Carolina's Hats Has the Following Sales, Payroll and Property Factors

question 98

Multiple Choice

Carolina's Hats has the following sales, payroll and property factors:
What is Carolina's Hats North and South Carolina apportionment factors if North Carolina uses an equally-weighted three-factor formula and South Carolina uses a double-weighted sales factor formula? (Round your answers to two decimal places)
$$\begin{array} { | l | c | c | } \hline & \text { North Carolina } & \text { South Carolna } \\\hline \text { Sales } & 75.03 \% & 22.51 \% \\\hline \text { Payroll } & 68.62 \% & 21.28 \% \\\hline \text { Property } & 78.45 \% & 14.56 \% \\\hline\end{array}$$

• A) North Carolina 74.03 percent, and South Carolina 19.45 percent.
• B) North Carolina 74.03 percent, and South Carolina 20.22 percent.
• C) North Carolina 74.28 percent, and South Carolina 19.45 percent.
• D)North Carolina 74.28 percent, and South Carolina 22.51 percent.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment.

Diseconomies Of Scale

Situations where a firm's costs per unit increase as the scale of production increases, typically due to inefficiencies that arise from becoming too large.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Diminishing Returns

A principle in economics that states as one input variable is incrementally increased, there comes a point when the rate of resultant output begins to decrease.