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2 years ago

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for steel

1 answer:

3 0

Direct relation. If iron is used to make steel, and iron is cheaper now, steel will also be cheaper. Decrease in price can mean they have a bunch of it, a surplus.
Supply and demand says if you got a lot of something prices go down. So if you have a lot of cheap iron, you can make a lot of cheap steel

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E3-27 (book/static) The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants to

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Explanation:

Contribution Margin=Sales - variable cost =$8.75-$3.50=$5.25

Contribution Margin Ratio = Contribution Margin / Sales = $5.25/ $8.75=60%

Pre-Tax Net Income=Net Income/(1-tax rate)

$117,600/(1-0.36)=$183,750

Target Revenue =Fixed cost +Target Pre-Tax net Income/Contribution margin Ratio =($430,500+$183,750)/0.6=$1,023,750

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Fixed costs/Contribution margin per unit=$430,500/$5.25=82,000 Customers

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2 years ago

In 2016, the population of the United States was approximately 325 million people, with an annual growth rate of approximately 0

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The population would be 1318 million

Explanation:

Acording to the formula

Nt = population size in generation t

No = initial population size.

e= number e

T= number o years

r = rate

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2 years ago

Payback period computation; even cash flows LO P1

uranmaximum [27]

Answer:

A. 2.2 years

B. 3.6 years

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

Payback = amount invested / annual cash flows

Payback period is calculated using cash flows. So, the net income has to be changed to cash flows by adding back depreciation.

For the first machine

Straight line depreciation expense = (Cost of asset - salvage value) / number of years

( $520,000 - $10,000) / 6 = $85,000

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Payback period for machine a = $520,000 / $235,000 = 2.2 years

Pay back period For machine b =

$380,000 / $105,000 = 3.6 years

I hope my answer helps you

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2 years ago

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for​ steel

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for steel