Answer: An individual cartel member has an economic incentive to sell more than its quota, thus cheating on the cartel agreement. However, if all cartel members sell more than their quotas, the cartel price will fall, and profits will vanish
Explanation: A cartel is defined as group of businesses or nations that collude to limit competition within an industry or market. Thus, a major purpose of a cartel is to drive up price and profits thus restricting market output. This restriction however, requires cartel members to sell no more than their given quotas which provides individual cartel member with economic incentives to sell more than its quota resulting in cheating and a breach of cartel agreement. This leads to a fall in cartel price and vanishing profits should all members sell above their quotas which is a direct contradiction to the purpose of cartels.
Answer:
c. Ending inventory will be lower if Blake uses weighted average than if FIFO were used
Explanation:
To check which answer is correct, we simply evaluate each option step by step.
<u>Option A</u>
Gross margin is the difference between selling price and cost.
Under FIFO gross margin is $14. (32 -18 =14)
Under LIFO gross margin is $13. (32-19 = 13)
Thus statement is incorrect as gross margin is higher if FIFO is used.
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<u>Option B</u>
If FIFO is used, the dollar amount of ending inventory will be $19 as ending inventory will contain product purchased later that is at $19. In contrast, if LIFO is used, the dollar amount of ending inventory will be $18. Thus the statement becomes incorrect that it will be the same.
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<u>Option C</u>
The ending inventory under FIFO is $19.
The ending inventory under LIFO is $18
The endng inventory under AVCO or weighted average will be, 18+19 / 2 = 18.5
Thus the statement is correct as the ending inventory under weighted average $18.5 is lower than ending inventory under FIFO $19. So, C is the correct Answer.
Answer:
The correct answer is Underemployed.
Explanation:
Underemployment has among its meanings, the following:
The employment of workers with high skill levels, in those jobs where such skills are not required, such as the case of a trained doctor, who must also work as a taxi driver.
- Involuntary part-time of workers: In this case the workers who could and in any case want to start a full-time job, although they can only find part-time work. By analogy, the term is also used in regional planning to describe regions where economic activity rates are unusually low, due to lack of employment opportunities, training opportunities, or due to lack of services such as transportation, childcare, etc.
- Excessive personnel or hidden unemployment: this is the practice that occurs when companies or economy employ workers who are not fully employed. For example, workers who are not currently used to produce goods or services due to legal or social restrictions, or because the work is highly seasonal.
Answer:
Option (c) is correct.
Explanation:
Given that,
Budgeted unit sales for August = 4,600 units
Variable selling and administrative expense per unit = $7.30 per unit
Budgeted fixed selling and administrative expense = $51,980
Depreciation per month = $6,440
Total variable selling and administrative expense:
= Budgeted unit sales for August × variable selling and administrative expense per unit
= 4,600 × $7.30
= $33,580
Total fixed selling and administrative expense:
= Budgeted fixed selling and administrative expense - Depreciation per month
= $51,980 - $6,440
= $45,540
Total cash disbursements for selling and administrative expenses:
= Total variable selling and administrative expense + Total fixed selling and administrative expense
= $33,580 + $45,540
= $79,120