Answer: c.
In a competitive market, there are many producers competing to provide consumers the products they needed and thus they cannot dictate prices.
If a surplus occurs, there is an excess of quantity supplied and since producers won't be able to sell all their products, they tend or are forced to lower their price.
The reverse happens when there is a shortage. When there is less supply in the market, price increases.
Surplus and shortage in a competitive market, therefore, will cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage.
Answer:
$ 43,135.67
Explanation:
The amount required today is the present value of the future expected amount in 11 years computed using the present value formula below:
PV=FV/(1+r)^n*m
PV=the unknown present value
FV=$76,000
r=monthly interest rate=0.43%
n=number of years=11
m=number of months in 1 year=12
PV=$76,000/(1+0.43%)^(11*12)
PV=$76,000/(1+0.43%)^132
PV=$76,000/1.761883042
PV=$ 43,135.67
Answer:
C) Auction with reserve.
Explanation:
During an auction with reserve if the auctioneer is not able to reach a minimum price set by the owner of the objects that are being auctioned, then the owner has the right to withdraw his objects. Usually the reserve price is set before the auction takes place but may be changed during the auction depending on the actual bids. The reserve price is commonly not disclosed to the bidders in an auction.
Answer:
a. Inventory Turnover = 5.299 times or 5.30 times
b. Days in Inventory = 69 days
Explanation:
a)
To calculate the inventory turnover, we first need to find out the avergae inventory. The average inventory is calculated by adding the opening and the closing inventory and dividing the sum by 2.
- Average Inventory = (35750 + 63500) / 2 = $49625
The inventory turnover is,
- Inventory Turnover = Cost of Sales / Average Inventory
- Inventory Turnover = 263000 / 49625 = 5.299 times or 5.3 times
b)
Days in inventory is the period for which, on average, the inventory is kept and sold completely.
We can calculate days in inventory simply by dividing the number of days for which we are calculating the ratio for, say in this case one years or 365 days by the inventory turnover ratio we calculated.
Days in inventory = 365 / 5.30 = 68.8679 or 69 days
