Let us see it from a cost-efficiency point of view. We have that every unit of the first selles costs 40$. But the total cost might be higher, since there is a chance for defect. On average, on 3% of the cases the defect will happen and it will cost him 500$. Hence, on average, a fence unit from producer a costs 40$ and has a repair cost of 3%*500$=15$. The total thus is 55$. For the second provider of fences, the standard cost is 50$. Similarly, the average repair cost is 0,5%*500$=2,5$. Hence, the total cost per unit is 52,5$ (total cost=upfront payment+repair costs). We see thus that the lady should win the bid; even if you pay more upfront, the difference in durability makes up the cost difference.
Answer:
The correct option is A:
cost of goods sold 10,750
merchandise inventory 10,750
Explanation:
When goods are bought for resale,the total cost of the goods bought is usually the invoice price paid as well as the cost of bringing in the goods i.e freight,hence the cost of the goods sold here is the invoice price of $10,000 plus the freight of $750,giving total cost of $10,750
When the goods are sold,merchandise inventory would be credited with $10,750 while cost of goods sold is debited with same amount.
The correct option is first one with cost of goods sold debited with $10.750 and merchandise inventory credited for $10,750
Example of a producer can be regarded as someone owning a book store .
<h3>Who is a producer?</h3>
A producer can be regarded as a manufacturer of a particular product or service.
Therefore, in the case above, a producer serves as the one that own the shop, however he can decide to distribute his products to retailer.
Learn more about producer at;
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Answer:
Frictional unemployment. This is unemployment caused by the time people take to move between jobs, e.g. graduates or people changing jobs. ...
Structural unemployment
Explanation:
