The <u>most likely outcome</u> when a firm is thinking about adding a product to its product line is D. The new product can be advertised alongside existing products
<h3>What is product advertising?</h3>
Product advertising:
- Is a management effort geared towards creating a demand for a product.
- Promotes consumer awareness.
- Fosters consumer interest in the product.
- Encourages consumers to make purchase decisions quickly as they see the product.
Thus, most likely, adding a product to the product line will help the new product to be advertised alongside existing ones.
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<h3>Question Completion with Answer Options:</h3>
A. It will be difficult to manufacture the product.
B. The company will have to work hard to build up the brand.
C. The new product is certain to be accepted by the market.
D. The new product can be advertised alongside existing products.
E. It will take a long time for customers to feel loyal to the product.
Explanation:
The journal entries are shown below:
1. Building A/c Dr $176
Equipment A/c Dr $270
To Cash A/c $408
To Note payable A/c $38
(Being the building and the equipment is purchased for cash and note payable)
2. Cash A/c Dr $345
To Common stock $240 (120 shares × $2)
To Additional paid in capital A/c - Common stock A/c $105
(Being the common stock is issued for cash)
3. Retained earnings A/c Dr $145
To Dividend payable A/c $145
(Being the dividend is declared)
4. Short - term investment A/c Dr $7,616
To Cash A/c $7,616
(Being the short term investment is purchased for cash)
5. No journal entry is required
6. Cash A/c Dr $4,413
To Short - term investment A/c $4,413
(Being the short-term investment is purchased)
Answer:
Joint costs allocated to Product Y = $60,000
Explanation:
Given:
Particular Product Units Produced Sales
X 5,000 $70,000
Y 3,000 $30,000
<u>Z 2,000 $100,000</u>
<u>Total 10,000 </u>
Joint costs allocated to Product Y = (Total Joint costs × Y's total unit) / Total units produced
Joint costs allocated to Product Y = ($300,000 × 3,000) / 10,000
Joint costs allocated to Product Y = $90,000
Explanation:
For continuous compounding, we use the following formula

<u>Scenario 1 : </u>
FV = $ 90
N = 2 years
I = 6%
PV= ?



PV = $ 79.82
<u>Scenario 2:</u>


PV = $ 75.17
<u>Scenario 3:</u>


PV = $ 70.80