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3 years ago

8

Before setting your prices, it's wise to A. subtract your profit margin from your costs. B. research industry standards. C. memo

rize the formula for cost plus. D. ignore your competitors' prices.

2 answers:

Anit [1.1K]3 years ago

7 0

Answer:B

Explanation:

KiRa [710]3 years ago

6 0

Answer:

B

Explanation:

Research industry standards just toke the test.Good luck !

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Suppose trade between the United States and Canada results in a $100 billion increase in production of agricultural goods. This

MissTica

Answer:

D

Explanation:

The gain from the trade will be split between the two countries but the division may not be equal because the division of gain depend on several factors such demand and supply for goods as well as the price which we don't have the information about.

4 0

3 years ago

Sweet Catering completed the following selected transactions during May 2016: May 5: Received and paid electricity bill, $140 Ma

Alex73 [517]

Answer: (1) $5,290

(2) $3,470

Explanation:

Net Income from Accrual method:

= Served a banquet account - received and paid electricity bill + Received cash meals to customers - Accrued salary expense - Prepaid insurance expired

= $2,810 - $140 + $3,610 - $800 - $190

= $5,290

Net Income from Cash method:

= Received cash meals to customers - received and paid electricity bill

= $3,610 - $140

= $3,470

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3 years ago

Mario's, a pizza and pasta producer, experiences increasing opportunity cost. draw a production possibilities frontier for mar

Nezavi [6.7K]

<span>Unattainable points are outside the PPF. The PPF refers to the Production Possibilities Frontier. This is set by the economic standing of a country and a country is not able to perform and produce outside of their set PPF. Due to this, all unattainable points are located outside of the PPF. </span>

7 0

3 years ago

Below are transactions for Lobos, Inc., during the month of December. Calculate the amount of revenue to recognize in December.

Neporo4naja [7]

Answer:

Revenue recognized in Dec= $3200

Explanation:

Lets first understand the criteria for revenue recognition. According to the accruals concept of accounting, an entity is supposed to record revenues and expenses as soon as they are earned and incurred. An entity shouldn't wait until the revenue is received and expenses are actually paid. The accruals concept of accounting is also based on the matching principle which requires entities to match and record expenses with the revenue of the period in which they occur. Considering the two concepts mentioned above, we may classify these transactions for revenue recognition as follows;

a. Receipt of $1200 cash:

In this case Lobos Inc. has received the cash in advance and the services against this payment will be rendered next month, therefore, this transaction doesn't imply an earned revenue rather it's a liability for Lobos Inc until the services are actually rendered. No revenue is recognized in December.

b. Perform $900 of services:

Lobos Inc. will provide services to this customer and will receive payment in next month, however the services have been provided which implies Lobos Inc has earned the revenue, though not received it yet but still following the accruals concept, Revenue is recognized in December.

c. Perform $2300 of services:

Similarly, Lobos Inc. will render services and will receive the payment against these services in the month of Dec, therefore, Lobos Inc can recognize revenue in December.

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3 years ago

What is the present value of 10 equal payments of $22,500 to be made at the end of each year for the next 10 years? The annual i

Vanyuwa [196]

Answer:

a.

We use the formula for calculating present value of annuity to solve the question as followed:

(22,500/10%) x [ 1 - 1.1^(-10) ] = $138,253.

b.

The present value of the total severance package is calculated as:

120,000 cash paid at the beginning + Present value of $131,000 paid in one year time + Present value of 7 annuities paid at the end of each year starting from the end of this year = 120,000 + 131,000/1.06 + [ 29,500/6% x (1 - 1.06^(-7)) ] = $408,265.

c.

Option 1: to collect lump sum of $107,000 today will give present value of $107,00

Option 2: to collect seven equal $20,500 at the end of each year will give present value as calculated below by applying the present value formula for annuity:

(20,500/8%) x ( 1 - 1.08^-(7)] = $106,731.

d.

The present value of this investment is equal to:

Present value of the annuity made of 8 equal payments at the end of each year, $15,000 each + Present value of $150,000 receipt paid in 8 year time = (15,000/7%) x [1 - 1.07^(-8) ] + 150,000/1.07^(-8) = $176,871.

Explanation:

8 0

4 years ago