Answer:
This manufacturer should have to take the option of dropping Dillard's and including Macy's and Saks Fifth Avenue.
Explanation:
When manufacturers produce, they do so for the sake of gains and profits. A larger market provides bigger profits compared to a smaller one.
This question tells us that this manufacturer has a greater number of customers looking to get there products at Neiman Marcus, Macy's, and Saks Fifth Avenue. So since these places would provide him a bigger market, so he should partner with these retail markets (Neiman Marcus, Macy's, and Saks Fifth Avenue) and drop the market with just few customers (dillards).
Answer:
The correct answer is option c.
Explanation:
An oligopoly market is a form of imperfect competition where there are a few firms. These firms can produce identical or differentiated products. Because of a few firms in the market, there is a high degree of competition in the market.
These firms are interdependent such that the economic decisions of a firm affect its rivals. So each firm has to consider the reaction of its rivals before making decisions.
The firms are price makers and face a downward-sloping demand curve.
<u>Journal entry for the issuance of Bonds:</u>
It is given that on December 31, 2015, wintergreen, inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. That means the proceeds from issue of these bonds are 150,000*93.25/100 = $139,875 and the discount on issue of bonds shall be = 150,000-139875 = $10,125.
The Journal entry for the issuance of Bonds shall be as follows:
December 31, 2015
<u>Account Titles </u> <u>Debit</u> <u>Credit</u>
Cash $139,875
Discount on Bonds Payable $10,125
Bonds Payable $150,000
(Being bonds issued on discount)
