Answer:
TRUE
Explanation:
When supply is perfectly inelastic, the supply curve is vertical as shown in the attached plot. Thus, the tax that shifts the supply curve upward would have no effect on the equilibrium quantity or price paid by consumers. Since equilibrium quantity or price paid by consumer don't change there's no burden on them. However, no team's owners would receive a lower after tax price and thus bearing the entire tax burden.
Answer:
b. $85,000
Explanation:
First, we should prepare the analysis of cost savings if the company buys outside.
Analysis of cost and savings
Purchase (5,000 units × $68) = ($340,000)
Savings
Variable cost = $80,000
Fixed cost = $175,000
Net income effect
($85,000)
The effect is a decrease in net income by $85,000.
Answer:
D. All of the statements are correct.
Explanation:
The Seller requires to
Reduce its sales by the estimated return value and cost of goods sold by the estimated cost value of the units expected to return in the future.
Use historical data of sales and returns and calculate the value of expected return items.
After the estimation of values record the adjusting transaction for the estimated return liability and the inventory to be returna as well.
Answer:
Factory overhead= $22,900
Explanation:
Giving the following information:
Direct materials $15,200
Indirect materials 3,200
Indirect labor 7,700
Factory depreciation 12,000
Direct labor 36,200
<u>Factory overhead is all the indirect costs related to production. In this case:</u>
Factory overhead= indirect materials + indirect labor + factory depreciation
Factory overhead= 3,200 + 7,700 + 12,000
Factory overhead= $22,900
Answer:
Total cost will increase and fixed cost per unit will decrease V
Explanation:
