Answer:
The entire demand curve will shift upwards
Explanation:
SEE IMAGE ATTACHED
The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product.
Answer: The correct answers are a) & b). That is MARTHA, MARTHA; JANE.
Explanation: Absolute advantage exists when a party can oroduce a highe quantity of a good or product. This is the situation with Martha in her productions.
Comparative advantage on the other hand is when a party has a lower opportunity cost. This exists in both the production of quilts and chocolate chip cookies.
Answer:
$120 per unit
Explanation:
The computation of minimum acceptable transfer price is shown below:-
If the division of the transferor does not have spare capacity, the minimum transfer price is equal to variable cost per unit and the contribution margin per unit
Minimum transfer price = Variable cost per unit + (Selling price to outside customers - Variable cost per unit)
= $72 + ($120 - $72)
= $72 + $48
= $120 per unit
Therefore for computing the minimum transfer price we simply applied the above formula.
If this is a true or false statement, then true.
Answer:
The bond's issue costs is $364000
Explanation:
The issue costs of the debt financing is listed below:
Payment for printing and engraving $26000
Legal fees $100000
Professional fees $8000
Underwriter's spread <u> $230000</u>
Total issue costs <u> $364000</u>
All the above highlighted costs are relevant to the bond's issuance ,hence they are added up in arriving at the bond's issuance costs.
The spread between the payment by the underwriter and the retail price is essential so as to ensure the number of bonds planned can be sold quickly.
It is more like the payment to the underwriter to underwrite and ensure everything is sold.
