Answer:
George
Explanation:
Both price ceilings and price floors can cause economic shortages, because they are government imposed distortions to prices. In other words, they do not allow prices to adjust supply and demand.
George knows this because he is probably an economist, and that is why he does not recommend neither price ceilings nor price floors.
Answer:
The Commercial Products Division's Residual income in January is $ 37,400.
Explanation:
Residual income (which is a Managerial Accounting concept) is what remains from a departments income after the opportunity cost of the capital that it deploys has been removed.
The formula is given below:
Residual Income (RI) = Controllable Margin (CM) - Required Rate of Return (RRR) × Average Operating Assets (AOR)
Step I:
Insert all the given factors
RI = 148,000 - (14% x 790,000)
RI = 148,000 - 110600
Therefore, residual income RI = $ 37,400
Cheers!
Answer: Contribution margin is 1,650
Explanation:
Contribution margin is calculated with the Net sales minus de Variable cost.
Considering that the sales price per sandwich is 5.25 and the quantity sold was 600 sandwiches the Net sale amount is 3,150.
To calculate the variable cost you use the variable cost per sandwich and the quantity sold, the total variable cost is 1,500.
The contribution margin resulted in 1,650 (3,150 minus 1,500), with this amount the fixed cost per month could be covered.
Answer:
The correct answer is option B.
Explanation:
In the perfect co petition firm is a price taker. Firms do not decide price. Price is determined by demand and supply intersection. Firms face a horizontal demand curve. They can only adjust the quantity they supply.
In a perfect competition, if the price is not able to cover the average variable cost, it means that the firm will be incurring losses. The firm will thus shutdown and stop production.
Troubleshooting is a way to minimize technical problems with the computer.