Answer:
Explanation:
This could be due a number of factors.
1 Externality effect
2 There could also be market failure, when property rights are not properly defined.
Externality is the effect of a third party on a property right, when all parties cannot come to an agreeable resolution on properties this could lead to inefficient use of land.
Also when the property rights are not put in place its difficult to come to a resolution that satisfies all parties.
Answer: Income will increase by $16 per unit
Explanation:
Your question isn't complete but the completed question was gotten online and would be used in answering the question accordingly.
The effect on income if Derby decides to make the motors will be calculated thus:
In-house:
Direct material = 38
Direct labor = 50
Overhead (Incremental) = 21
Total variable cost = 109
Outside:
Cost of supply = 125
Therefore, the income per unit will increase by (125 - 109) = 16.
Answer:
The correct option is;
The company's Financial Books
Explanation:
In order to effectively and clearly let interested parties access pertinent information about a company, financial books are kept which show the companies economic performance and its position related to financing. Information about a company can be located in financial statements including shareholders equity, cash flow statements, income statements and balance sheets.
Answer:
recognized on March 31 after the delivery of the equipment
Explanation:
Revenue is recognized once the recognition criteria is met. These criteria includes;
- the cost of the item sold can be measured reliably
- the items has been delivered or the service has been rendered
Given that the contract specified a delivery date of March 1.
The equipment was not delivered until March 31 and as such, the revenue for the contract should be recognized on March 31 after the delivery of the equipment.
Answer:
The expected excess return will be 11.4%
Explanation:
The S&P 500's excess return is the market return (rM). Using the CAPM model or the SML approach, we can calculate the required/expected rate of return on the stock we are investing in.
The expected rate of return is,
r = rRF + β * (rM - rRF)
Thus, return on the invested stock will be:
r = 0.03 + 1.2 * (0.1 - 0.03)
r = 0.114 or 11.4%
