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Question: Willie Lohmann travels from city to city in the conduct of his business. Every other year he buys a used car for about $15,000. The dealer allows about $8000 as a trade-in allowance, with the result that the salesman spends $7000 every other year for a car. Willie keeps accurate records, which show that all other expenses on his car amount to 32.3c per mile for each mile he drives. Willie's employer has two plans by which salesmen are reimbursed for their car expenses:
A. Willie will receive all his operating expenses, and in addition will receive $3500 each year for the decline in value of the automobile.
B. Willie will receive 52c per mile but no operating expenses and no depreciation allowance. If Willie travels 18,000 miles per year, which method of computation gives him the larger reimbursement? At what annual mileage do the two methods give the same reimbursement?
Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the cartel supply? How much profit will the cartel earn?
However, she's an inventor, not a businessperson. Explain to her how she should set the price for the eye-color treatment in order to maximize her profits.
The estimated market demand of a commodity X is given as Q=70-3.5P-0.6M+4Pz, where Q=Estimated units of X demanded, P=Price of the goods, M= Money income and Pz= Price of related goods.
explain in words, and use a graph to illustrate, how a Monopoly decides how much to change and how much to produce. Include Marginal Cost, Marginal Revenue, Demand, Average Total Cost, and Profit. Assume the Monopoly is a Natural Monopoly and draw..
Examine the costs of production for Amazon Inc. Describe market structure for this firm and analyze how this affects the firm's ability to influence the market.
You are a Custom Home Builder and was hit hard by the economic downfall of 2008 in the housing market. You have a 100-acre subdivision with $19,000 a month payments on a land and development loan of$1.8 million.
Assume that you became president of small theater company. Your playhouse has the 120 seats and small stage. The actors have national reputations, and demand for tickets is enormous relative to number of seats available
Would you put £40,000 into a project which pays back nothing in the first year but then brings annual net returns of £12,000 from the end of year 2.
Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. TERMS: A. Prepaid Expenses
Is it to an employee's advantage to enjoy the lower turnover rates that unionization seems to include? provide specific example.
Which of the following events will tend to increase net exports of the United States?
Show where your estimate falls on the normal distribution provided. Is the coefficient sufficiently different from zero? Explain.
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