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3 years ago

If the government implements a binding price ceiling on insulin, this will

Business

1 answer:

NikAS [45]3 years ago

4 0

Answer:

c. encourage manufacturers to produce and sell more insulin to increase their profits.

Explanation:

In a binding price ceiling, the government will force companies to set a certain price below the market equilibrium.

When this happen, the amount of profit margin that the company get from sales is also decreased. To handle this, one of the things that company can do to maintain their total profit is to increase the total sales, This will be beneficial for the customers since the product have higher availability with typically lower price.

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A product whose eoq is 40 units experiences an increase in the annual holding cost from $10 per unit to $90 per unit. The revise

FromTheMoon [43]

A product whose EOQ is 40 units experiences an increase in the annual holding cost from $10 per unit to $90 per unit. The revised EOQ is nine times as large.

The Economic Order Quantity (EOQ) is the ideal order quantity that a business should purchase to minimize inventory costs such as inventory holding costs, out-of-stock costs, and order costs.

Economic Order Quantity (also known as Economic Purchase Quantity) is the order quantity that minimizes the total storage and ordering costs in inventory management. One of the oldest classic production planning models. Wikipedia

Economic Order Quantity or EOQ, also known as "Optimal Lot Size", is designed to help businesses determine the optimal order quantity to minimize logistics costs, storage space, shortages, and excess inventory costs calculated. The formula is: EOQ = [2(setup cost)(demand rate)] / square root of holding cost.

Learn more about EOQ here

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3 0

1 year ago

Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for

stellarik [79]

Answer:

Winslow Inc.

a. No. I do not agree with management's decision and conclusions. Eliminating the running shoes line increased the company-wide loss to $112,600 from a profit of $7,900.

b. Variable Costing Income Statements:

1 Cross Training Golf Shoes Running Shoes Total

2 Revenues $850,000 $700,000 $635,000 $2,185,000

3 Variable costs:

Cost of goods sold 284,500 248,400 298,500 831,400

Selling and administrative 293,100 175,500 216,000 684,600

Total 577,600 423,900 514,500 1,516,000

4 Gross profit $272,400 $276,100 $120,500 $669,000

5 Fixed costs:

Cost of goods sold 128,500 90,300 120,500 339,300

Selling & administrative 95,900 82,400 143,500 321,800

Total 224,400 172,700 264,000 661,100

6 Income (Loss) from $48,000 $103,400 $(143,500) $7,900

c. Eliminating the line only eliminated the variable costs of goods sold and selling and administrative expenses. The fixed costs were not changed with the elimination. Therefore, eliminating the running shoes line increased the company-wide loss to $112,600 from a profit of $7,900.

Explanation:

a) Data and Calculations:

Winslow Inc.

Product Income Statements—Absorption Costing

For the Year Ended December 31, 20Y1

1 Cross Training Golf Shoes Running Shoes Total

2 Revenues $850,000 $700,000 $635,000

3 Cost of goods sold 413,000 338,700 419,000

4 Gross profit $437,000 $361,300 $216,000

5 Selling & administrative

expenses 389,000 257,900 359,500

6 Income (Loss) from $48,000 $103,400 $(143,500)

1 Cross Training Golf Shoes Running Shoes Total

2 Revenues $850,000 $700,000 $635,000 $2,185,000

3 Variable costs:

Cost of goods sold 284,500 248,400 298,500 831,400

Selling and administrative 293,100 175,500 216,000 684,600

Total 577,600 423,900 514,500 1,516,000

4 Gross profit $272,400 $276,100 $120,500 $669,000

5 Fixed costs:

Cost of goods sold 128,500 90,300 120,500 339,300

Selling & administrative 95,900 82,400 143,500 321,800

Total 224,400 172,700 264,000 661,100

6 Income (Loss) from $48,000 $103,400 $(143,500) $7,900

Eliminating the running shoe line:

1 Cross Training Golf Shoes Total

2 Revenues $850,000 $700,000 $1,550,000

3 Cost of goods sold:

Variable costs 284,500 248,400 532,900

Fixed costs 128,500 90,300 339,300

Total 413,000 338,700 872,200

4 Gross profit $437,000 $361,300 $677,800

5 Selling & administrative expenses:

Variable costs 293,100 175,500 468,600

Fixed costs 95,900 82,400 321,800

Total 389,000 257,900 790,400

6 Income (Loss) from $48,000 $103,400 ($112,600)

3 0

3 years ago

The marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of goo

tensa zangetsu [6.8K]

Answer:

B. business marketing

Explanation:

Business marketing -

It is the practice in the marketing by the company or by an individual , it enables to sell the services or goods to some other organisations or company that can resell them , which can be also be used by the company to create a new product or service or to re - sell it as it is , is known as business marketing .

Hence , from the question ,

The correct term according to the given information of the question is B. business marketing .

8 0

3 years ago

January 1, 2021, Smith Co. purchased common stock of North Company for $500,000. North Company has common stock outstanding of $

wel

Answer:

Fair Value adjustment $5,000 Dr.

Unrealized holding gain-net income $5,000 Cr.

Explanation:

Common stock purchase price = $500,000

North company outstanding stock = $10,000,000

5% stock of outstanding stock purchased :

(5/100) * $10,000,000

0.05 * 10,000,000

= $500,000

Fair value of investment = $505,000

Adjustment in fair value = $505,000 - $500,000 = $5000 ( Debit)

Unrealized holding gain-net income = $505,000 - $500,000 ( Credit)

6 0

3 years ago

Which one of the following is the financial statement that summerizes a firms revenue and expenses over a period of time?

Aneli [31]

Answer:

income statement is correct

5 0

4 years ago