The Christmas tree farm would respond by:
- In the short run, producers are going to earn profits and also increase their supply of the product.
This is what usually happens whenever there is an increase in the prices of goods in the supply side of the market.
As the prices would go up, the producers would want to take advantage of the increases to make as much gain as they can from the market.
This is only short term profit. Therefore the supply is going to be inelastic. The demand is only going to available for a short while.
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Answer:
Explanation:
Being a juice producer, for which the raw material is oranges, Coolmist has to keep an eye on the prices of oranges. To protect herself from an increase in the cost of oranges, the financial engineering strategy that would be most beneficial to her is that she should buy in-the-money calls on oranges so that she will have an option to buy the oranges at the pre-decided strike price of the call option.
By doing the above, she would be protected against the price hike.
Answer: The increase value of the house in thousands dollars will be $23400
Explanation:
In this scenario, Things to be note are:
(1) only the bathroom number has an increase of 1.
(2) the remaining regressors are the same.
(3) Initial price and the current price only differ in BATH
Therefore,
23.4(BATH+1) - 23.4BATH = 23.4
Hence, the increase value of the house in thousands dollars is $23400
Answer:
$552,800
Explanation:
The computation of the total period costing under variable costing is shown below:
As we know that
Period Cost = Total Variable Selling and Administrative Cost + Fixed Manufacturing Overhead + Fixed Selling and Administrative Cost
where,
Total Variable Selling and Administrative Cost is
= Variable Selling and Administrative per unit × Unit Sold
= $9 × 8,800
= $79,200
The fixed manufacturing overhead is $297,600
And, the fixed selling and admin cost is $176,000
So, the total period cost is
= $79,200 + $297,600 + $176,000
= $552,800
Answer:
zero
Explanation:
The sale is made downstream, from the investor company to the investee.
Also, is important to notice Prince hasn't controlling interest, it should has a subtancial participation on Watkinds but the mayority fothe shares are from third parties.
Therefore, there is no unrealized gross profit to defer as the sale was made between different entities.