Answer:
Sam: Supply decreased, but demand was perfectly elastic.
Explanation:
Sam is right because the only possible explanation is that the demand is perfectly elastic and the supply decreased. When the price elasticity of demand is perfectly elastic, the demand curve is completely horizontal. Since the price of coffee remained the same, that means that the quantity demanded will decrease only if the supply of coffee decreased.
Answer:
$2,400
Explanation:
The computation of the depreciation expense under the activity-based depreciation method is shown below:
= (Original cost - residual value) ÷ (estimated production units)
= ($12,000 - $4,000) ÷ (20,000 units)
= ($8,000) ÷ (20,000 units)
= $0.4 per unit
Now for the first year, it would be
= Production units in first year × depreciation per unit
= 6,000 units × $0.4
= $2,400
Answer: d. The invoice amount is greater than $3,300 and less than $3,400.
Explanation:
The terms of the sale are FOB destination, 2/10, n/30. This means that company B will get a 2% discount if they pay in 10 days, if not, they will have to pay in 30 days.
The goods were sold at a list price of $4,200.
Company B returned $750 according to the Credit memo from Company A.
This reduces the transaction amount by that credit memo,
= 4,200 - 750
= $3,450
It is stated that Company B paid within the discount period which was 10 days so they get the discount for a total balance of,
= 3,450 * (1 - 2%)
= $3,381
The answer therefore is option D.
Answer: B. It is shifting from a planned to a free-market economy.
Explanation:
