Explanation:
The journal entries are as follows
On January 1, 2012
Cash $20,000
To Note payable $20,000
(Being the issuance of the note payable is recorded)
On January 31, 2012
Interest expense $116.67
Note payable $362.25
To Cash $478.92
(Being the first monthly payment is recorded)
The interest expense is as follows
= Borrowed amount × monthly interest rate
= $20,000 × 0.5833%
= $116.67
The price of crude oil during the period 2000-2010 can be approximated by P(t) = 6t + 18 dollars per barrel (0 ≤ t ≤ 10) in year t, where t = 0 represents 2000. Saudi Arabia's crude oil production over the same period can be approximated by Q(t) = −0.036t2 + 0.62t + 8 million barrels per day (0 ≤ t ≤ 10). † Use these models to estimate Saudi Arabia's daily oil revenue and also its rate of change in 2006.
Saudi Arabia's daily oil revenue in 2006 can be estimated as $501.12 million. To find this, we substituted the value of t = 6 in both the price and quantity functions, then multiplied them together. The rate of change of revenue requires calculus and it's not typically a part of high school mathematics.
Explanation:To estimate Saudi Arabia's daily oil revenue in 2006, we need to substitute the value of t = 6 (since 2006 is six years from the year 2000 represented by t=0) into both equations. So,
To calculate the price of oil in 2006, substitute t = 6 in P(t) = 6t + 18, giving P(6) = 6*6 + 18 = $54 per barrel.For the quantity of oil, substitute t = 6 in Q(t) = -0.036t² + 0.62t + 8, yielding Q(6) = -0.036*6² + 0.62*6 + 8 ≈ 9.28 million barrels per day.The daily revenue is the quantity times the price: 9.28 * 54 ≈ $501.12 million.The rate of revenue change could be calculated by differentiating the revenue function respect to time and substituting t=6 into the derivative. Here, it's important to understand that the derivative of a function represents the rate of change of that function. However, this involves calculus which may out of high school course.Learn more about Rate of Change here:https://brainly.com/question/20816247
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There are 100 apartment complexes (worth ~$350K annually in potential contracts), that the Go Green recycling company has identified which don’t offer recycling for their tenants. The city just passed a law requiring large apartment complexes to recycle. Go Green has contacted apartment complex owners offering their services with mixed results. Which one of the criteria for defining a potential market is missing from this example?
Answer:
An organisation has the ability to pay for the service.
Explanation:
In this scenario Go Green recycling company has identified a need by getting information on complex owners that do not provide recycling services to their tenants.
Legislation has also been passed requiring large complex owners to provide recycling services for tenants.
However they did not determine if the organisations have the ability to pay for services being offered.
So they will get mixed reactions when they approach complex owners.
You are evaluating the purchase of Cellars, Inc. common stock that just paid a dividend of $1.80. You expect the dividend to grow at a rate of 12% for the next three years. You plan to hold the stock for three years and then sell it. You estimate that a required rate of return of 17.5% will be adequate compensation for this investment. Calculate the present value of the expected dividends.
A) $4.91
B) $5.40
C) $9.80
D) $6.80
Answer:
A) $4.91
Explanation:
The computation of the present value of the expected dividends is shown below:
Particulars Dividend Discount factor Present value
Dividend in year 1 $2.02 0.851 $1.72
Dividend in year 2 $2.26 0.724 $1.64
Dividend in year 3 $2.53 0.616 $1.56
Present value $4.91
The value of the dividend is come after considering the growth rate of 12%
Compared to other groups, the _______________ generational cohort is more likely to complain, need special attention, and take time browsing before making a purchase decision.
Answer:
Seniors
Explanation:
The seniors generational cohorts refers to the generation that preceded the generation of baby boomers classified as those individuals who were born between 1946 and 1964.
The seniors generation is habitually complaining, something inherited from their witnessing times of wars and periods of uncertainties and financial distress.
This generation commands respect, special attention and at the same time are more miserly in their spending habits.
Also a common observation being, these individuals are not well familiar and adept with technological advancements such as gadgets, systems and modern day appliances in the sense they require more time to get used to them.
