Answer:
C) Decrease price and increase output.
Explanation:
The firm currently is selling at $10 per unit, but in order for it to maximize profit it must sell at a price that equals marginal cost, and that would be $6 per unit. At that point the demand curve and the marginal cost curve intersect.
All companies will always maximize their profits when the selling price = marginal cost.
Answer:
The attached file has the answer required.
Interest on notes payable will be a liability as it is accrued. It will still be accounted from the expenses however.
Services is a revenue stream that was not recorded so it will go to Accounts Receivable and Revenue.
Salaries unpaid will become a liability and an expense in the income statement.
