All categories

3 years ago

An inferior good is:

1 answer:

3 0

An inferior good is a goods whose demand curve will shift rightward as incomes rise. It is not <span>like the normal goods, for which the opposite is observed. Normal goods are those for which consumers' demand increases when their income increases. (a)</span>

You might be interested in

Cory issued a note to his creditor in exchange for an account. Cory records the transaction by debiting

Taya2010 [7]

The answer is D. a debit to accounts payable and a credit to notes payable. This is because Cory issued a note to his creditor as a promise that he will pay the creditor. With this, he will be gaining a Notes Payable, or a promissory note stating that he will pay, and will be losing an Accounts Payable. So according to the rules of accounting, if a liability is debited, then it will be lessened from the books of the business. If a liability is credited, however, then it will be added to the records of the business.

3 0

4 years ago

Read 2 more answers

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo

Arisa [49]

Answer:

Wingate Company

1. A Contribution Format Income Statement for divisions:

2a. Increase monthly advertising for the West Division by $28,000 to increase its sales by 12%

East Central West Total

Sales $412,000 $670,000 $520,000 $1,602,000

Variable exp. 181,280 207,700 166,400 555,380

Contribution

margin $230,720 462,300 353,600 1,046,620

Fixed expenses 290,000 332,000 191,000 813,000

Non-Traceable

Fixed Expenses 338,000

Net operating Income

(loss) ($59,280) $130,300 $162,600 ($104,380)

2b. How much Company's Net Operating Income Increase (Decrease) with the implementation of the above Proposal:

Net operating income before advert = $162,600

Division's net operating income after advert = $160,366

Therefore, the company's net operating loss will increase by $2,234

Explanation:

a) Wingate Company's recent monthly contribution format Income Statement:

Sales $ 1,602,000

Variable expenses 555,380

Contribution margin 1,046,620

Fixed expenses 1,151,000

Net operating income (loss) $ (104,380)

b) Division West's Income Statement:

Sales $582,400 ($520,000 x 1.12)

Variable expenses 203,034 ($181,280 x 1.12)

Contribution margin $379,366

Fixed Expenses 219,000 ($191,000 + 28,000)

Net Operating Income $160,366

c) If sales value increases by 12%, the variable expenses will increase proportionately, unless there is an increase in the price, which will ultimately reduce demand, further depressing the sales value. This is why it is called Variable Cost. Therefore, a different result will be obtainable if the variable expenses are held constant, contrary to its behavior.

4 0

3 years ago

On July 1, Atlantic Cruise Lines issues a $100,000, eight-month, 7% note. Interest is payable at maturity. What is the amount of

Elenna [48]

The answer is $3,500.

Given,

On July 1, Atlantic Cruise Lines issues a $100,000, eight-month, 7% note.

Interest is payable at maturity.

Maturity date = July 1 + 8 months = March 1

Total interest incurred on maturity = Value of the note × Interest rate × time period

= $100,000 * (0.07) (\frac{8}{12})$

= $4,666.67

Number of months as on December 31 = 6 months

Therefore, the amount of interest expense that the company would record in a year-end adjustment on December 31 is given by:

Interest expense = Total interest incurred on maturity × no. of months as on December 31

= $4,666.67 × $\frac{6}{8}$

= $3,500

Hence, the amount of interest expense that the company would record in a year-end adjusting entry on December 31 is $3,500

Learn more about interest expense:

brainly.com/question/11686424

7 0

3 years ago

The amounts reported for assets and liabilities in the total column for the combining balance sheet for nonmajor governmental fu

torisob [31]

Answer: True

Explanation:

Governmental funds refers to the assets, money, or property, of the government.

It should be noted that the non major governmental fund is also a form of fund as well and therefore, the amounts that are reported for assets and liabilities in the total column for the combining balance sheet for the nonmajor governmental funds will also have to be reported in the other governmental funds column of the governmental funds balance sheet.

Therefore, the correct option is True

8 0

3 years ago

Mary's campaign consistently meets its average daily budget. what should she do to maximize her budget throughout the entire day

olganol [36]

The thing that Mary should do <span> to maximize her budget throughout the entire day is: Change the delivery method from "standard" to "accelerated"
By changing the delivery method into accelerated, mary's add will be displayed more frequently as soon as each day starts until mary's total budget is reached.</span>

7 0

3 years ago