To make your business messages more effective, revise for vigor and directness. You can strengthen your writing by unburying verbs, controlling exuberance, and choosing precise words. Which of the sentences contain buried verbs? Check all that apply.
a.The entire team prepared the proposal Paul submitted on Wednesday.
b.Please analyze last month's sales trends.
d.Give consideration to the economic climate.
c.The new filing system will increase efficiency.
Answer:
The correct answer is letter "D": Give consideration to the economic climate.
Explanation:
Buried verbs express actions using verb redundantly. Most of the time they are composed of two verbs unnecessarily jointed when only one of them could give meaning to the segment. The two words jointed become a noun. Buried verbs make sentences wordy and do not help in improving the clarity of the message. Thus, the sentence:
Give consideration to the economic climate.
Should only be:
Consider the economic climate.
Which of the following managerial skills do supervisors and other managers rely on when they need to assign tasks and explain job responsibilities, task objectives, and performance expectations?
A. Envisioning change
B. Taking risks for change
C. Clarifying roles
D. Monitoring operations
Answer:
The correct option is C
Explanation:
Role clarification is designed to help team members and team leader develop clarity about the roles and responsibility of the team.
Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Thompson paid $732,500 for the land and building together. At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400. Land B was acquired on October 2, 2019, in exchange for 2,200 newly issued shares of Thompson’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $17 per share. During October 2019, Thompson paid
Answer:
He will not pay any depreciation during October.
Explanation:
Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.
Depreciation for Building A would be zero for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
The depreciation expense will be computed on 1st of November.
Good cash management is an essential job of the financial manager. You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following:
JAN $5,000
FEB -$30,000
MAR $20,000
APRIL -$35,000
MAY $25,000
JUNE -$10,000
JULY $25,000
AUG $25,000
SEPT -$30,000
OCT $15,000
NOV $15,000
DEC $25,000
You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month.
1. Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.
2. Do you believe that the company needs outside financing?
3. What is the minimum line of credit to request from a lender?
Do you think you are a good candidate for the line of credit? Why?
Answer:
Explanation:
The answer to the above question is given in the attached document.
Answer:
The prepared cash flow and external funding summary are found in the attached.
I believe the company needs external funding in February-June as well as in September.
The company is a good candidate for line of credit as it has positive cash flows with which it could pay back any external financing taken.
The minimum line of credit required is $40,000 as shown by cash flow summary in April.
Explanation:
Find attached for details
Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Express believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,112,000.
What is the company’s break-even point in total sales dollars? At the break-even point, how much of the company’s sales are provided by each type of service?
Answer:
Break even sales = $43,706,666.7
Sale of small boxes and mail pouches = $34,965,333.4
Sales from non standardized boxes = $6,993,066.68
Explanation:
The computation of given question is below:-
Sales
= (0.8 × 0.20)Sales + (0.20 × 0.70)Sales = $13,112,000
0 .16 × sales + 0.14 × sales = $13,112,000
0.30 × Sales = $13,112,000
Break even sales = $43,706,666.7
Sale of small boxes and mail pouches
= $43,706,666.7 × 0.80
= $34,965,333.4
Sales from non standardized boxes
= $34,965,333.4 × 0.20
= $6,993,066.68
The following selected account balances are provided for Delray Mfg. Sales $ 1,165,000 Raw materials inventory, beginning 35,000 Work in process inventory, beginning 58,500 Finished goods inventory, beginning 65,600 Raw materials purchases 184,800 Direct labor 249,000 Factory supplies used (indirect materials) 16,000 Indirect labor 48,000 Repairs—Factory equipment 5,250 Rent cost of factory building 52,000 Advertising expense 95,000 General and administrative expenses 130,000 Raw materials inventory, ending 40,100 Work in process inventory, ending 46,400 Finished goods inventory, ending 72,700 Prepare its schedule of cost of goods manufactured for the current year ended December 31.
