Answer:
a. Incremental cost of making the part $
Variable cost (50,000 units x $2.50) = 125,000
Attributable fixed cost = 50,000
Incremental cost 175,000
b. Incremental cost of buying the part from outside
= 50,000 units x $3.70
= $185,000
Explanation: The incremental cost of making the part is the total relevant cost of production, which involves variable cost and attributable fixed cost.
The incremental cost of buying the component refers to cost of buying the part from outside.
Answer:
The answer of the exercise is attached.
Explanation:
Bad debt expense is an expense account and expense accounts have debit balance. Whenever an expense account is to be increased, it is debited.
Allowance for doubtful debts is a contra asset account and contra asset accounts have credit balance. Whenever a contra asset accounts balance is to be increased, it is credited.
Therefore, to record the estimated uncollectibles, bad debt expense account is debited to book the expense and allowance for doubtful accounts is credited to reduce the balance of accounts receivable.
Answer:
A) Seasonal discount
Explanation:
A Seasonal discount is a discount that is applied in specific periods of the year. For example: Christmas season, halloween season, black friday season, etc.
In this example, the good is a christmas tree, which is obviously related to the christmas season, therefore, the discount apply on it is a seasonal discount, even if the discount in not applied in December but in July.
<span>Vinny might be able to force the completion of the project. If the two had a written agreement that has not been violated or made conditionally null, then Spud could be legally obligated to complete the project, dependent on the interpretation of the contract by the court.</span>
Answer:
D. Decrease
Explanation:
Monopolistic Competitive market structure includes many sellers selling related but differentiated (imperfect substitutes) of each other.
This market has free entry & exit, firms' partial control over price-based on differentiation but also market competition, imperfect knowledge-based on selling cost & claimed superiority of all firms' products over each other.
Eg : Cosmetic, Skin care products.
If new firms enter this market , the existing firms demand curve becomes more elastic (more responsive to price change) & demand decreases , shifts leftwards.