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2 years ago

2. Explain the four characteristics of the price system.

Business

1 answer:

goblinko [34]2 years ago

5 0

Answer:

1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.

2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.

3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.

4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.

Explanation:

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J Corporation has two divisions. Division A has a contribution margin of $79,300 and Division B has a contribution margin of $12

Allushta [10]

Answer:

Net income= $98,200

Explanation:

Giving the following information:

Division A:

The contribution margin of $79,300

Division B:

Contribution margin of $126,200.

The total traceable fixed costs are $72,400 and total common fixed costs are $34,900.

<u>To calculate the net operating income, we need to deduct from the combined contribution margin the fixed costs.</u>

<u></u>

Net income= (79,300 + 126,200) - 72,400 - 34,900

Net income= $98,200

7 0

2 years ago

Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $14,000

11111nata11111 [884]

Answer:

$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet

Explanation:

Current Assets: The current assets are those assets which are converted into cash within one year.

Examples - Accounts receivable, inventory, prepaid insurance, cash, etc.

The computation of the total current assets is shown below:

= Accounts receivable + Inventory + Prepaid insurance + Short term investment

= $14,000 + $40,000 + $3,650 + $30,800

= $88,450

The amount of prepaid insurance which is given in the question is for two years. We have to compute for one year so we divide the total amount by number of years

= $7,300 ÷ 2 years

= $3,650

6 0

3 years ago

Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three ac

poizon [28]

Answer:

$86.87

Explanation:

Calculation for what would be the overall margin on the order

Price of cake $500.54

Less Costs:Size related ($183.06)

($1.13 per guest × 162 guests)

Less Complexity-related ($130.56)

($43.52 per tier × 3 tiers)

Less Order-related ($61.44)

($61.44 per order × 1 order)

Less Cost of purchased decorations for cake ($38.61)

Customer margin $86.87

Therefore would be the overall margin on the order is $86.87

3 0

3 years ago

When the us dollar buys more japanese yen the us dollar has?

zvonat [6]

The dollar buys more yen<span> and the </span>dollar has<span> appreciated.</span>

8 0

3 years ago

Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 direct labor hours per unit. Compute the overhead cost

lora16 [44]

a) The computation of the single plantwide predetermined overhead rate for Tent Master is $6 per DLH ($252,000/42,000).

b) The computation of the overhead cost per unit for Pup and Pop-up Tents for Tent Master is computed as follows:

Pup Tents Pop-up Tents

Overhead cost $24 ($6 x 4) $18 ($6 x 3)

c) The computation of the product cost per unit for Pup and Pop-up Tents is as follows:

Per Unit Selling Direct Direct Overhead Product

Price Materials Labor per unit Cost / Unit

Pup tent $ 78 $ 20 $ 45 $24 $89

Pop-up tent 73 25 30 $18 $73

d) The computation of the gross profit per unit (selling price per unit minus the product cost per unit) of Pup and Pop-up Tents is as follows:

Per Unit Selling Direct Direct Overhead Product Gross Profit

Price Materials Labor per unit Cost / Unit (Loss) per unit

Pup tent $ 78 $ 20 $ 45 $24 $89 ($11) ($78 - $89)

Pop-up tent 73 25 30 $18 $73 $0 ($73 - $73)

<h3>What does a product cost?</h3>

The determination of the product cost includes the costs of direct materials, direct labor, and overhead. The overhead cost is allocated to each unit based on a predetermined overhead rate (budgeted overheads/budgeted usage) or using an activity-based costing technique.

<h3>Data and Calculations:</h3>

Budgeted overhead costs = $252,000

Budgeted direct labor hours = 42,000

<h3>Question Completion:</h3>

Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of overhead cost and 42,000 direct labor hours. Additional information follows:

Per Unit Selling Price Direct Materials Direct Labor DL Hours

Pup tent $ 78 $ 20 $ 45 4

Pop-up tent 73 25 30 3

<h3>Required: </h3>

1. Compute a single plantwide overhead rate assuming the company allocates overhead costs based on 42,000 direct labor hours.

2. Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 direct labor hours per unit. Compute the overhead cost per unit for each product.

3. Compute the product cost per unit for each product.

4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).

Learn more about calculating the predetermined overhead rates at brainly.com/question/26372929

4 0

2 years ago