Answer:
Cost of goods manufactured = $562,050
Explanation:
Delray Manufacturing
Schedule of cost of goods manufactured
For the current year ended December 31
Beginning Raw materials inventory $35,000
Add: Raw materials purchases $184,800
Raw materials available for sale $219,800
Less: Ending Raw materials inventory $(40,100)
Direct materials used = $179,700
Direct labor $249,000
Primary cost $428,700
Add: Factory Overhead
Factory supplies used $16,000
Indirect labor 48,000
Repairs—Factory equipment 5,250
Rent cost of factory building 52,000
Total factory overhead cost $121,250
Total manufacturing cost $549,950
Add: Beginning work-in-process $58,500
Less: Ending work-in-process $(46,400)
Cost of goods manufactured $562,050
During its first year of operations, Silverman Company paid $19,000 for direct materials and $10,500 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,500 while general, selling, and administrative expenses totaled $5,000. The company produced 6,500 units and sold 4,000 units at a price of $8.50 a unit.What is the amount of finished goods inventory on the balance sheet at year-end?
Answer:
$15000
Explanation:
DM + DL + Overhead = Total manufacturing cost
where, DM = Direct Material and DL = Direct Labor
(19000 + 10500 + 9500)/ 6500 = 6
The cost of goods manufactured can be calculated by adding direct labor costs @ $10500, direct material costs @ $19000 and overhead costs @ $9500 and dividing it by 6500, we get $6.
Now, 4000 units has been sold so 2500 units are in ending inventory. The total amount in ending inventor is "
2500*6 = 15000
Answer:
The inventory value in the balance sheet is $ 15,000
Explanation:
Computation of per unit cost of production
Direct materials $ 19,000
Direct Labor $ 10,500
Production facilities related cost $ 9,500
Total cost of production $ 39,000
Units produced 6,500 units
Pr]oduction cost per unit $ 6 per unit
Units sold 4,000 units
Units in hand ( 6,500 produced - 4,000 sold) 2,500 units
Inventory value 2,500 units on hand * $ 6 per unit $ 15,000
Susan, a salesperson for a clothing company, always encourages her customers to be candid with her and requests them to be honest about the services they do not find satisfactory. In this scenario, Susan is:
Answer:
Susan encourages criticism.
Explanation:
In business, critical judgments are necessary for one to be able to improve and meet up to standards. Critical judgements might either be positive or negative responses.
Critics are accepted and significant because the quality of assessments by the critic can make one come up with better ways to achieve goals or meet customers demands. A good critic should have evidences to back up his or her claim. It's not the job of the critic to either be right or wrong but it's his job to convey his or her opinion on certain issues clearly.
Answer:
Is encouraging critical encounters.
Explanation:
Susan by encouraging her customers to give honest feedback on services they do not find satisfactory is encouraging critical encounters.
Customer satisfaction is a critical success factors for a business and when candid opinion of a business's performance with regards to service is received, it gives pointer to critical areas the business can improve to vecome more successful.
Other means of getting customer feedback include the Net Promoter Score and Customer Satisfaction survey.
When Sunshine Inc., a cosmetics manufacturer, introduced an additional line of perfumes, the response from its existing customers was good. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.Select one:a. market developmentb. product developmentc. market diversificationd. product differentiatione. market penetration
Answer:
B. Product development
Explanation:
A product development strategy is used when an existing company, with an existing customer base, tries to grow by introducing new products and/or services that target its customer base. This strategy entails more risk than market penetration but similar risks that market development.
The company can extend its product range by:
Research and Development investment, commonly used by tech companies like Apple who extend their product range constantly.
Buying the rights to produce products and services originally developed by other companies.
-Investing in the R&D of additional products, like when Microsoft developed Xbox One X.
-Getting the rights to produce someone else's product, like when Dinsey bought Marvell CU.
-Acquiring a popular product and rebranding it as its own product, like when google bought Picassa and launched Google Photos.
-Cooperating with other companies to develop products and services (shared ownership), which is very common in tech industries.
In the case of a negative shock to aggregate demand, the central bank should: increase the rate of growth of the money supply to restore spending growth. decrease the rate of growth of the money supply to control inflation. do nothing. decrease the rate of growth of the price level to keep real growth high.
Answer: increase the rate of growth of the money supply to restore spending growth.
Explanation:an increase in money supply growth. If the Federal Reserve offsets a negative shock to aggregate demand with increased money growth: both inflation and real GDP growth will rise.
Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,217 Sale price each $1,700 Total labor hours 46,672 Wage rate $12 /hour Total materials $60,000 Total energy $4,000 Calculate the productivity in sales revenue/labor expense. (Round your answer to 2 decimal places.) Productivity
Answer:
3.69
Explanation:
We know,
The productivity in sales revenue/labor expense = [tex]\frac{sales revenue}{labor expense}[/tex]
Given,
Sales revenue = Units sold × Sale price per unit
Sales revenue = 1,217 units × $1,700
Sales revenue = $2,068,900
labor expense = Total labor hours × wage rate per hour
labor expense = 46,672 × $12
labor expense = $560,064
Putting the values into the formula, We can get,
The productivity in sales revenue/labor expense = [tex]\frac{2,068,900}{560,064}[/tex]
The productivity in sales revenue/labor expense = 3.69
The following problem refers to a closed Leontief model. A closed model for an economy identifies government, the profit sector, the nonprofit sector, and households as its industries. Each unit of government output requires 0.3 unit of government input, 0.2 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.3 unit of households input. Each unit of profit sector output requires 0.2 unit of government input, 0.3 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.4 unit of households input. Each unit of nonprofit sector output requires 0.1 unit of government input, 0.1 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.6 unit of households input. Each unit of households output requires 0.05 unit of government input, 0.1 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.75 unit of households input. (a) Write the technology matrix T for this closed model of the economy.
Answer:
Detailed solution is given in the diagram attached.
In a Leontief model, the technology matrix shows the needed input from all sectors for each unit of output. It is created by putting the input requirement for each industry onto rows and the sectors themselves onto columns.
Explanation:The technology matrix, T, for this closed Leontief model of an economy, can be created by placing the input requirement of each sector for producing one unit output onto rows, and sectors themselves onto columns. The ordering of the rows and columns in the technology matrix would be Government, Profit, Non-Profit, and Household sectors. Therefore, matrix T can be written as:
T = [ [ 0.3, 0.2, 0.2, 0.3 ], [ 0.2, 0.3, 0.1, 0.4 ], [ 0.1, 0.1, 0.2, 0.6 ], [ 0.05, 0.1, 0.1, 0.75 ] ]
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Which statement is NOT true about the food industry and their lobbyists' influence on government legislation? They influence favorable legislature for the food manufacturers and producers. That no government agency says to the American people to "eat less". Promotes comsumption of fresh fruits and vegetable and reducing consumption from refined grain products. Encourages the government to pass favorable legislation for the food industry.
Answer:
The answer is C.
Explanation:
Just as almost every industry, American Food Industry also has lobbyists who work to influence the politicians and legislators and control the legislations in a way that is profitable for the industry.
Among the given options, A and D are true about the food industry and their lobbyists' influence, they do influence favorable legislature for the industry.
B is also true because telling people to eat less is not profitable for the food industry.
Option C, promoting consumption of fresh fruits and vegetables is not a true statement regarding the food industry and their lobbyists.
I hope this answer helps.
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. In year one, the basket costs $8.00.In year two, the price of the same basket is $7.00.
From year one to year two, there is ____ at an annual rate of ____.
In year one, $40.00 will buy ____ baskets, and in year two, $40.00 will buy ____ baskets.
This example illustrates that, as the price level falls, the value of money ____.
Answer:
Deflation; 12.50%
5; 5.71
Increases
Explanation:
The percentage change in the basket cost is:
[tex]P = \frac{7.00-8.00}{8.00}=-0.125 = -12.50\%[/tex]
A negative change in cost means that there was a deflation.
From year one to year two, there is deflation at an annual rate of 12.50%.
The number of baskets that could be bought in years one and two are:
[tex]n_1 = \frac{40}{8} =5\\n_2 = \frac{40}{7}=5.71[/tex]
In year one, $40.00 will buy 5 baskets, and in year two, $40.00 will buy 5.71 baskets.
This example illustrates that, as the price level falls, the value of money increases.
The price level decreases from year one to year two at an annual rate of 12.5%, and the value of money increases as a result.
