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1 year ago

What is the space between the buyer’s reservation price and the seller’s reservation price called?

Business

1 answer:

dimulka [17.4K]1 year ago

3 0

The space between the buyer’s reservation price and the seller’s reservation price is called the Total surplus.

What is reservation price for buyer?

A reserve price or reservation price is a word frequently used in auctions and refers to the lowest amount a seller will accept as a successful bid. An alternate, less well-known definition is the highest price a customer will pay for a good or service.

What is producers reservation price?

The minimal price that buyers and sellers are ready to accept in order to buy or sell a good is known as the reservation price. It is the highest price a potential buyer or consumer is willing to pay for a good; for a seller or producer, it is the lowest price they are willing to accept.

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Valley Technology had Net Income for 2021 of $9,600,000. The firm invested $5,000,000 in manufacturing equipment during 2020 but

suter [353]

If Valley Technology had Net Income for 2021 of $9,600,000. The Net Cash Flow in 2021 is:$5,600,000.

<h3>Net cash flow</h3><h3>Cash Flow from Operating Activities</h3>

Valley Technology Statement of Cash Flows For the year ended 2021

Cash Flow from Operating Activities:

Net Income $9,600,000

Add Depreciation Expense $1,000,000

($5,000,000/5)

Net Cash provided (used) by operating activities: $10,600,000

Cash Flow from Investing Activities:

Purchase of manufacturing equipment -$5,000,000

Net Cash provided (used) in Investing activities -$5,000,000

Cash Flow from Financing Activities:$0

Net cash flow in 2021 $5,600,000

Therefore If Valley Technology had Net Income for 2021 of $9,600,000. The Net Cash Flow in 2021 is:$5,600,000

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3 0

1 year ago

A company can choose to use FIFO inventory costing methods for the financial statement and can elect to use either LIFO or FIFO

Oduvanchick [21]

Answer:

A. True.

Explanation:

Companies can and often do use different costing methods for financial reporting and tax reporting. The only exception is when LIFO is used for tax reporting; in this case the IRS requires that it also be used in financial statements.

LIFO assigns the highest amount to cost of goods sold - yielding the lowest gross profits and net income , which also yields a temporary tax advantage by postponing payment of some income tax.

8 0

2 years ago

Anthony currently earns $25 an hour and works 40 hours a week. When his boss offers to pay him $29 per hour, Anthony decides to

timofeeve [1]

Answer:

substitution and income effects will counteract each other totally

Explanation:

A labor supply curve is an economic analysis tool that shows the number or workers that are available to work or that can work at various wage rates.

The labor supply curve can either be bending backwards or sloping downwards or upward curving but it shows the relationship between labour and wage rates.

A labor supply curve can be affected by factors such as population, changes in social behaviour, opportunities in other markets, among other things.

From the above question, it is seen that a change in wage rate for Anthony from $25 to $29 does not affect his work hours positively of negatively. His work hours is the same despite the increase in hourly wage.

The effect of the Anthony sticking to 40 hours of work despite an increase in wage, which could have served as some motivation for him to put in more hours is his labor curve remains same. An increase in wage has done noting to affect the number of hours he works and as such his income vs work rate counters each other.

Cheers.

8 0

2 years ago

Kirkland sells season tickets for six events at a price of $48. For the 2013 season, 2,700 season tickets were sold.

alexira [117]

Answer:

a. Assets = Liabilities + Stockholders' Equity = $129,600

b. Debit Unearned ticket revenue for $129,600, and Credit Total revenue for $129,600.

c. It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.

Explanation:

a. Use the horizontal model to show the effect of the sale of the season tickets. (Enter decreases to account balances with a minus sign.)

Note: See the attached excel file for the horizontal model showing the effect of the sale of the season tickets.

In the attached excel file, the following calculation is done:

Cash = Unearned ticket revenue = Price per season ticket * Number of season tickets sold = $48 * 2,700 = $129,600

Since Stockholders' Equity is equal to zero in the attached excel file, we have:

Assets = Liabilities + Stockholders' Equity = $129,600

b. Use the horizontal model (or write the journal entry) to show the effect of presenting an event.

The journal entry will look as follows:

<u>General Journal Debit ($) Credit ($) </u>

Unearned ticket revenue 129,600

Total revenue 129,600

<em><u>(To record the effect of presenting an event.) </u></em>

c. Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified?

It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.

Download xlsx

4 0

2 years ago

Which of the following is not relevant when deciding whether or not to discontinue a product line?

FrozenT [24]

Answer:

Fixed costs that can be avoided by discontinuing the line.

Explanation:

Avoidable costs are those costs which can be eliminated by closing or rejecting a decision under evaluation. These costs are mostly variable coasts which vary with the change in activities. More activity more cost, less activity less cost and no activity no cost.

So fixed costs that can be avoidable by discontinuing the project is the only irrelevant cost between the given options.

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3 years ago