3 . Relationship between tax revenues, deadweight loss, and demandelasticity

Water World sells wake boards and water skis and pays sales commissions based on product sales price. The wake boards sell for a

victus00 [196]

Answer:

Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them.

The company would rather see more skis sold as it creates the higher profit per unit for the company.

Explanation:

As from the company's perspective the sales of skies shall be more, as it offers higher revenue per unit, in form of higher contribution than that of boards per unit, the company estimates to sell more of these units.

Further, as the sales commission is based on the price of article sold, and boards have higher selling price,

As sales commission is to be earned by individual acting as agent will sell more units of boards to get higher commission.

3 0

4 years ago

During December, the production department of a process operations system completed and transferred to finished goods a total of

slega [8]

Answer:

Direct material cost per equivalent unit = $3.77

Explanation:

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Cost per equivalent unit = cost / total equivalent units

To determine the direct material cost per equivalent unit, we follow the steps below

Step 1

Determine the total equivalent units

Item Workings Equivalent unit (E.U)

Finished good 100% × 59,000 = 59,000

Closing WIP 50% × 15,000 = 7,500

Total equivalent unit 66,500

Step 2

Determine the cost per equivalent unit

Total direct material cost = $ (60,100 + 190,800)

= $ 250,900

Direct material cost per equivalent unit

= 250,900/66, 500 E.U

= $3.77

Direct material cost per equivalent unit = $3.77

4 0

3 years ago

On February 1, 2018, Cue Company acquired 1,000 shares of its $1 par value stock for $47 per share and held these shares in trea

Drupady [299]

Answer:

The journal entries to record both transactions should be:

February 1, 2018, repurchase of 1,000 stocks at $47

Dr Treasury stocks 47,000

Cr Cash 47,000

April 10, 2019, treasury stocks were sold at $50

Dr Cash 50,000

Cr Treasury stocks 47,000

Cr Additional paid in capital 3,000

Treasury stocks account is a contra equity account with a debit balance that reduces the value of total stockholders' equity.

7 0

3 years ago

On December 31, the company's Cash account had a balance of _____. $40,000 $54,000 $110,000 $124,000

notka56 [123]

Answer:

The company's Cash account had a balance of $54,000 on December 31.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the questions as follows:

Company's cash account had balance of 14000 on January 1

Receipts from customers- 50,000

payments for dividends- 10,000

receipts for dividends- 5,000

payments for merchandise- 25,000

receipts from issuance of stock- 20,000

On December 31, the company's cash balance is?

A 40,000

B 54,000

C 110,000

D 124,000

The explanation of the answer to the question is now given as follows:

the company's Cash account balance On December 31 can be obtained by simply adding the total cash receipts to and deducting the total cash payments from the Company's cash account balance of 14000 on January 1. This can be expressed as follows:

Cash balance on December 31 = Cash account balance on January 1 + Total cash receipts - Total cash payments .............. (1)

Where we have:

a. Cash account balance on January 1 = $14,000

b. Calculation Total cash receipts

Details $

Receipts from customers 50,000

receipts for dividends- 5,000

receipts from issuance of stock 20,000

Total cash receipts  75,000 

c. Calculation Total cash payments

Details $

Payments for dividends 10,000

payments for merchandise 25,000

Total cash payments 35,000

Substituting the values into equation (1), we have:

Cash balance on December 31 = $14,000 + $75,000 - $35,000 = $54,000

Therefore, the company's Cash account had a balance of $54,000 on December 31.

6 0

3 years ago

Isabel buys candy that costs $6 per pound. she will spend less than $72 on candy. what are the possible numbers of pounds she wi

Paladinen [302]

Up to 11.9 pounds of candy.

4 0

3 years ago