Answer:
The correct answer to the following question is option A) charging slightly lower price and raising production .
Explanation:
A cartel can be defined as a group of firms , that join forces together to decide what level of output should be produced and at what prices they should be sold at. A cartel generally forms in oligopoly market where there are few firms in the market and they all have significant share in the market.
Reason why firms join forces together is because they want to have more dominant position in the market and increase the market power. So these type of cartels forms a monopoly n the market and earn high profits. But there are always chance of firms cheating each other in market, by either increasing the production or decreasing the price by a small percent, which will allow them to earn more profits.
Amount of interest expense on 30th June 20X1= Carrying Amount of Bond*Effective Interest Rate (For 6 Months)
=$940000*5/100
=$47000
Contractual Interest of the bond=Face Value*Contractual Interest
=1000000*4/100
=$40000
Thus, Carrying Amount of Bond=Carrying Amount|+Interest Expense-Interest Paid
Carrying Amount as on 30th June=940000+47000-40000
Carrying amount as on 30th June=$947000
Amount Paid to Redeem Bonds =$1020000
Gain/(Loss) on Redemtion of Bonds=Face Value-Amount Paid to Redeem Bonds
Loss on Bonds=-$73000
Answer:
The sales budget is prepared below. See table below.
Explanation:
<em>A sales budget shows the expected revenue and units to be sold for a forth coming accounting period. The sales budget for Patrick Inc would look as follows:</em>
Sales budget
Month Units Revenue($)
January 41,000 1,435,000
February 38,000 1,330,000
March 50,000 1<u>,750,000</u>
<u>4,515,000</u>
Note the revenue per month is determined by multiplying the unit to be sold by the price per unit of $35
Answer:
True
Explanation:
This is probably one of the greatest issues that cartels around the world face, since their agreements are difficult to maintain because it is very difficult to control the price and output policies of its members.
Even the largest cartel in the world, the Organization of the Petroleum Exporting Countries (OPEC), has problems when it comes to monitoring the petroleum output of its members. When some countries need more money they just increase their petroleum production even if the rest of the cartel doesn't agree with it.
