Answer:
Explanation:
Firms maximise their profit by supplying at the point where marginal revenue equals marginal cost.
In a Perfect competition, the Demand curve is also the Average revenue as well as the Marginal Revenue curve. As such, the company will sell where the marginal cost curve intersects with the Demand curve which was at point E. The price will therefore be at point B.
When the firm comes under a monopoly, it will start to supply as a monopoly does. In the Monopoly, the Marginal revenue curve is less than the demand curve and so the point where the MC curve intersects with the MR curve is the quantity they will supply at. That point is D. The price will be where this quantity intersects the demand curve which is at point A
Answer:
a. The stock's price one year from now is expected to be 5% above the current price.
Explanation:
Under gordon model:
If we calculate the value of the stock for the year after that:
to calculate the value of the increase we divide next year over current year.
We have demostrate that next year stock should increase by 1 + growth so statement c is correct.
Answer:
See explanation section
Explanation:
See the images to get the answer
Answer:
a. see attachment
b.
total equivalent units : Materials = 30,500 units and Conversion Costs = 16,860
cost per equivalent unit : Materials = $0.14 and Conversion Costs = $0.30
c.
(a) units completed and transferred to Finished Goods = $6,732
(b) units still in process at June 30 = $1,196
d.
<u>Journals</u>
Work In Process :Direct Materials $4,305 (debit)
Raw Materials $4,305 (credit)
<em>Being Raw Materials used in Production</em>
Work In Process :Direct Labor $3,320 (debit)
Salaries Payable $3,320 (credit)
<em>Being Labor used in Production</em>
Work In Process ; Overheads $1,738 (debit)
Overheads $1,738 (credit)
<em>Being Overheads Assigned to Production</em>
Finished Goods $6,732 (debit)
Work In Process $6,732 (credit)
<em>Being Units transferred to Finished Goods</em>
Explanation:
<u>Calculation of Equivalent units of Production in respect with Raw Materials and Conversion Costs</u>
1. Materials
Ending Work In Process (5,200 × 100%) 5,200
Completed and Transferred Out (15,300 × 100%) 15,300
Equivalent units of Production in respect with Raw Materials 30,500
2. Conversion Costs
Ending Work In Process (5,200 × 30%) 1,560
Completed and Transferred Out (15,300 × 100%) 15,300
Equivalent units of Production in respect with Conversion Cost 16,860
<u>Calculation of Cost per Equivalent unit of production in respect with Raw Materials and Conversion Costs</u>
Unit Cost = Total Cost ÷ Total Equivalent units
1. Materials
Unit Cost = $4,305 ÷ 30,500
= $0.14
2. Conversion Costs
Unit Cost = ($3,320 + $1,738) ÷ 16,860
= $0.30
3. Total unit cost
Total unit cost = Material Cost + Conversion Cost
= $0.14 + $0.30
= $0.44
<u>Calculation of costs assigned to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30.</u>
(a) units completed and transferred to Finished Goods
Total Cost = units completed and transferred out × total unit cost
= 15,300 × $0.44
= $6,732
(b) units still in process at June 30.
Total Cost = Materials Cost + Conversion Cost
= $0.14 × 5,200 + $0.30 × 1,560
= $1,196