Explanation:From year one to year two, there is a decrease in the price level by $1.00 at an annual rate of 12.5%. In year one, $40.00 will buy 5 baskets, and in year two, $40.00 will buy 5.71 baskets. This example illustrates that, as the price level falls, the value of money increases.
Government Policies: Governments and central banks may implement policies to stabilize the price level and control inflation. For example, they may use monetary policy (such as adjusting interest rates) or fiscal policy (such as taxation and government spending) to influence economic conditions.
Impacts on Businesses: Changes in the price level can affect businesses in various ways. For example, inflation may increase production costs, while deflation may lead to lower revenue and potentially reduced profitability.
International Trade: Changes in the price level can impact a country's competitiveness in international trade. High inflation may erode a country's competitiveness, while deflation may make its exports more attractive.
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Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a long-term investment for $500,000 cash on July 1. JBI Corp. paid $5,000 in total cash dividends on November 1 and reported net income of $100,000 for the year. (1) - (3) Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income.
Rowan Co.'s entries to record the purchase, receipt of dividends, and year-end adjustment for its shareholding in JBI Corp. would be: Purchase, Debit: Long-Term Investments $500,000, Credit: Cash $500,000; Dividends, Debit: Cash $2,000, Credit: Dividend Income $2,000; Year-End Adjustment, Debit: Investment in JBI Corp. $40,000, Credit: Investment Revenue $40,000.
Explanation:First, Rowan Co. would record the purchase of the shares from JBI Corp. by debiting the long-term investment account and crediting cash for the purchase amount of $500,000. The entry would appear as such: Debit: Long-Term Investments $500,000, Credit: Cash $500,000.
Second, when Rowan Co. receives its share of the dividends from JBI, it would debit cash and credit dividend income for its corresponding 40% share of $5,000 (which is $2,000). The entry would be: Debit: Cash $2,000, Credit: Dividend Income $2,000.
Finally, for the year-end adjustment, Rowan Co. would recognize its 40% share of JBI Corp.'s net income of $100,000. This is not actual cash received, but an increase in the investment's value. They would debit Investment in JBI Corp. for $40,000, Credit: Investment Revenue $40,000. This reflects their share of the earnings.
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True or False: Beta testing is the act of implementing a new idea, system or product on a large scale, controlled environment within the entire organization.
Answer: True.
Explanation: Beta testing is the act of implementing a new idea, system, or product with a select group of people or processes in as controlled an environment as possible. ... The purpose of beta testing is to reduce the risks and costs inherent in launching an unproven product or system to a widespread audience.
The correct answer for this is : False
Beta testing is an opportunity for real users to use a product in a production environment to uncover any bugs or issues before a general release. Beta testing is the final round of testing before releasing a product to a wide audience.
What is Beta Testing?Beta testing is a type of user acceptance testing where the product team gives a nearly finished product to a group of target users to evaluate product performance in the real world.
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Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power.
Answer:
This is called an expert source of power
Explanation:
An expert power is a perception or belief that an individual has some or possesses relevant expertise or special knowledge in a particular area that others do not have. In a business setting, when a buyer has access to knowledge, information and skills desired by the supplier, it is known as an expert source of power.
As discussed in the textbook, which of the following is true in China when an outsider allegedly commits or actually commits fraud in the course of business dealings with Chinese firms?
Answer:
Outsiders have been fined heavily and refused permission to enter into more agreements with Chinese firms.
Explanation:
Chinese laws and regulations governing commercial conduct generally pair prohibitions of specific practices with prescriptions of applicable administrative penalties. Common penalties to any outsider or outsider companies that engages in fraud in china include warnings, confiscation of illegal monetary gains, heavy fines, the temporary suspension of business and ability to conduct business with any Chinese firm, or permanent revocation of the company's business license to conduct business with any Chinese firm. Some penalties are special to particular sectors or professions, such as the suspension or revocation of individual licences to trade securities to conduct business transactions with any Chinese firm.
Assume that you have taken over management of a small concession stand on a local beach for the summer. Your main product is iced water, popular on hot days. You've been selling 400 cups per day at 50 cents each. The cups cost 5 cents each. One of your customers suggests that you cut the price to 40 cents to make more money. For the customer to be correct, how much must your sales increase?
