True or false, patients can request a copy of billing records associated with their care

In the long run equilibrium, a monopolistic competitor will produce to the point at which A) actual average total costs are at t

Artemon [7]

Monopolistic competition is the economic market model with many sellers selling similar, but not identical, products. The demand curve of monopolistic competition is elastic because although the firms are selling differentiated products, many are still close substitutes, so if one firm raises its price too high, many of its customers will switch to products made by other firms. This elasticity of demand makes it similar to pure competition where elasticity is perfect. Demand is not perfectly elastic because a monopolistic competitor has fewer rivals then would be the case for perfect competition, and because the products are differentiated to some degree, so they are not perfect substitutes.

Monopolistic competition has a downward sloping demand curve. Thus, just as for a pure monopoly, its marginal revenue will always be less than the market price, because it can only increase demand by lowering prices, but by doing so, it must lower the prices of all units of its product. Hence, monopolistically competitive firms maximize profits or minimize losses by producing that quantity where marginal revenue equals marginal cost, both over the short run and the long run.

3 0

3 years ago

Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the c

Sergio [31]

Answer:

January:

Total overhead= $11,948

February:

Total overhead= $11,360

March:

Total Overhead= $13,302.5

Explanation:

Giving the following information:

Budgeted direct labor hours for the first 3 months of the coming year are:

January= 13,140

February= 12,300

March 15,075

The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,750 per month.

To calculate the total overhead for each month, we need to sum the total variable overhead and the fixed overhead. Total variable overhead is the result of applying the variable overhead rate multiplicated with the direct labor hour.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

January:

Total overhead= (0.70*13,140) + 2,750= $11,948

February:

Total overhead= (0.70*12,300) + 2,750= $11,360

March:

Total Overhead= (0,70*15,075) + 2,750= $13,302.5

3 0

3 years ago

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

irina [24]

Relevant Information:

The relevant information is as under:

Segmented income statements appear as follows:

Product Original Strawberry Orange

Sales 65,200 85,600 102,400

Variable costs (44,000) (77,200) (80,200)

Contribution margin 21,200 8,400 22,200

Fixed costs allocated (9,400) (12,000) (14,200)

Operating profit (loss) 11,800 (3,600) 8,000

Answer:

The product not be closed because it is generating net cash flows of ($3,060), which will generate loss for the organization. The better option would be to not abandoning the manufacturing of Strawberry.

Explanation:

Relevant costing says that any savings or losses are relevant if it satisfy following three conditions:

Is a cash flow.
Future related (Not arising due to Past bindings).
Differential or Incremental in nature.

Its crystal clear that any inflows and outflows that are considered would be cash in nature, not related to past events it must be arising as a consequence of taking the decision whose consequences are we considering now, I mean it must arise in future due to the decision made which are considering. The last condition is the concept of differential that lies in the heart of relevant costing and is easily understood by following the following steps:

Step 1: What are the losses or savings if we don't make decision?

Step 2: What are the losses or savings if we make the decision?

Step 3: The difference between step one and two is differential or incremental cost.

Here we learned that relevant cost arises if we take the decision (closing manufacturing of Strawberry), and it doesn't arises if we don't take the decision (not abandoning manufacturing of Strawberry).

Relevant costs associated with the decision are as under:

Step 1 Step 2 Step 3

Make Decision If we Don't Differential

Revenue loss (85,600) - (85,600)

Variable Costs Savings 77,200 - 77,200

Fixed costs Savings (W1) 5340 - 5340

Operating Profit (3,060)

Working1: Fixed costs Savings

Total Fixed costs =21400+12000+14200 = $35,600

The saving is 15% of the total fixed cost and is as under:

Fixed costs Savings = $35,600 * 15% = $5340

Note:

Kindly also practice the following question:

brainly.com/question/14423321

8 0

3 years ago

The graph represents the supply and demand curve for chocolates in the economy. Identify the price and quantity at which there w

Zielflug [23.3K]

Answer:

Equilibrium Price - 3

Equilibrium Quantity - 3

Explanation:

The price at which there will be equilibrium in the chocolate market is 3 units while the corresponding quantity is also 3 units.

The equilibrium price and quantity represents the price and quantity where the demand for a product is equal to the supply for the same product respectively.

In the graph, the point of intersection of the demand and the supply curve represents the equilibrium point. At this point, the price on the Y axis is 3 units while the corresponding quantity on the X axis is also 3 units.

3 0

3 years ago

EB13.

Harman [31]

Answer:

Journal entries to record the expenses incurred are given below.

Debit Factory Overhead Control Account $ 1300

Credit Utilities bills account $ 700

Credit Accumlated factory depreciation $ 400

Credit property tax payable $ 200

Journal entries to record the allocation of overhead at the predetermined rate of $1.50 per machine hour are given below.

Debit WiP process account $ 525

Credit Factory overhead applied account $ 525

(1.5 * 350 (machine hours))

5 0

3 years ago