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3 years ago

Identify the four major requirements necessary for a free-market system to operate.

1 answer:

7 0

The free market is defined as the system in which the price of goods is agreed upon by consent between sellers and consumers, through the laws of supply and demand. Their requirements are the existence of free competition, (which in turn requires that among the participants of a commercial transaction there is no coercion, no fraud, or more generally, that all transactions are voluntary), complete universal information about the products and their prices, a free medium of exchange with a common currency, reasonable transaction costs, set of sellers and a set of buyers.

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Autoliv produces air bag systems that it sells to automobile manufacturers throughout the world. Assume the company has a capaci

gogolik [260]

Answer: See explanation

Explanation:

a. The variable cost per unit will be:

= (3,825,000 - 3,680,000) / (45million - 40 million)

= 0.029

Then, the financial order of accepting the order will be:

Contribution margin = Unit selling price - Unit

= 65 - 29

= 36

Since the size of the order is 100,000, the financial impact of accepting the order will be:

= 36 × 100,000

= 3,600,000

b. The differential analysis will be:

Contribution from special order = 3,600,000

Opportunity cost {100,000 = 120,000,000 - 29,000,000 = 9,100,000

Net disadvantage of accepting order will then be:

= 3600000 - 9100000

= 5,500,000

5 0

3 years ago

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.6 grams

Aleksandr-060686 [28]

Answer:

15,351.00 unfavourable

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price

gram

300 units should have used (300× 4.6) 1380

but did used 2,400

1020

Standard price × 15.05

Material quantity variance 15,351.00 unfavourable

5 0

3 years ago

Prime Corporation's building was destroyed by a tornado. The fair market value of the building at the time of the tornado was $4

Sergio [31]

Answer:

D) $150,000

Explanation:

Insurance proceeds that are not reinvested in replacing damaged property are taxed. Apparently Prime corporation didn't reinvest into replacing the property, so this transaction should be taxed as a property sale. Prime received $400,000 for the building with a $350,000 basis which results in a net gain = $50,000.

The other $100,000 were given as replacement income and therefore should be taxed as such.

So the total taxable amount = $50,000 + $100,000 = $150,000

4 0

3 years ago

Which type of loan requires that you pay the interest accumulated during college?

butalik [34]

B. the subsidized federal loan /////////////////////

7 0

2 years ago

Read 2 more answers

Which of the following are amortizable organizational expenditures? Group of answer choices Professional fees to issue the corpo

satela [25.4K]

Answer:

The answers are:

Professional fees to issue the corporation’s stock
Commissions paid by the corporation to underwriters for stock issue
Printing costs to issue the corporation’s stock

Explanation:

Organizational costs are the initial costs incurred when creating a company. They usually include legal and registration fees, promotions, and commissions paid.

After 10/22/2004, organizational cost up to $5,000 can be deducted as an expense. The remaining organizational costs can be amortized over fifteen years.

5 0

2 years ago