Answer:
For the customer to be correct, I must increase my sales by 115, from 400 cups to 515 cups.
Explanation:
Considering that the cost of each cup of iced water has a cost of 5 cents, and that its sale price is 50 cents, we can say that each cup has a net profit of 45 cents. At the same time, at that price about 400 cups are sold per day, that is, a profit of $ 180 per day.
If the consumer were ignored regarding lowering the price of each cup to $ 0.40, a benefit of $ 0.35 would be obtained for each sale. Therefore, to maintain the same profit money, 515 should be sold instead of 400 cups per day (180 / 0.35 = 514.2), which would report about $ 180.25 in profit.
The contrast error is committed when the rates rate people:
a) relative to performers in other organizations rather than performers in their own organization
b) relative to the previous year's performance rating
c) relative to the company's financial performance
d) relative to others instead of against performance standards
Answer:
d) relative to others instead of against performance standards.
Explanation:
Contrast error is one that occurs during performance rating where a person is not rated objectively, but against previous people who performed good or badly.
The person's ratings is affected negatively or positively.
A person that performs well subconsciously sets a benchmark in the mind of the rater, and he now rates future participants based on this benchmark and not on performance standards that have been set.
Is Dropbox profitable as of June 2010? Are you optimistic about its chances? How does your estimation of Dropbox’s current profitableness influence your rating of the venture’s chances?
Answer: yes and am optimistic about its chances.
Explanation: in the first place this question is incomplete, i saw the full question online.
Let me say that Dropbox will be profitable as of June 2010 and I’m optimistic about its chances because Houston had invented a good merchandise and selling scheme. he was able to concentrate on the growth of Dropbox and utilize the turning market to his advantage. As IDC projected an one-year growing of 28 % for this market to $ 2. 5 billion Dollar in 2014 I assume that this market has a large turning possible and Dropbox will be profitable in the coming old ages due to this growing rate.
Dropbox was not profitable in June 2010, but its future profitability depended on factors like scaling, monetization, and cost control. Optimism about Dropbox's chances would be influenced by a belief in its growth strategy and potential for future profitability.
Explanation:As of June 2010, Dropbox was not profitable. It had revenue of $46.7 million but incurred a net loss of $5.7 million. The company was still in the early stages of growth and focused on acquiring more users and expanding its product offering.
Being unprofitable at that time does not necessarily indicate a lack of potential for future profitability. Dropbox had a strong user base and a unique product that filled a need in the market. The company's profit potential would depend on its ability to scale, monetize its user base, and control costs.
As an investor or analyst, one could be optimistic about Dropbox's chances if they believed that the company had a solid growth strategy and the potential to become profitable in the future. However, it is important to consider various factors beyond just profitability, such as market dynamics, competition, and management team.
Iz, Lauren, Odd, and Ralph started a T‑shirt company. They can produce any number of T‑shirts at a cost of $ 2 per T‑shirt, both marginal and average. They are the only producers of T‑shirts. As monopolists, they charge $ 20 per T‑shirt and obtain total profits of $ 10,000 . Now assume there are creative differences and they split the company in two. Lauren and Ralph join together and compete against Iz and Odd. If they compete on quantity, each company would produce 50 T‑shirts and charge $ 12 a T‑shirt. For technical reasons, assume that the quantity demanded is greater than zero for all prices greater than $0. If, however, Ralph and Lauren compete directly against Iz and Odd in prices, the market price for T‑shirts will be
Ralph and Lauren compete directly against Iz and Odd in prices, the market price for T‑shirts will be $2.
Explanation:
Market price falls to marginal cost when the firms compete against each other. Thus, in this case, the market price for the T-shirt will be $2.As, the price is equal to marginal cost as per the given information, the firms profit will lead to 0. there will be no economic profit.The given type of differentiation is known to be as the product differentiation.The basic reason to put the iguana on the t-shirts is to enhance the profitability.sample of 17001700 computer chips revealed that 51Q% of the chips do not fail in the first 10001000 hours of their use. The company's promotional literature states that 48H% of the chips do not fail in the first 10001000 hours of their use. The quality control manager wants to test the claim that the actual percentage that do not fail is different from the stated percentage. Determine the decision rule for rejecting the null hypothesis, H0H0, at the 0.010.01 level.
