Consider two markets: the market for coffee and the market for hot cocoa·The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 31.0. When the price is $9.75, the quantity supplied of coffee is 73.0 and the quantity supplied of hot cocoa is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places Supply in the market for coffee is O a.more elastic than supply in the market for hot cocoa O b. the same elasticity as supply in the market for hot cocoa. c. There is not enough information to tell which has a higher elasticity. d. less elastic than supply in the market for hot cocoa.

Answers

Answer 1
Answer:

Answer:

The elasticity of supply for hot cocoa is 1.43.

(D) Supply in the market for coffee is less elastic than supply in the market for hot cocoa

Explanation:

Using the midpoint formula,

Elasticity of supply for hot cocoa = (change in quantity supplied/average quantity supplied) ÷ (change in price/average price)

change in quantity supplied = 101 - 31 = 70

average quantity supplied = (101+31)/2 = 66

70/66 = 1.06

change in price = 9.75 - 4.5 = 5.25

average price = (9.75+4.5)/2 = 7.125

5.25/7.125 = 0.74

Elasticity of supply for hot cocoa = 1.06 ÷ 0.74 = 1.43. The supply for hot cocoa is elastic because the elasticity of supply is greater than 1.

Elasticity of supply for coffee = (73 - 31)/(73+31)/2 ÷ 0.74 = 42/52 ÷ 0.74 = 0.81 ÷ 0.74 = 1.09. The supply for coffee is elastic because the elasticity of supply is greater than 1.

However, supply in the market for coffee is less elastic than supply in the market for hot cocoa because the elasticity of supply for coffee is less than that of hot coffee.


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The goal of data analytics is to get results to make better decisions and better outcomes for business. Think about Descriptive, Predictive, and Prescriptive analytics and provide some examples with your thoughts behind your statements.

Answers

Answer:

Explanation:

Data analysis is a process used to explore, refine, modify, and model the data for finding useful information, making conclusions, and making decisions. Data analysis is a process used to obtain raw data and to make it more user-friendly by decision-making. The data is collected first, and then analyzed to answer questions, test hypotheses, or reject theories.

Descriptive analysis or statistics are one of the three basic parts of statistics science. It is the statistics about compiling, collecting, summarizing and analyzing numerical data. The main difference of descriptive statistics from inferential statistics or inductive statistics with more appropriate terms is that the goal of descriptive statistics is to express and summarize a data set as quantitative number values ​​or count or sort values, and about the character of the statistical population that is accepted to represent such data as inferential statistics. is not the goal of obtaining analytical expressions for predictive or hypothesis testing. Even though the analysis of quantitative data is a study aimed at obtaining its main results using inductive statistical analysis, descriptive statistics tools must be used to support formal analysis. For example, a study involving a formal statistical analysis with topics of human behavior typically covers the overall sample size, sample size of important subgroups, average age, male / female ratios of people treated as data subject, and various demographic, social or clinical characters. supplied with tables.

Predictive analytics is a class of data analysis methods that focuses on predicting the future behavior of objects and subjects in order to make optimal decisions. Predictive analytics uses statistical methods, data mining methods, game theory, analyzes current and historical facts to make predictions about future events. In business, predictive models use patterns found in historical and executed data to identify risks and opportunities. Models capture relationships among many factors to make it possible to assess the risks or potential associated with a particular set of conditions, guiding decisions about possible transactions. It is used in actuarial calculations, financial services, insurance, telecommunications, retail, tourism, healthcare, pharmaceuticals and other fields. One of the well-known applications is credit scoring, scoring models process credit history, loans, consumer data and other information and provide an assessment of a potential borrower in terms of prospective solvency and forecast of timely payments on loans. One of the drawbacks of predictive analytics is the weak accounting for qualitative shifts, changes after bifurcation points, since they are built on quantitative, probabilistic methods.

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You are considering an investment in a mutual fund with two share classes, A and B. Class A has back-end load that start at 4% and fall by 1% for each full year the investor holds the portfolio (until the fourth year) and management fee of 0.5%. Class B has no load but has management fee of 0.5% and 12b-1 fee of 1%. Suppose the gross return of this fund is a constant 10% per year. If you plan to invest for 2 years, your holding-period return from the two share classes would be 17.5% and 17.7%
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None of the above options is correct.

