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3 years ago

What happens to price when the cost of resources rise and falls

1 answer:

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In any business, when the cost of resources rise, the price of buying the commodity will also be high, this is because when it cost you much to produce a commodity, you will end up charging a higher price when selling it. Failure to do so may lead to making loses. The opposite is also true, when the cost of resources fall, the pricing will also be less.

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MG Lighting had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volu

kakasveta [241]

Answer:

The answer is: Projected net sales for this year are $45,254

Explanation:

The current total sales for MG Lighting are $50,000 (= 500 units x $100 per unit).

Next year their products will have a $10 increase (10%), so the unit price will be $110.

Due to the price increase, the number of units sold will decrease by 15%, to a total of 425 units.

MG Lighting total sales will be $46,750. Approximately 3.2% of the total sales will be returned (equivalent to $1,496).

MG Lighting net sales for this year should be $45,254 (= 46,750 - $1,496)

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3 years ago

Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert. Floyd subsequently transfers this du

Lerok [7]

Answer: an obligor

Explanation:

From the question, we are informed that Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert and that Floyd subsequently transfers this duty to Hazel.

In this case, Floyd is an obligor. An obligor os defined as an individual who by contract or due to a legal procedure, undertakes an obligation for another individual.

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3 years ago

A) Depreciation on the company's equipment for 2017 is computed to be $16,000.

OleMash [197]

Answer:

Adjusting Journal Entries:

a) Debit Depreciation Expense - Equipment $16,000

Credit Accumulated Depreciation - Equipment $16,000

To record depreciation charge for the year.

b) Debit Insurance Expense $8,100

Credit Insurance Prepaid $8,100

To record insurance expense for the year.

c) Debit Office Supplies Expense $2,583

Credit Office Supplies Account $2,583

To record office supplies used for the year.

d) Debit Deferred Revenue $2,750

Credit Service Revenue $2,750

To record revenue for work done this period.

e) Debit Insurance Expense $4,200

Credit Prepaid Insurance $4,200

To record insurance expense for the year.

f) Debit Wages Expense $5,000

Credit Wages Payable $5,000

To record unpaid wages as of December 31, 2017.

Explanation:

Adjusting journal entries are entries made in the journal to accrue expenses and revenue in line with the accrual concept and the matching principle of U.S. GAAP. The concept and principle require that expenses and revenue are matched in the period they were incurred and not when they were actually paid for or received.

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3 years ago

You have the following information for Crane Company for the month ended October 31, 2022. Crane uses a periodic method for inve

Mazyrski [523]

Answer:

Crane Company

1. Weighted average cost per unit = $25.032

2. (1) LIFO (2) FIFO (3) Average-cost

Ending inventory $1,580 $1,940 $1,752

Cost of goods sold 6,180 5,820 6,008

Sales revenue $9,150 $9,150 $9,150

Gross profit 2,970 3,330 3,142

Gross profit rate 32.5% 36.4% 34.3%

Explanation:

a) Data and Calculations:

Date Description Units Unit Cost or Selling Price Total

Oct. 1 Beginning inventory 50 $22 $1,100

Oct. 9 Purchase 110 24 2,640

Oct. 11 Sale (90) $35 $3,150

Oct. 17 Purchase 90 26 2,340

Oct. 22 Sale (50) 40 2,000

Oct. 25 Purchase 60 28 1,680

Oct. 29 Sale (100) 40 4,000

Total 310 (240) = 70 $7,760 $9,150

Weighted average cost per unit = $25.032

LIFO:

Ending inventory

= (50 * $22) + (20 * $24)

= $1,100 + $480

= $1,580

Cost of goods sold = $7,760 - $1,580 = $6,180

FIFO:l

Ending inventory:

= (60 * $28) + (10 * $26)

= $1,680 + $260 = $1,940

Cost of goods sold = $7,760 - $1,940 = $5,820

Weighted-average costs:

Ending inventory = 70 * $25.032 = $1,752

Cost of goods sold = $7,760 = $1,752 = $6,008

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3 years ago

Why must real options have positive value? (Select all the choices that apply.) A. Real options must have positive value beca

murzikaleks [220]

Answer:

B. Real options must have positive value because they are only exercised when doing so would increase the value of the investment.

C. Having the real option but not the obligation to act is valuable.

D. If exercising the real option would reduce value, managers can allow the option to go unexercised.

Explanation:

A real option is a choice made available to the managers of a company concerning business investment opportunities. It is referred to as “real” because it typically references projects involving a tangible asset instead of a financial instrument. Tangible assets are physical assets such as machinery, land, and buildings, as well as inventory.

A 'real option' is also a choice available to a company regarding an investment opportunity. The term 'real' means that it refers to a tangible asset and not a financial instrument. Examples of real options include determining whether to build a new factory, change the machinery and technology on a production line.

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3 years ago