Answer:
The decision rule for rejecting H0 is if the test statistic falls outside the region bounded by the critical values.
Explanation:
Null hypothesis: The actual percentage that do not fail is the same as the stated percentage.
Alternate hypothesis: The actual percentage that do not fail is different from the stated percentage.
Test statistic (z) = (p' - p) ÷ sqrt[p(1-p) ÷ n]
p' is sample proportion = 0.51
p is population proportion = 0.48
n = 1700
z = (0.51 - 0.48) ÷ sqrt[0.48(1-0.48) ÷ 1700] = 0.03 ÷ 0.012 = 2.5
The test is a two-tailed test. At 0.01 significance level, the critical values are -2.576 and 2.576
Decision rule:
Reject H0 (null hypothesis) if the test statistic falls outside the region bounded by the critical values -2.576 and 2.576.
A state tobacco sales tax causes the demand curve for a particular brand of cigars to shift from D1 to D2. The tax is assessed at the point of sale as a tax on buyers. Use the area tool to draw the three-cornered area representing the producer surplus after the tax. To refer to the graphing tutorial for this question type, please click
Answer:
Demand curve shifts to the left due to sales tax. Producer surplus will decrease. Please see attached graph
Explanation:
The sales tax on the cigar caused the Demand curve to shift from D1 to D2 (as shown on the graph). A sales tax will cause the price of the cigar to rise (P1 to P2 on the graph); and ultimately a decrease in quantity demanded will occur (Q1 to Q2 on the graph). This, however, increases revenue collected by the government (B on the graph).
The producer surplus is shown by the shaded area (labelled A on the graph). “Producer surplus is the difference between how much a person would be willing to accept for given quantity of a good versus how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market” (Chappelow, 2019). Producer surplus will decrease as some of it goes to the government.
A state tobacco sales tax shifts the demand curve from D1 to D2, decreasing the demand for cigars. This decrease in demand, combined with the tax being assessed at the point of sale, reduces the producer surplus, evidenced by a smaller area above the supply curve and below the new price level.
Explanation:In normal circumstances, the producer surplus is the difference between the actual price a producer receives and the minimum amount they would be willing to accept, depicted as the area above the supply curve and below the price level. However, when a tobacco sales tax is introduced, this decreases the demand for cigars and shifts the demand curve from D1 to D2. The amount the producers receive for each unit sold decreases, as the tax is applied at the point of sale. Consequently, producer surplus diminishes. This can be graphically represented by a smaller area above the supply curve and below the new price level (after the tax).
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An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions.
1. A $195 refund to a customer for faulty merchandise was debited to Sales Revenue $195 and credited to Cash $195.
2. A $180 credit purchase of supplies was debited to Inventory $180 and credited to Cash $180.
3. A $215 sales discount was debited to Sales Revenue.
4. A cash payment of $20 for freight on merchandise purchases was debited to Freight-Out $200 and credited to Cash $200.
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.
Answer:
The Journal entries are as follows:
(i) Sales Returns and allowance A/c Dr. $195
To sales revenue $195
(To record the correct entry for faulty merchandise)
(ii) Supplies A/c Dr. $180
Cash A/c Dr. $180
To Account Payable A/c $180
To Merchandise Inventory A/c $180
(To record the correct entry for the purchase of supplies)
(iii) Sales Discount A/c Dr. $215
To Sales Revenue $215
(To record the sales discount)
(iv) Inventory A/c Dr. $20
Cash A/c Dr. $180
To Freight -Out $200
(To record the freight on merchandise purchases)
For a good that is a necessity, a. quantity demanded tends to respond substantially to a change in price. b. demand tends to be inelastic. c. the law of demand does not apply.
Answer:
The correct answer is letter "B": demand tends to be inelastic.
Explanation:
Inelasticity is a characteristic that goods and services have by which their demand does not change in front of fluctuations in price. Consumer staples are considered inelastic goods since people need them to cover basic needs.
Inelasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is lower than one (1) the demand for that good or service is inelastic.