Answers

Add all together and total number you will get substract it from your main answers

Troy (single) purchased a home in Hopkinton, MA, on January 1,2007, for $300,000. He sold the home on January 1, 2016, for$320,000. How much gain must Troy recognize on his home sale ineach of the following alternative situations? d. Troy rented thehome from January 1, 2007, through December 31, 2011. He lived inthe home as his principal residence from January 1, 2012, throughDecember 31, 2012. He rented out the home from January 1, 2013,through December 31, 2013, and lived in the home as his principalresidence from January 1, 2014, through the date of the sale.Assume accumulated depreciation on the home at the time of sale was$0. Gain recognized? The answer is not $28,571 The answer is not$4,375

Answers

Answer:

$20,000

Explanation:

Time difference from the "Purchase date" to "Sale date" = 9 years (1/1/2007 to 1/1/2016)

Given that, in the 9 years, Troy rented the home for first 5 years (1/1/2007 to 1/1/2012), and lived in the home as his principal residence for next 1 year(1/1/2012 to 31/12/2012)

and again rented out the home for 1 year (1/1/2013 to 31/12/2013), and again started to lived in the home as his principal residence for next 2 years. (1/1/2014 to 1/1/2016)

i.e. when we look at the last 5 years before the sale of house, Troy has lived 3 years in the home as his principal residence.

And Troy has acquired the home for $300,000 and not acquired by "like kind exchange" of property.

As per IRS rules, a owner must live at least 2 years in the home as his principal residence & home must not be acquired by 1031 exchange (like/kind exchange).

Here, Troy satisfies both conditions. (He has lived more than 2 years, and not acquired by like/kind exchange)

So, as per above rules, Troy's home sale is eligible for Maximum exclusion of $250,000 gain (being Troy is Single)

Here, as per IRS rules, Gain = Amount Realized / Adjusted Basis = $320,000 - $300,000 = $20,000.

But, being Troy home sale is eligible for Maximum exclusion of $250,000, this $20,000 gain is deducted and Net Gain = $0.

Final answer:

Troy's gain on the sale of his home is $20,000. However, he is eligible to exclude this gain from taxation because he lived in the home as his principal residence for 2 out of the 5 years leading up to the sale, as per IRS guidelines.

Explanation:

Troy's gain on his home sale depends on his usage of the property and the IRS's rules on excluding gains from the sale of a principal residence. According to these rules, a person can generally exclude the gain up to $250,000 from the sale of a principal residence if they owned the house and lived in it as their main home for at least 2 out of the last 5 years before the sale. The years of ownership and use don't need to be consecutive.

Troy purchased the home in 2007 and sold it in 2016. He rented the home initially then lived in it as his principal residence, then rented it again, and lived in it again until the sale. Combining these periods, he lived in the house as his principal residence for only 3 years (2012, 2014, 2015). However, these years are within the 5-year window before the sale (2012-2016).

Troy's recognized gain is the selling price of the home minus the purchase price. Thus, his recognized gain is $320,000 - $300,000 = $20,000. However since he lived in the residence for 2 out of the 5 years before the sale, this gain is excluded from taxation, according to IRS rules.

Learn more about Home Sale Gain here:

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At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 2.8. If sales increase by 15%, profits will increase by:a.
15%

b.
18.67%

c.
2.8%

d.
42%

Answers

Answer:

Option D is correct (42%)

Explanation:

Option D is correct (42%)

In order to find the  profit we will proceed as follow:

Given data:

Operating leverage for Donuts Unlimited=2.8

Increase in sale=15%

sales level= $270,000

Required:

Increase in Profit=?

Solution:

% Increase In profit/net income=% Increase in Sales*Operating leverage

% Increase In profit=15%*2.8

% Increase In profit=42%

Of the following statements, which are true for the corporate form of organization?A. Directors oversee its business affairs.
B. Stockholders do not have the power to bind the corporation to contracts.
C. It has a continuous life.
D. Transfer of ownership rights among owners generally does not impact equity.
E. Compared to other forms of organization- capital (financing) is more difficult to accumulate.
F. Generally there is no double taxation on corporate income that is distributed to owners.
G. It is not a separate legal entity from its owners.

Answers

Answer:

1. Directors oversee its business affairs

This statement is true. Infact in an organization there are more than 1 director, generally 1 director for each department. So yes they look after business affairs

2. Ownership is usually transferred readily

This statement is true. Even in the case of public company, shares traded will take 2 to 5 business days to settle. However once the trade is done, ownership is considered transferred.

3. This is true. Stockholders have voting rights in rather bigger events such as acquisition, merger etc but not an day to day activities such as contracts.

4. Any corporation is established to continue forever. This is true.

5. This is false. Generally a corporate gets financing easily compared to other form of financing.

6. Income distributed to owners is taxed again as personal income. And income distributed is an after tax income from organization. So double taxation exist. This is false.

7. Assets of the corporation are collatarized for debt and not owner assets. So Owner is not liable. This is false.

A firm's dividend payments less any net new equity raised is referred to as the firm’s:a. operating cash flow.b. capital spending.c. net working capital.d. cash flow from creditors.e. cash flow to stockholders.

Answers

Answer:

The correct answer is letter "E": cash flow to stockholders.

Explanation:

The cash flow to stockholders is the amount of money a firm pays to its debtholders and stockholders. It is calculating by subtracting the dividends paid minus new equity -if raised any. The Board of Directors determines the amount and the period to be considered for the dividends and if they are paid from the organization's current earnings or the reserve revenues.

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