Answer:
Option B.
No, a binding price ceiling benefits only some buyers because not all are able to obtain the goods in the legal market.
Explanation:
A binding price ceiling occurs when the government sets a required price on a good or goods at a price below equilibrium. Since the government requires that prices not rise above the price, that price binds the market for that good. Because the government keeps the price artificially low, businesses will not produce enough of those goods to satisfy the market.
This results in an insufficient supply of those goods, creating a shortage in those goods, and with a shortage of goods, only some of the buyers will be able to obtain the goods in the legal market.
Therefore, the option that best suits the question is option, B. Not all buyers benefit from a binding price ceiling. A BINDING PRICE CEILING BENEFITS ONLY SOME BUYERS BECAUSE NOT ALL ARE ABLE TO OBTAIN THE GOOD IN THE LEGAL MARKET.
Total cost of 10000 snowboards
Per unit Total
Direct material 100 1000000
Direct Labor 30 300000
Variable overhead 45 450000
Fixed overhead 635000
Fixed selling and administrative costs 115000
Total cost of 10000 snowboards 2500000
Cost of one snowboard = Total cost of 10000 snowboards / Total number of snowboards
Cost of 1 snowboard $ 250
Thus, the cost of 1 snowboard = $ 250
Now, the selling price is set as = Total costs + 15 % on total costs
Selling price = $ 250 + (15 % × $ 250)
Selling price = $ 250 + $ 37.50
Selling price = $ 287.50 per snowboard
Explanation:
In the case of the complements goods, if the price of the soda rises, the demand would be decreased and the supply would rises. Since the soda and pizza are complementary goods so the impact of one good would be the same for another good also
Moreover, we also know that the price and the demand has an inverse relationship but the price and the supply has a direct relationship
Answer:
The net realizable value of the accounts receivable immediately after the writing-off the uncollectible is $26,900
Explanation:
The formula to compute the net realizable value of accounts receivable is:
Net realizable value = Balance of accounts receivable - Balance in the Allowance for Doubtful Accounts
= $30,600 - $3,700
= $26,900
The amount of uncollectible which is written off will not be deducted from the balance of accounts receivable as this amount is already included in Allowance for doubtful account.
