Answer and Explanation:
The Preparation of the cash budget is shown below:-
PTO Co.
Cash budget
For the month ended Sept. 30
Particulars Amount
Beginning cash balance $41,000
Add: Cash receipts for sales $258,000
Total cash available $299,000
LesS:
Cash disbursement
Direct Material $97,200
($72,000 × 30%) + ($108,000 × 70%)
Direct labor $30,000
Other expenses $59,000
Accrued Taxes $10,800
Interest on bank loan $1,700
Total Cash disbursement $198,700
Ending cash balance $100,300
Answer:
SUBSTITUTION BIAS
Explanation:
Substitution bias occurs when a customer decides to purchase a substitute of a good after the prices becomes cheaper than the goods they normally purchase. It rises as a problem in price index due to the fact that customers/buyers can decide to change or substitute goods at an instant because of changes in prices. In situations like this, customers tend to avoid the whole increase in prices by changing to cheaper substitutes. Substitution generally is a consumer changing or substituting an expensive product for a cheaper one due to changes in prices. This usually leads to inflation rate been overestimated or overstated.
When marginal profit turns negative, producing more output will decrease total profits. Total profit is maximized where marginal revenue equals marginal cost. In this example, maximum profit occurs at 4 units of output.
Answer: Joint Venture
Explanation:
Joint Venture is a form of business whereby two parties will have to come together and utilize their resources and put their skills together as well in order to achieve a common goal.
Zen Corp, an Australian company, and Pluto Inc, an American company, entered into a one-time contract to build an elevated expressway in Florida. The contract was for a period of five years and both companies were equally liable under their agreement. This is a form of joint venture.
Answer:
The correct answer to fill the blank space will be option "C"
Explanation:
The relation between minimum wage and employment depends on the magnitude of the minimum wage relative to wage rate. Seein this we can say that an increase in the legal minimum wage will bring up the employment rate if it is set bellow the wage rate.
