Answer:
III. The supply of soft drinks decreases
Explanation:
Changes different from price and quantity supplied or quantity demanded will cause changes in the total supply or demand. In this case, an increase in the cost of the aluminum used by soft-drink companies will increase their cost of production. Because this affects companies which supply canned soft drinks, this increase in the cost of production will affect the total supply. If the cost of production increase, with the same resources, they will produce less but need to compensate this decrease in units by increasing the price. In the demand and supply graph, the supply will shift to the left and this will decrease the equilibrium quantity and increase the equilibrium price.
Answer:
c) produce in the short run but shut down in the long run.
Explanation:
Option C is correct because the price charged is above the average variable cost which means the firm is still covering its variable cost of production. Moreover, if the firm still continues the same in the long run then it will shut down its operation. But if the price charged is below or equal to average variable cost then the firm will shut down its production even in the short run.
Answer:
Explanation:
Amount realized on sale:
Cash $75,000
Purchaser’s note 675,000
$750,000
Adjusted basis (535,000)
Gain realized on sale $215,000
b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.
Cash received in year of sale:
Cash at closing $75,000
August principal payment 33,750
$108,750
Gain recognized (108750*28.67%) $31,179
A. Book gain $215,000
Tax gain (31,179)
Book/tax difference $183,821
B. $183,821 × 35% = $64,338 deferred tax liability
The excess of book gain over tax gain is a favorable difference.
Answer:
The correct answer is Fixed overhead costs.
Explanation:
Fixed overhead costs are those costs incurred by a company that do not depend on the scale of production. There are two main types of expenses in relation to the financial balance of a company. The other type is variable expenses.
A company may encounter many different types of fixed expenses, but they all have something in common. Unlike variable expenses, fixed expenses will be maintained even if the company stops producing goods and services for a while or even if its production increases.
An example of a fixed cost would be the license that a company may need each year to operate, but whose amount does not vary if production increases. If production were increased, the value obtained thanks to that license would increase, but the cost would remain the same. Therefore, fixed costs are essential to take advantage of economies of scale.
Answer:
The correct answer is consideration.
Explanation:
In securities or credit securities, the acquisition or settlement value at any given time, calculated at an exchange rate or with a premium or discount on the nominal value. Both can coincide if the change is 100% or there is neither a premium nor a discount.
The concept of effective value is not absolute, as it depends on what cost factors are estimated. Thus, for the calculation of the equivalent annual rate, only interest and commissions accrued for the credit operation are deducted from the nominal value, but not for other services annexed to it, as is the case with the minimum charge for discounting the discounted effects . However, the cash of an operation that may be of interest to the holder of the transaction will normally be determined by considering all kinds of concepts that reduce the nominal value.