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2 years ago

If macaroni and cheese is an inferior good, then an increase in ____

Business

1 answer:

Anvisha [2.4K]2 years ago

5 0

Answer:

The correct answer is option C.

Explanation:

An inferior good is a good that has a negative income elasticity. It means that when consumer's income increases the demand for inferior goods decreases and vice versa.

If macaroni and cheese is an inferior good, then an increase in consumer's income will cause the demand for macaroni and cheese to decrease. This decrease in demand will cause the demand curve to shift to the left.

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3 years ago

Julia gives importance to both relationships and tasks. She clarifies task objectives and setting policies and budgets. She also

Fantom [35]

Answer:

a. supporting leader style

Explanation:

in a supporting leadership style, the head of the team is aim at developing his or her team member (sub ordinate), training them to be independent and guide them on how to achieve a given task.

in this scenario, Julia shows a supporting leadership style by:

providing aid and guidance to her subordinates and

acknowledging their accomplishments and allows them to provide suggestions.

She is trying to help her subordinate to achieve the challenge tasks given to them.

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2 years ago

Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 11,833 shares authorized, 7,100 shares

pickupchik [31]

Answer:

a) 548,000 shares

b) The stated value = $3 per common stock.

c) The par value of the preferred stock = $100

d) The dividend rate of preferred stock = 7%

e) Reported for retained earnings = $1,079,600

Explanation:

A. Number of outstanding common stock = Number of Common stock - Treasury stock

Given,

Number of Common stock issued = 555,000 shares

Treasury stock = 7,000 common shares

Treasury stock is the purchasing of the company's own stock from the market.

Therefore, Number of outstanding common stock = (555,000 - 7,000) shares

Number of outstanding common stock = 548,000 shares.

The stock of the firm has no par value. It means the full amount is either in the premium or in stated value. Therefore, the firm's declared value of the common stock is the total common stockholders' equity divided by the total number of common stock issued.

Hence, the formula is,

The stated value = $\frac{total common stockholders' equity}{total number of issued common stock}$

The stated value = $\frac{1,665,000}{555,000}$

The stated value = $3 per common stock.

We know,

The par value of the preferred stock = $\frac{Total preferred stock amount}{Number of preferred stock}$

Given,

Total preferred stockholders' equity = $710,000

Number of preferred stock = 7,100 shares

Putting the value in the formula,

The par value of the preferred stock = $\frac{710,000}{7,100}$

The par value of the preferred stock = $100

It is the selling price to the preferred stockholders for every preferred stock.

Given,

The annual dividend = $49,700

Total preferred stockholders' equity = $710,000

We know, the dividend rate of preferred stock = $\frac{Annual Dividend paid to the preferred stockholders}{Total preferred stockholders' equity}$ x 100

Therefore,

The dividend rate of preferred stock = $\frac{49,700}{710,000}$ x 100

The dividend rate of preferred stock = 7%

This is a fixed rate and for this firm, it is cumulative. Therefore, the firm's preferred stockholders' will receive 7% dividend per year.

Since the preferred stock of this firm is cumulative, therefore, the dividend has to be paid to the preferred stockholders if there are any outstanding amount remains in the previous year. Therefore, if there were $71,400 arrears of dividends, the firm would give those amounts from the retained earnings' balance.

Given,

Retained earnings = $1,151,000

Arrear preferred dividend = $ (71,400)

The balance would be reported for retained earnings = $1,079,600

3 0

2 years ago

Assume a corporation has earnings before depreciation and taxes of $123,000, depreciation of $41,000, and that it has a 35 perce

Maslowich

Answer:

a. Computation of cash flow

Earnings before depreciation and taxes $123,000

Less: Depreciation $41,000

Earnings before taxes $82,000

Less: Taxes ($82,000*35%) $28,700

Earnings after taxes $53,300

Add: Depreciation $41,000

Cash Flow $94,300

b. If Depreciation = 21,000

Computation of cash flow

Earnings before depreciation and taxes $123,000

Less: Depreciation $21,000

Earnings before taxes $102,000

Less: Taxes($102,000*35%) $35,700

Earnings after taxes $66,300

Add: Depreciation $21,000

Cash Flow $87,300

3 0

2 years ago

The ABC Company has recognized the following demand for the next four quarters:

ioda

Answer: Subcontracting production

Explanation:

It is cheaper for ABC Company to subcontract the jobs than to hire and fire workers as needed. Even though the cost is similar when it comes to hiring permanent workers and training them vs subcontracting them, when the company needs to produce less goods, the cost of firing the permanent employees is simply too much.

For instance, 1,000 units out of the 4,000 units in the second quarter cannot be covered by the 30 workers they have. They will need to hire 10 additional workers and training them would cost $30,000. That is the same cost they would incur if they subcontracted (30 * 1,000 units = $30,000).

What happens in quarter 4 however, when they have to let go of 10 employees because production dropped by 1,000 units? They will have to pay $50,000. If they were subcontracting, they would not have to pay a dime. It is therefore better to subcontract.

5 0

2 years ago