Answer:
$8,300
Explanation:
Calculation for what Elroy's incremental profit or loss would be if he chooses option 2 over option 1
Using this formula
Incremental Profit of option 2 over option 1= Profit from option 1 - Profit from option 2
Let plug in the formula
Incremental Profit of option 2 over option 1= ($3,600*3)-(3*$1,100 - $800)
Incremental Profit of option 2 over option 1= $10,800 - $2,500
Incremental Profit of option 2 over option 1= $8,300
Therefore Elroy's incremental profit or loss would be if he chooses option 2 over option 1 would be $8,300
Answer:
Explanation:
We were informed from the question that;
BEFORE; the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle.
AFTER; After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle and producers receive $3 per bottle (after paying the tax).
✓✓The amount of tax on wine = $6 - $3 = $3 per bottle
✓✓The tax burden on consumers = The amount paid after tax - The amount paid before tax
= $6 - $4
=$2 per bottle
✓✓The tax burden on Producers = Price received before tax - price received after tax
= $4 - $3
=$1 per bottle
Hence, The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the burden that falls on consumers is $2 per bottle, and the burden that falls on producers is $1 per bottle.
The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers(FALSE)
This is false, since the The tax burden on Producers is $1 per bottle while that of The tax burden on consumer is $2 per bottle.
Answer:
In an Internal Service Fund, the expectation is that:_____.
A. Each year's revenues should equal each year's expenses because the revenues are simply an allocation of that year's expenses.
Explanation:
There are two proprietary funds used in governmental accounting. One is the internal service fund. The other one is the enterprise fund. The internal service fund tracks the goods or services rendered by a service department to other governmental departments. It is established on a cost reimbursement basis. This is why the expenses for the year are expected to equal the annual revenue.
Answer: The correct answer is "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.".
Explanation: The statement "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return." is FALSE, because it is the opposite, that is Without trading, the portfolio weights will <u>increase</u> for the stocks in the portfolio whose returns are above the overall portfolio return.