What kind of good is It? Determine whether each of the following goods is a private good, a public good, a common resource, or a club good. Private Good Public Good Common Resource Club Good
A cabana along beach that is open to the public
A new sUV that you use to drive your friends around town
A large, beautiful fountain in a town square

Answers

Answer 1

Answer:

Answer: Please refer to Explanation

Explanation:

Private Goods are those goods that exclusive and excludable. This means that people can be prevented from using it by the owners if the people who want to use it don't pay for it or reach an agreement with the owner.

A Public Good on the other hand is provided to every member of the public for use. They are non-excludable meaning that people can use them without having to pay a fee.

Common Resources are a mixture of both man-made and natural resources. As such, even though it is open to the public, it's use can be restricted by certain requirements such as payment.

Classifying the above,

A. Common Resource.

The Cabana is a common Resource because it is open to all members of the public and is a man-made resource on the beach which is a public good. However, one must pay to use it as well.

B. Private Good.

The SUV is your own personal property and as such is a private good whose use you can restrict from people making it exclusive and excludable.

C. Public Good.

The fountain is for everyone and no one has more right to it than others. Neither do they have to pay to view it. This makes it a Public good.

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Wide Open Industries Inc. has fixed costs of $475,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:Product Selling Price Variable Cost per Unit Contribution Margin per UnitAA $145 $105 $40BB 110 75 35The sales mix for products AA and BB is 60% and 40%, respectively. Determine the break-even point in units of AA and BB. Round your interim computations to nearest cent, if required.a. Product AA unitsb. Product BB units

Garfield Industries is expanding its operations throughout the Southeast United States. Garfield anticipates that the expansion will increase sales by $1,000,000, and increase the costs of goods sold by $700,000. Depreciation expenses will rise by $50,000 and interest expense will increase by $150,000. The company’s tax rate will remain at 40 percent. If the company’s forecast is correct, how much will net income increase or decrease, as a result of the expansion?

Answers

Answer:

$60,000 increase

Explanation:

The company's additional earnings before interest and taxes (EBIT) are subjected to a 40% tax rate. The company's EBIT is:

$EBIT = Sales - Cost+Depreciation\nEBIT = 1,000,000-700,000+50,000\nEBIT =\$350,000$

The change in income is determined as the EBIT minus taxes and interest expense:

$I = \$350,000*(1-0.4) -\$150,000\nI=\$60,000$

Therefore, Garfield Industries experienced a $60,000 increase in its income as a result of the expansion.

Final answer:

The net income will increase by $100,000 as a result of the expansion.

Explanation:

To calculate the net income increase or decrease, you need to subtract the increased costs of goods sold, depreciation expenses, and interest expense from the increased sales. The tax rate of 40 percent should be applied to the resulting amount to calculate the net income. So, the net income increase or decrease can be calculated as follows:

Increased sales: $1,000,000
Increased costs of goods sold: $700,000
Depreciation expenses increase: $50,000
Interest expense increase: $150,000

Net income increase or decrease = (Increased sales - Increased costs of goods sold - Depreciation expenses increase - Interest expense increase) * Tax rate

= ($1,000,000 - $700,000 - $50,000 - $150,000) * 0.40

= $100,000

Therefore, the net income will increase by $100,000 as a result of the expansion.

Exercise 10-6 Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.40 pounds $ 2.60 per pound $ 19.24 Direct labor 0.45 hours $ 8.00 per hour $ 3.60 During the most recent month, the following activity was recorded: 12,100.00 pounds of material were purchased at a cost of $2.50 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 575 hours of direct labor time were recorded at a total labor cost of $5,750. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Direct material:

Standard= 7.40 pounds $ 2.60 per pound

Actual= 12,100 pounds of material were purchased for $2.50 per pound.

Direct labor:

Standard= 0.45 hours $ 8.00 per hour

Actual= 575 hours of direct labor time were recorded at a total labor cost of $5,750

Units produced= 1,500

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2.6 - 2.5)*12,100

Direct material price variance= $1,210 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

standard quantity= 1,500*7.4= 11,100

Direct material quantity variance= (11,100 - 12,100)*2.6

Direct material quantity variance= $2,600 unfavorable

To calculate the direct labor efficiency and rate variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 1,500*0.45= 675

Direct labor time (efficiency) variance= (675 - 575)*8

Direct labor time (efficiency) variance= $800 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 5,750/575= $10

Direct labor rate variance= (8 - 10)*575

Direct labor rate variance= $1,150 unfavorable

Hammer Time Company sells hammers that it purchases at a cost of $5. Hammer Time sells the hammers for $15. Last year, it sold 12,000 hammers. The company estimates that it can sell 5,000 more hammers than last year if it decreases the selling price to $10 per hammer. What is the budgeted sales revenue if Hammer Time implements the decrease in selling price?

Answers

Answer:

The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.

This would generate a decrease of $10,000 in the sales revenue

Explanation:

Understanding the way sales revenue is generated:

$Units Sold * Unit Price = $Sales Revenue$

If the selling price drops to $10

and units sold increase by 5,000

$(12,000 + 5,000) * ( 15 - 5 ) = 17,000 * 10 = 170,000$

Comparing with the previous year:

$12,000 * 15 = 180,000$

This policy decrease the sales revenue which makes the business less profitable.

Which document must a prospective buyer of an existing (resale) condominium unit receive?

Answers

Answer:

Governance Form.

Explanation:

The buyer has the right to request a copy of several documents, including the Governance Form. This form summarizes the board of directors and unit rights.

Fixed costs are $1300000 and the variable costs are 80% of the unit selling price. What is the break-even point in dollars?

Answers

Answer:

the break-even point in dollars is $6,500,000

Explanation:

The computation of the break even point in dollars is shown below;

As we know that

Break even point in dollars is

= Fixed cost ÷ contribution margin ratio

Since the variable cost is 80%, so the contrbibution margin is 20% so that the total selling price would be 100%

now

= $1,300,000 ÷ 20%

= $6,500,000

Hence, the break-even point in dollars is $6,500,000

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 5,700,000 1 4,300,000 2 4,800,000 3 5,300,000 4 6,700,000 5 7,400,000 6 8,200,000 All salaries are to be paid in a lump sum. The player has asked you as his agent to renegotiate the terms. He wants a $9.2 million signing bonus payable today and a contract value increase of $1,200,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the discount rate is 4.7 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)