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Neko [114]
3 years ago
12

The smartphone market is in​ long-run equilibrium. Then the demand for smartphones increases. Describe what happens in the marke

t for smartphones. In the short​ run, firms will​ _______.
A. incur an economic loss
B. continue to break even
C. make an economic profit
Business
1 answer:
mr_godi [17]3 years ago
6 0

Answer:

C. make an economic profit

Explanation:

Demand increase means the shifting of the demand curve to the right. At the same quantity new price will be higher than old price.

Regardless of whether a firm choose to produce more phones (if marginal cost increases more than marginal revenue they may choose not to) they can earn more revenue at the same quantity produced and make an economic profit.

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Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $3
Slav-nsk [51]

Answer:

a.  $2.4

b. $10,000 under-applied

c. Cost of goods sold A/c Dr $10,000

      To Manufacturing overhead    $10,000

Explanation:

a. The computation of the manufacturing overhead rate is shown below:

Manufacturing overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $300,000 ÷ 125,000 hours

= $2.4

(B) Now we have to find the actual overhead which equals to

= Actual direct labor-hours × predetermined overhead rate

= 130,000 hours × $2.4

= $312,000

So, the ending overhead equals to

= Actual manufacturing overhead - actual overhead

= $322,000 - $312,000

= $10,000 under-applied

c. The adjusting entry is shown below:

Cost of goods sold A/c Dr $10,000

      To Manufacturing overhead    $10,000

(Being the under-applied overhead is adjusted)

5 0
3 years ago
To compete with other organizations in the industry and to boost employee morale, Mangosanta, a fashion designing company, insta
Blizzard [7]

Answer:

This scenario best illustrates organizational innovation

Explanation:

5 0
3 years ago
Read 2 more answers
Planned investment spending will decrease if: the interest rate rises. consumer expectations about wealth grow more optimistic.
Dima020 [189]

Answer:

the interest rate rises.

Explanation:

When interest rate increase, borrowing money from the banks become expensive. Individuals and companies will not be able to borrow money to finance investments as the interest rates would be discouraging. When the interest rates are high, saving with banks becomes more attractive. Interests earned of deposits become more appealing than the rate of return of an investment project.

Investments increase when the economy is doing well. If real GDP is to increase or consumers are more optimistic, it means the economy is doing well. Firms operate at near capacity if the economic conditions are favorable. In these three situations, investments will increase, not decrease.

4 0
2 years ago
Income Summary has a credit balance of $12,000 after closing revenues and expenses. The entry to close Income Summary is credit
Reptile [31]

Answer:

debit Income Summary $12,000; credit Retained Earnings $12,000.

Explanation:

Based on the information given The entry to close Income Summary is:

Debit Income Summary $12,000

Credit Retained Earnings $12,000

(To close Income Summary)

6 0
3 years ago
Currently Baldwin is paying a dividend of $19.69 (per share). If this dividend were raised by $3.64, given its current stock pri
o-na [289]

Answer:

$23.33

Explanation:

Calculation for the Dividend yield for Baldwin

Using this formula

Dividend yield = Dividend per share + Increase in Dividend

Let plug in the formula

Dividend yield = $19.69+$3.64

Dividend yield =$23.22

Therefore the Dividend yield will be $23.22

3 0
3 years ago
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