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2 years ago

How does supply and demand inform the choices of consumers and business owners?

1 answer:

6 0

In the sale of goods and services, price is determined by the interaction between supply and demand. In a graph, the point where the supply curve and demand curve intersect is called the equilibrium point. This point corresponds to the equilibrium price, the one a business should seek to charge. If suppliers charge a price higher than equilibrium a surplus will result. If they charge less a shortage will result

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The master budget is: a.used for misinformation and coordination. b.broken down into daily budgets. c.typically for a 1-year per

Dennis_Churaev [7]

C! hope this helps i got it right

8 0

2 years ago

Miller Mining, a calendar-year corporation, purchased the rights to a copper mine on July 1, Year 1. Of the total purchase price

dybincka [34]

Answer: $4,500

Explanation:

Equipment was purchased for $76,000.

It has an estimated useful life of 8 years.

It will be sold for $4,000 after these 8 years so that is the salvage value.

With these figures depreciation per annum is calculated with the following formula;

$Depreciation per annum = \frac{Cost of Asset - Salvage Value}{Useful life}$

= $\frac{76,000 - 4,000}{8}$

= $9,000

The Equipment was purchased on July 1, Year 1. In Year 1 therefore it will only be in use for half the year and this is what it should b depreciated in light of.

Semi-annual Depreciation = 9,000/2

= $4,500

7 0

3 years ago

n 2007, an unseasonably dry spring led to a sharp decline in the quantity harvested of black morels, a wild mushroom found thr

Alexeev081 [22]

Answer:

Increase; fall

Explanation:

Due to the slightly above normal rainfall levels which led to a large black morel harvest, the supply of the commodity will increase.

However, since demand for the commodity is expected to remain the same as it was in 2007 despite the increase in supply, the equilibrium price is expected to fall as supply exceeds demand.

4 0

3 years ago

A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turno

Lunna [17]

Answer:

d) $60,000 is released into working capital

Explanation:

Inventory turnover is the number of times that a firm buys and sells inventory. A high inventory means that the company sells its stock many times in a year.

the formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

=$160,000

If the firm improves its turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

The firm average inventory will $100,000 as opposed to $160,000 previously.

$60,000 will be released to working capital.

3 0

3 years ago

You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 15 comma 555 at

Vilka [71]

Answer:

Present value = $75,379.47

Future value is $91,567.97

Explanation:

a) Present value of cash flow is calculated as:

$Present\ value = \frac{(15,555}{1.067} + \frac{(31,110}{(1.067)^2}) + \frac{(46,665}{(1.067)^3})$

Present value = $14578.25 + $27,325.69 + $33475.53

Present value = $75,379.47

b) Future value of windfall is calculated as

$Future\ value = present\ value \times (1-r)^n$

$Future\ value = 75379 \times (1+ 0.067)^3$

Future value is $91,567.97

7 0

2 years ago