Explanation:
The Journal Entry is given below:-
a. Cash Dr, 8400
Accounts receivable 8400
(Being the Cash received)
b. Supplies Dr, 2500
Office equipment 2500
(Being the reserve entry is recorded)
Supplies Dr, 2500
Accounts payable 2500
(Being the supply is purchased)
Answer:
The correct answer is letter "D": seeks to deliver superior value to buyers by satisfying their expectations on key attributes and beating rivals in meeting customer expectations on price.
Explanation:
Best-cost provider is a strategy by which suppliers attempt to provide consumers with high-quality products using methods of production that reduce costs. By doing so, suppliers would give more value to the money of their customers while meeting their expectations on the product purchased at the same time.
As production costs are lower, suppliers would be generating a comparative advantage.
Answer:
The markup calculated as a result of information about the elasticity of demand
Explanation:
As a monopoly seller of pharmaceutical products the price set as markup would be above our marginal cost.
There are three facts about markup:
1. The Markup is not to be a price below marginal cost of the pharmaceutical product.
2. Markup is smaller when demand is more elastic. Remember if the price elasticity of demand is lower than 1, (negative) a rise in price causes an
increase in revenue for the seller.
Therefore having a -4 elasticity of demand could imply more profits for the firm.
Answer:
$69,000
Explanation:
The computation of the operating income would be shown below:
= Buying cost - making cost
where,
Buying cost equals to
= 60,000 × $3
= $180,000
And, the making cost would be
= Variable cost + fixed cost × avoid percentage
= $90,000 + $70,000 × 30%
= $90,000 + $21,000
= $111,000
Now put these values to the above formula
So, the value would equal to
= $180,000 - $111,000
= $69,000
Answer:
The answer is:
10% fixed rate = Company X's external borrowing (rate);
11.8% fixed rate = Company Y's payment to X (rate);
LIBOR + 1.5% = Company X's payment to Y (rate);
LIBOR + 1.5% = Company Y's external borrowing rate.
Explanation:
First, X will borrow at 10% fixed and Y will borrow at LIBOR + 1.5% floating; both at notational principal of $10 million.
Then; they will enter into a interest swap where:
- X will pay to the swap the interest rate of Libor +1.5% and receive from the swap the fixed interest rate of 11.8%. Thus, X interest income and interest expenses will be: Borrowed at fixed 10% and payment at Libor+1.5% to the swap; Receipt of 11.8% from the Swap=> Net effect: X borrowed at LIBOR - 0.3% ( saving of 0.3%).
- Y will pay to the swap the fixed interest rate 11.8% and receive from the swap LIBOR +1.5%. Thus, Y interest income and interest expenses will be: Borrowed at LIBOR +1.5 and payment 11.8% fixed to the swap; Receipt of Libor + 1.5% from Bthe Swap=> Net effect: Y borrowed at 11.8% fixed ( saving of 0.2%).
