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3 years ago

Why can deadweight loss occur when a price is below the equilibrium even when some consumers benefit from it?

1 answer:

7 0

When a shortage occurs, some consumers are fortunate enough to benefit from a lower price if they purchase the good or service before the price increase occurs.

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In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20

Anon25 [30]

Answer:

The journal entry would be as follows:

December 31, 2020 Debit Credit

Retained Earnings $9,400,000

Inventory $9,400,000

Explanation:

In order to prepare the journal entry to record the adjustment, we would have to calculate the amount of inventory with the following formula:

Amount of inventory=December 31, 2020, CPS’s inventories (FIFO)-31, 2020, CPS’s inventories (Average Cost)

=$38 million-$28.6 million

=$9.4 millions

Therefore, the journal entry would be as follows:

December 31, 2020 Debit Credit

Retained Earnings $9,400,000

Inventory $9,400,000

7 0

3 years ago

The ________ method of developing a pro forma income statement forecasts sales and values for the cost of goods sold, operating

Natalija [7]

Answer:

Percent of sales

Explanation:

A pro forma invoice contains a description of goods and services that is being provided by the supplier.

It is sent to the buyer before shipment of the product.

The pro forma invoice also contains information like the eight of the good and shipping cost.

The percentage of sale method of preparing pro forma invoice focuses on the amount of funding that is required to increase sales.

This method forecasts sales and values for the cost of goods sold, operating expenses, and interest expense that are expressed as a ratio of projected sales.

4 0

3 years ago

Read 2 more answers

Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.04 and estimates its variable cost to be $0.0

tankabanditka [31]

Answer:

Break-even point= 150,000 hangers

Explanation:

Giving the following information:

It charges $0.04 and estimates its variable cost to be $0.01 per hanger. Laguna’s total fixed cost is $4,500 per month.

To calculate the number of hangers we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 4,500 / (0.04 - 0.01)= 150,000 hangers

3 0

3 years ago

The attitude adopted by Calvin Coolidge that government should play a small role in business affairs is known as what?

nydimaria [60]

Answer:

3) laissez-faire

Explanation:

Laissez-faire is a French expression that means to let us do, or applied to economics, let the economy self regulate itself. It was not a doctrine developed by Adam Smith, but rather by French economists who supported the idea of no government intervention in the economy.

President Coolidge believed that the government should not interfere with businesses and that businesses themselves were able to create prosperity for the nation.

3 0

3 years ago

ABC Corporation has declared a rights offering to stockholders of record on Friday, December 10th. Under the offer, shareholders

VashaNatasha [74]

Answer:

The value of a right is $1

Explanation:

10 rights are needed to buy 1 share at the price of $19

Value of total rights = $29 - $19 =$10

Value of a right = $\frac{10}{10}$ = $1

4 0

3 years ago