Internalizing a positive externality will result in the demand curve to 'shift to the right'. Therefore, option A <em>'shift to the right' </em>is the correct answer.
A positive externality exists if the consumption and production of a service or good benefits a third party that is not directly involved in the market transactions. When a company <em>internalizes </em>a positive externality, then the demand for its products and services would increase. Since this improves the delivery of goods and services with improved quality to consumers without having any direct motives to increase the monetary income of the company. This is clearly a positive boosting factor for the company, which in turn, will increase the demand for the company's goods and services and shift the curve to the right.
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Workers at nuclear power plants wear film badges to determine and measure their exposure to radiation. It is important for them to monitor their exposure to ionizing radiation. Through this method, workers can determine whether the radiation levels are already too dangerous or not.
Answer:
The journal entries are as follows:
(a) On July 16,
Account receivable A/c Dr. $1,200
To sales revenue $1,200
(To record Sales)
Cost of goods sold A/c Dr. $720
To Inventory $720
(To record cost of goods sold)
(b) On July 19,
Sales return and allowance a/c Dr. $200
To Account receivable $200
(To record sales return)
Inventory A/c Dr. $120
To Cost of goods sold $120
(To record cost of goods return)
(c) On July 22,
Cash (1,000 × 98%) A/c Dr. $980
Sales discount A/c Dr. $20
To Account receivable $1,000
(To record amount received)
I think for this item, it will be acceptable if we suggest that the branch manager's salary would be increased. It is through him/her and the dedication of the team members that the sales are very high. If the salary is not increased then, the manager and the team should be compensated for the job well done.
Answer:
option $13.30
Explanation:
Data provided in the question:
Units sold = 50,000
Revenue = $850,000
Fixed cost = $210,000
Variable cost = $140,000
Selling and administrative costs:
Fixed = $300,000
Variable = $45,000
Tax rate = 40%
Production and sales for the next accounting period = 40,000
Now,
Total Contribution margin = Revenue - Variable cost
= $850,000 - $140,000 - $45,000
= $665,000
Therefore,
For 40,000 units
Contribution margin per unit
= ( Total contribution margin ) ÷ (Number of units sold )
= $665,000 ÷ 50,000
= $13.30
Note : Contribution margin remains the same in per unit
Hence,
For 40,000 sales the Contribution margin per unit will be option $13.30
