Answer:
A. $ 3,750,000
Explanation:
Given that
At lower price
A copy is $3
Copies sold = 1.25 million
Recall that
Total revenue = Price of good × quantity of goods sold.
That is, the total amount of money a seller obtains by selling goods or/and services to a buyer(s)
Thus
Total revenue at low cost
= 3 × 1.25 million
= 3.75 million
= $3,750,000
You eat at the time you need to and they service you
Answer:
A. To keep banks with falling asset values solvent.
Explanation:
When a bank is failing it will result in loss of funds not only for the bank but also for customers that have accounts in these banks.
If a bank eventually closes operations as a result of insolvency, they will not be able to pay off the customers. That is where the deposit insurance comes in to settle customers.
The government will have to spend a lot of money reimbursing customers their money.
To avoid this the federal government ensures the capital of banks is maintained to keep banks with falling asset values solvent.
Answer: Consumer price index
Explanation: A Consumer Price Index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically
Answer:
Warranty Expense (Debit) $3,960
Warranty Liability (Credit) $3,960
Explanation:
The principle we apply while making entries for standard warranty is this:
The <u>estimated amount of warranty expense</u>, <em>which a company founds as a percentage of its sales from historical claims and data</em>, is taken as benchmark to accrue the warranty expense in the period when the sale is made <em>(matching principle) .</em>
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In our question, 4.5% is the estimated warranty expense.
The company then sets off the estimated warranty expense (Debit)
(<em>4.5% * $88,000 = $3,960</em>)
with the warranty liability (Credit) to entertain any claims in future.
