 400P - 1600

next determine market supply curve under free entry

AC = 4 + Q/40

Hence ; when Q = 0 , AC = 4   and this is for unlimited number of firms

Freeman Company's accounting records include the following information: Payments to suppliers $ 47,000 Collections on accounts receivable 99,000 Cash sales 26,000 Income taxes paid 4,400 Equipment purchased 14,900 What is the amount of net cash provided by operating activities indicated by these transactions?

Answers

Answer:

$73,600

Explanation:

Cash flow from Operating Activity

Cash sales                                                          $26,000

Collections on accounts receivable                 $99,000

Payments to suppliers                                      ($47,000)

Cash generated from operations                     $78,000

Income taxes paid                                              ($4,400)

Net cash provided by operating activities       $73,600

therefore,

the amount of net cash provided by operating activities indicated by these transactions is $73,600

Choose the correct category for the items from Sun Company's perspective.
1) Real Assets
2) Financial Assets
a. Land purchased by Sun Company from a local finance company
b. Sun Company's administration building, which houses the finance department
c. Sun Company's inventories of raw materials
d. Accounts receivable: money owed to Sun Company by other companies who have purchased products on credits
e. Sun Company's corporate checking accounts

Answers

Answer:

a. Land purchased by Sun Company from a local finance company

1) REAL ASSETS, the land exists as a physical asset regardless of the company's transaction.

b. Sun Company's administration building, which houses the finance department

1) REAL ASSETS, the building exists as a physical asset regardless of the company's transaction.

c. Sun Company's inventories of raw materials

1) REAL ASSETS, the inventories exists as a physical asset regardless of the company's transaction.

d. Accounts receivable: money owed to Sun Company by other companies who have purchased products on credits

2) FINANCIAL ASSETS, accounts receivable is a financial concept, not a physical asset

e. Sun Company's corporate checking accounts

2) FINANCIAL ASSETS, checks is a financial concept that represent money, not a physical asset

Instructions
1. Column C. should be type asset liabilitt revenue equity or expense
2. Coloumn D OR E should have a YES OR NO.
3. Fill in debit or credit- which is normal balance of the account, (INCREASE SIDE)
4. Fill in which type of account is it? Temporary or permanent.
Account Name Type: Asset, Will be Will be Normal Temporary or
liability, equity, on the on the Balance Permanent
revenue or Income balance is Debit
Expense statement Sheet or Credit
Cash
Capital Stock
Mortgage Payable
Interest Receivable
Supplies
Account Payable
Short Term Investments
Repair Expense
Unearned Service Revenue
Equipment
Depreciation Expense
Interest Revenue
Salaries Expense
Retained Earnings
Accumulated Depreciation
Utilites Expense
Salaries Payable
Account Receivable
Notes Payable
Service Revenue"

Answers

Answer:

I attached a picture of an Excel table I used to work this. I also attached the proper format of the question that I found that helped answer this.

Cincinnati Exporters wants to raise $40 million to expand its business. To accomplish this, it plans to sell 22-year, $1,000 face value, semiannual coupon bonds. The bonds will be priced to yield 6.85 percent and coupon rate of 5.72 percent. What is the minimum number of bonds it must sell to raise the money it needs

Answers

Answer:

Minimum number of units to be issued = 45,791.4 units

Explanation:

The units of the bonds to be sold to raise the money equals to the price of the bonds divided by the sum to be raised

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

Semi-annual coupon rate = 5.72/2 = 2.86 %

Semi-annual Interest payment =( 2.86 %×$1000)= $28.6

Semi annual yield = 6.85%/2 = 3.42%

PV of interest payment  

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield -3.42%, n- no of periods- 2 × 22 = 44 periods

= 28.6× (1-(1.0342)^(-44)/0.0342)= 645.82

 

Step 2  

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 7, r- 4.5%  

= 1,000 × (1+0.0342)^(-2×22)

= 1000 × 1.0342^(-44)= 227.7

Step 3

Price of bond = PV of interest payment + PV of RV

645.82 + 227.7= 873.525

Minimum number of units to be issued = $40 million/873.5= 45,791.4 units

 

Minimum number of units to be issued = 45,791.4 units

You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. The bond rate is 6.6% per year payable semi-annually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 3% per year compounded semi-annually, what will be your minimum selling price for the bond?

Answers

Answer:

Minimum selling price for the bond = $11350.38

Explanation:

Given - You have just purchased a municipal bond with a $10,000 par

             value for $9,500. You purchased it immediately after the previous

             owner received a semi-annual interest payment. The bond rate is

             6.6% per year payable semi-annually. You plan to hold the bond for

             4 years, selling the bond immediately after you receive the interest

              payment. If your desired nominal yield is 3% per year compounded

              semi-annually.

To find - What will be your minimum selling price for the bond?

Proof -

Formula for Bond value is -

Bond value = [tex]\frac{Coupon Amount}{( 1+ Interest rate)^{1} } + \frac{Coupon Amount}{( 1+ Interest rate)^{2} } + \frac{Coupon Amount}{( 1+ Interest rate)^{3} } + .....\frac{Coupon Amount}{( 1+ Interest rate)^{n} }[/tex]

As given,

Coupon Rate = 6.6%

⇒Coupon Rate for semi-annual = 3.3%

and hereby time period becomes double i.e 8 years.

Now,

Interest rate = 3%

For semi-annual , interest = 1.5%

Now,

Coupon amount = 10,000×3.3% = 330

Now,

Bond value = 330 ×PVIF(1.5% , 8) + 10,000×IVAF(1.5%, 8)

                   = 330×7.486 + 10,000×0.888

                   = 11350.38

∴ we get

Minimum selling price for the bond = $11350.38


Logan is working on a game development team that will be in charge of creating
storyboards and documenting the game plot, ultimately creating the design
documents needed to make the game. What specific team is Logan working on?

1)production team
2)pre-production team
3)post-production team
4)art design team

Answers

Logan is working in the Pre-Production team

Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?

Answers

Answer:

$836.08 per month

Explanation:

In order to calculate Cindy's new monthly rent, we would simply need to divide the renter's insurance by 12 since there are 12 months in a year. and then add that product to her monthly rent like so...

565.00 / 12 = 47.08

789 + 47.08 = 836.08

Finally, we can see that Cindy's new rent after including the renters insurance would be $836.08 per month

PLEASE HELP WITH THIS

Answers

Answer:

1: B

2: A

3: D

4:C

5: C

6: C

7: D

8: Q

Explanation:

I'm leaning this rn

Amrik started a business on 1 January 2017 and purchased a machine costing $18 000. He decided to depreciate the machine at 20% per annum using the reducing (diminishing) balance method. No depreciation was to be charged in the year of disposal. The machine was up sold for \$13 30 300 on 1 July 2018. What was the profit or loss on the sale of the machine? A Loss $1100 B Loss $4700 C Profit $1780 D Profit $2500 ОА Ов Ос OD

Answers

Answer: A. Loss $1,100

Explanation:

Value at the end of the first year after depreciation:

= 18,000 * (1 - 20%)

= $14,400

No depreciation was charged in the year of sale which is 2018 so only a year of depreciation applies.

Profit (loss) = Sales price - Net book value

= 13,300 - 14,400

= -$1,100

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $1,098,900. The conversion cost for the period in the Bottling Department is $603,000. The total equivalent units for direct materials and conversion are 33,300 liters and 6,700 liters, respectively. Determine the direct materials and conversion cost per equivalent unit.

Answers

Answer:

direct materials =  $33.00

conversion cost = $90.00

Explanation:

Cost per equivalent unit = Cost during the period ÷ Equivalent units of Production

The direct materials and conversion cost per equivalent unit.

Direct materials = $1,098,900 ÷ 33,300 liters = $33.00

Conversion cost = $603,000 ÷ 6,700 liters = $90.00

If a company's scope is too big what is likely to happen?

Answers

Answer:

The company will lose direction and focus.

Explanation: ;)

A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase of a three-bedroom lodge in upper Montana that will cost $220,000. The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $400 per month for utilities and the investment increases at a rate of 0.75% per month, how long would it be before the company could sell the property for $100,000 more than it has invested in it

Answers

Answer:

59.5 months

Explanation:

initial investment x (1 + appreciation rate)ⁿ = initial investment + $100,000 + ($400 x n)

$220,000 x (1 + 0.75%)ⁿ = $320,000 + $400n

1.0075ⁿ = $320,000/$220,000 + $400n/$220,000

1.0075ⁿ = 1.4545 + 0.001818n

I tried to solve it by trial and error:

50 months:

1.453 ≠ 1.5454

60 months:

1.566 ≈ 1.564 ⇒ Almost

61 months:

1.577 ≠ 1.565

59 months:

1.554 ≈ 1.562 ⇒ Almost

59.5 months:

1.56 = 1.56  

Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity? an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds new federal legislation that raises the legal driving age to twenty-four in all states a new fee that used car dealers must pay to the government on all sales of used cars all of the above because each is consistent with the "law of demand"

Answers

I don’t know just for the points sorry

A market-clearing price, often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal. Hence quantity will increase .

What is Equilibrium price and quantity ?

The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like.

Economic equilibrium in economics refers to a scenario where supply and demand are balanced and the values of economic variables do not change in the absence of external factors.

The only price at which consumer and producer preferences coincide is the equilibrium price; in other words, the price at which consumers want to purchase the same quantity of the good (quantity demanded) as producers do.Manufacturers want to sell (quantity supplied).

The equilibrium quantity is that amount that both parties seek equally. Any other price causes the market to be out of equilibrium since the amount requested does not match the quantity supplied. From the previous explanations of surpluses and shortages, it should be obvious that if a market is out of equilibrium, market forces will drive it into equilibrium.

Learn more about Equilibrium here

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# SPJ 2

When the number of units produced equals the number of units sold, ______. Multiple select question. absorption costing net income is greater than variable costing net income absorption costing total expense is greater than variable costing total expense absorption costing net income is equal to variable costing net income all fixed overhead incurred flows to the income statement under both costing methods absorption costing total expense is less than variable costing total expense absorption costing net income is less than variable costing net income

Answers

Answer:

absorption costing net income is equal to variable costing net income.

Explanation:

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Additionally, negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.

When the number of units produced equals the number of units sold, absorption costing net income is equal to variable costing net income as all the fixed overhead are entered into the income statement and thus, there wouldn't be any change in inventory.

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