Which of the following is an example of physical capital in an economy?A. A cargo plane
B. A pilot
C. A traveler
D. A mechanic

Answers

Answer 1
Answer:

Answer:

A. A cargo plane

Explanation:

In Economics, factors of production are used for the manufacturing of goods and services in order to meet the unending needs or requirements of the consumers at a specific price and period of time. The four (4) factors of production are;

I. Land.

II. Labor.

III. Entrepreneurship.

IV. Capital.

Physical capital can be defined as any tangible, artificial goods which are typically used for the production of finished goods or services. Therefore, it comprises of building, computer, machinery or equipment, office utilities, cash, vehicles, etc.

Hence, a cargo plane is an example of physical capital in an economy because it is a tangible, man-made equipment used for the transportation of people or goods from one location to another.

Answer 2
Answer:

Final answer:

A cargo plane is an example of physical capital in an economy.

Explanation:

Physical capital in an economy refers to the assets and infrastructure used to produce goods and services. Among the options provided, the A. cargo plane is an example of physical capital. It is a tangible asset that is used to transport goods, contributing to the production process and economic activity.

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Evaluating strategies LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars.

Answers

Answer:

Instructions are below.

Explanation:

We weren't provided with enough information to answer the requirements. But, I will provide the formulas.

1) Contribution margin:

CM= selling price - unitary variable cost

2) contribution margin ratio:

contribution margin ratio= contribution margin / selling price

3) break-even point in units

Break-even point in units= fixed costs/ contribution margin per unit

4) break-even point in sales dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 3,000 meals. Amount Per Unit Sales revenue $ 18,000 $ 6.00 Costs of meals produced 13,500 4.50 Gross profit $ 4,500 $ 1.50 Administrative costs 2,100 0.70 Operating profit $ 2,400 $ 0.80 Fixed costs included in this income statement are $4,500 for meal production and $600 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.50 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. Required: a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

Answers

Answer:

See explanations below

Explanation:

Kind find attached solution. Please note that 3,300 units was used for the alternative.

The following data are taken from the financial statements of Marigold Company: 2022 2021 Average accounts receivable $539,000 $577,000 Net sales on account 5,605,600 5,308,400 Terms for all sales are 2/10, n/30. Compute for each year the accounts receivable turnover, accounts receivable was $572,000.

Answers

Answer:

2021 = 9.2 times

2022 = 10.4 times

Explanation:

Accounts receivable turnover measure the average times the company received their receivable, It measure the efficiency of the company regarding collection from customers. Turnover will be higher if company has low ratio of receivables to sales value.

                                                    2022         2021

Average accounts receivable $539,000    $577,000

Net sales on account              $5,605,600 $5,308,400

Accounts receivable turnover = Net Sales  / Average Receivable

2021

Accounts receivable turnover = $5,308,400  / $577,000

Accounts receivable turnover = 9.2 times

2021

Accounts receivable turnover = $5,605,600  / $539,000

Accounts receivable turnover = 10.4 times

Answer:

2022 accounts receivable turnover = 10.4 times

2021 accounts receivable turnover = 9.2 times

Explanation:

Accounts receivable turnover can be described as the number times it takes a company to collect its average accounts receivable within a specified accounting period, usually a year. It is used as a measure of efficiency of a company in collecting account receivables in a timely manner.

Accounts receivable turnover is therefore a ratio of net sales on account to the Average accounts receivable within a specified year. This can be stated as follows:

Accounts receivable turnover = Net sales on account/Average accounts receivable ………. (1)

Using equation (1), accounts receivable turnover for 2022 and 2021 can be calculated as follows:

2022 accounts receivable turnover = $5,605,600/$539,000 = 10.4 times

2021 accounts receivable turnover = $5,308,400/$577,000 = 9.2 times

The results imply that Marigold Company is more efficient in collecting account receivable in 2021 than 2022, because it takes fewer number of times in 2021, 9.2 times, than in 2022, 10.4 times.

why it is important to business administration student to study and know the basic principles of income taxation? ​

Answers

Although the benefit principle of taxes is founded on two notions, it is critical for business administration students to learn and understand the fundamental principles of income taxation. The first and most important point is that people who gain from services should pay for them. Second, taxation should be proportional to the amount of benefits or services received.

An income tax is generally a tax levied on persons or corporations (taxpayers) based on their earnings or profits (often referred to as taxable income). In most cases, income tax is calculated as the result of a tax rate multiplied by the taxable income.

Taxation rates may differ depending on the taxpayer's attributes and the source of income.

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PRINCIPAL OF INCOME TAXATION

The benefit principle of taxation is based on two ideas. The first and foremost is that those who benefit from services should be the ones who pay for them. Secondly, people should pay taxes in proportion to the amount of services or benefits they receive.

Explanation:

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The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow. The owner then used multiple regression analysis to predict gross revenue (y), in thousands of dollars, as a function of television advertising (x1), in thousands of dollars, and newspaper advertising (x2), in thousands of dollars. The estimated regression equation was ŷ = 83.2 + 2.29x1 + 1.30x2. (a) What is the gross revenue (in dollars) expected for a week when $4,000 is spent on television advertising (x1 = 4) and $1,500 is spent on newspaper advertising (x2 = 1.5)? (Round your answer to the nearest dollar.)

Answers

Answer:

Y = 83.2 + 2.29x1  + 1.30x2

Y = 83.2 + 2.29(4) + 1.30(1.5)

Y = 83.2 + 9.16 + 1.95

Y = 94.31(thousand)

Y = $94,310

The gross revenue is $94,310

Explanation:

In this case, the estimated regression equation has been given.  Since x1 is $4,000 and x2 is $1,500, then, we will substitute these values for x1  and x2 in the equation. The addition of all values after the substitution gives the gross revenue.

AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year consisted of 16,000 units of the company’s one product. These units cost $10 each. During the year, 66,000 units were purchased at a cost of $13 each and 67,000 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 8,000 units at $13.a. What would be the effect of this purchase on income before income taxes?
b. What would be the effect of this purchase on income before income taxes using FIFO method?

Answers

Answer:

1. Net income decreases by $3,000

2. The amount of net income would be remains the same.

Explanation:

1. Under LIFO method

(i) Before 8,000 units purchased:

sales = 67,000 units

Cost of goods sold = Quantity × Price

                                = (66,000 × $13) + (1,000 × $10)

                                = $858,000 + $10,000

                                 = $868,000

(ii) If 8,000 units purchased at $13 each then,

Cost of goods sold = Quantity × Price

                                 = 67,000 × $13

                                 = $871,000

As the cost of goods increases as a result there will be decrease in the net income before tax under LIFO method.

The amount of net income would be decreased by:

= $871,000  - $868,000

= $3,000

2. Under FIFO method:

(i) Before 8,000 units purchased:

sales = 67,000 units

Cost of goods sold = Quantity × Price

                                 = (16,000 × $10) + (51,000 × $13)

                                 = $160,000 + $663,000

                                 = $823,000

(ii) If 8,000 units purchased at $13 each then,

Cost of goods sold = Quantity × Price

                                = (16,000 × $10) + (51,000 × $13)

                                 = $160,000 + $663,000

                                 = $823,000

As there will be no change in the cost of goods sold, so, there will be no change in the net income before tax under FIFO method.

The amount of net income would be remains the same.

                     

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