Answer:
Demand would have to drop by 27,500 units and above
Explanation:
<em>With a proposed increase in price of 10%, Calypso would like break-even, that to ensure that its total revenue covers its total fixed costs. . This would mean the minimum quantity should be that which will produce a total contribution that covers the total fixed cost. And would produce a profit of zero.</em>
<em>New selling price after 10% Increase = 110% × $30 =</em><em> $33</em>
Minimum quantity = Total fixed / contribution per unit
<em>Contribution per unit = selling price - variable cost per unit</em>
= $33 - $25
= $8 per unit
<em>Minimum quantity = Total fixed cost/contribution per unit</em>
= 180,000/ 8
= 22,500 units
<em>The decrease in demand = Current quantity - minimum quantity</em>
= 50,000 - 22,500
= 27,500 units
Demand would have to drop by 27,500 units and above
Answer:
Parson would recognize an interest revenue of $1375
Explanation:
The quoted interest rate on bond is the annual rate of interest. The bond is for 3 months which means that the interest revenue will be recorded for the 3 months period from June to August and the bond will mature on 31 August.
The interest revenue to be be recorded on this note is,
Interest Revenue = 55000 * 0.1 * 3/12 = $1375
The entry to record the receipt of interest and face value will be,
Cash 56375
Interest revenue 1375
Bonds Receivable 55000
In economics, short run is time frame in which the quantities of quantities of some factors of production are fixed; and long run is period of time in which quantities of all the factors of production that can be varied.
<h3>
What is production?</h3>
Production is the process of mixing several inputs, both material (like metal, wood, glass, or polymers) and immaterial (like plans, or information) in order to produce output. A valuable good or service that enhances people's utility will be this output's ideal form. Production theory is the branch of economics that focuses on production; it is closely tied to the consumption theory of the economy. Utilizing the first inputs productively leads directly to the manufacturing process and results. Land, labor, and capital are regarded as the three major production components and are known as primary producer commodities or services. These essential ingredients do not substantially change during the output process or turn into a complete part of the final product.
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Answer:
1 -- A, 2 -- B, 3 -- C, 4 -- E, 5 -- D
Explanation:
Securities held to maturity --
It requires the positive intent as well as ability.
Unrealized holding gains and losses --
Reported for the income statement of trading securities.
Impairment of securities available for sale --
Requires a recognition in income statement when judged to be other than the temporary.
Losses of investee --
Recognized only to extent of the carrying value under an equity method.
Amortization of a patent that was obtained in a business acquisition --
Reduces the investment account under an equity method if the fair value is higher than the book value.