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2 years ago

11

Marginal cost is equal to average total cost when a. average variable cost is falling. b. marginal cost is at its minimum. c. av

erage total cost is at its minimum. d. average fixed cost is rising.

1 answer:

atroni [7]2 years ago

3 0

Answer: C

Explanation: average total cost is at its minimum

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Steven, a marketing manager, wants to budget the advertising for a new product launch. He is trying to determine the amount of m

emmasim [6.3K]

Answer:

Economic feasibility

Explanation:

The cost and benefits including the capability analysis and non financial aspects that are worth considering are often referred to as feasibility study of the project. Furthermore, the study of the costs and benefits drawn from the project alone is known as economic feasibility of the project.

In the given scenario, the company is considering how much the advertising cost must be budgeted to drive maximum benefits which is cost benefit analysis and is economic feasibility studies.

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3 years ago

Asymmetric information occurs when A. everyone has the same information. B. people engaging in a transaction are uncertain about

melisa1 [442]

Answer:

Option (D) is correct.

Explanation:

Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.

Asymmetric information will result in two problems are as follows:

(i) Adverse selection

(ii) Moral hazard

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3 years ago

Tidwell Corporation was organized on January 1, 2014. It is authorized to issue 20,000 shares of 6%, $50 par value preferred sto

gladu [14]

Answer:

Tidwell Corporation

a. Journal Entries:

Jan. 10:

Debit Cash Account $280,000

Credit Common Stock $70,000

Credit APIC - Common Stock $210,000

To record the issue of 70,000 common stock shares at $4 per share.

Mar. 1:

Debit Cash Account $636,000

Credit Preferred Stock $600,000

Credit APIC -Preferred Stock $36,000

To record the issue of 12,000 preferred stock at $53 per share.

May 1:

Debit Cash Account $720,000

Credit Common Stock $120,000

Credit APIC - Common Stock $600,000

To record the issue of 120,000 common stock shares at $6 per share.

Sept. 1:

Debit Cash Account $25,000

Credit Common Stock $5,000

Credit APIC - Common sTock $20,000

To record the issue of 5,000 common stock shares at $5 per share.

Nov. 1:

Debit Cash Account $168,000

Credit Preferred Stock $150,000

Credit APIC - Preferred Stock $18,000

To record the issue of 3,000 preferred stock shares at $56 per share.

2. Common Stock Account

Date Account Titles Debit Credit

Jan. 10 Cash Account $70,000

May 1 Cash Account 120,000

Sept. 1 Cash Account 5,000

APIC - Common Stock Account

Date Account Titles Debit Credit

Jan. 10 Cash Account $210,000

May 1 Cash Account 600,000

Sept. 1 Cash Account 20,000

Preferred Stock Account

Date Account Titles Debit Credit

Mar. 1 Cash Account $600,000

Nov. 1 Cash Account 150,000

APIC - Preferred Stock Account

Date Account Titles Debit Credit

Mar. 1 Cash Account $36,000

Nov. 1 Cash Account 18,000

Explanation:

a) Data and Calculations:

Authorized preferred stock, 6% at $50 par value = 30,000 shares = $1,500,000

Authorized common stock, stated value of $1 per share = 500,000 shares = $500,000

Stock transactions:

Jan. 10 Issued 70,000 shares of common stock for cash at $4 per share (Cash $280,000, Common Stock $70,000, and APIC $210,000)

Mar. 1 Issued 12,000 shares of preferred stock for cash at $53 per share

(Cash $636,000, Preferred Stock $600,000, and APIC $36,000)

May 1 Issued 120,000 shares of common stock for cash at $6 per share.

(Cash $720,000, Common Stock $120,000, and APIC $600,000)

Sept. 1 Issued 5,000 shares of common stock for cash at $5 per share

(Cash $25,000, Common Stock $5,000, and APIC $20,000)

Nov. 1 Issued 3,000 shares of preferred stock for cash at $56 per share

(Cash $168,000, Preferred Stock $150,000, and APIC $18,000)

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3 years ago

$444,567 Revenue, $400,500 Expenses. Net Profit?

chubhunter [2.5K]

Answer:

44,067

Explanation:

4 0

3 years ago

Q 11.35: Felix Incorporated has just exchanged 1,250 shares of $65 par-value preferred stock for a parcel of land advertised for

Dvinal [7]

Answer:

Felix Incorporated

Exchange of Preferred Stock for Land:

Journal Entries:

Debit Land $90,000

Credit Preferred Stock $81,250

Credit Additional Paid-in Capital - Preferred Stock $8,750

To record the issue of 1,250 of $65 par-value preferred stock for land with a fair price of $90,000.

Explanation:

Felix Incorporated will debit Land with the fair price of $90,000 and Credit the Preferred Stock account with $81,250 (1,250 x $65) at par-value. The difference between the fair price of land and the preferred stock at par-value is credited to additional paid-in capital account for preferred stock. Felix Incorporated cannot take into account the current market value of the stock at $75 in its accounting records. The current share price of $75 is for the benefit of investors, and can only serve as basis for Felix Incorporated to decide transactions with potential investors.

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3 years ago