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Serhud [2]
3 years ago
8

A pencil manufacturer is in a perfectly competitive market. The firm can sell as much as it wants at a price of $1.50 per pencil

. At some production levels, its average variable costs are less than $1.50, but there is no production level where its average total cost is equal or less than $1.50. What would be your recommendation to the pencil manufacturer? a. Increase production to decrease fixed costs per unit. b. Exit the business immediately. c. Continue production both in the short run and in the long run. d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..
Business
1 answer:
Ierofanga [76]3 years ago
3 0

Answer:

d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..

Explanation:

Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.

Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.

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In 2009, the federal government created a program called cash for clunkers whereby consumers could trade in a less efficient car
alexandr1967 [171]

well to be honest man i dont know

7 0
3 years ago
On July 28, Vent Corp. sold $500,000 of 4%, eight-year subordinated debentures for $450,000. The pur­chasers were issued 2,000 d
KengaRu [80]

Answer: Vent should record $70,000

Explanation:

The requirement is to determine the amount of discount on the debentures that Vent should record at issuance.

ASC Topic 470 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the bonds and the warrants based upon their relative fair values at the time of issuance.

In this case, the fair value of the bonds is not known, but the fair value of the warrants is $10 per warrant. Thus, the total fair value of the warrants is $20,000 ($10 × 2,000 warrants). The fair value of the debentures can be estimated to be $430,000 ($450,000 total proceeds – $20,000 fair value of warrants). The face value of the bonds $500,000 less the fair value of the bonds of $430,000 equals the bond discount of $70,000.

6 0
3 years ago
The balance sheet category "Intangible Assets" includes:
AnnyKZ [126]

Answer:

b. patents, trademarks, and franchises. 

Explanation:

Intangible assets are assets that aren't physical, they cannot be seen.

Examples of intangible assets are goodwill, patents, trademarks, and franchises. 

8 0
3 years ago
A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6;
morpeh [17]

Answer:

a. Inventory is sold for $608,400.

gain on sale of inventory = $608,400 - $537,600 = $70,800

allocation of gain:

Kendra 1/2 x $70,800 = $35,400

Cogley 1/3 x $70,800 = $23,600

Mei 1/6 x $70,800 = $11,800

Dr Cash 608,400

    Cr Inventory 537,600

    Cr Gain on sale of inventory 70,800

Dr Gain on sale of inventory 70,800

    Cr Kendra, capital 35,400

    Cr Cogley, capital 23,600

    Cr Mei, capital 11,800

Dr Accounts payable 258,000

    Cr Cash 258,000

Dr Kendra, capital 112,100

Dr Cogley, capital 196,175

Dr Mei, capital 146,025

    Cr Cash 454,300

b. Inventory is sold for $469,200.

loss on sale of inventory = $469,200 - $537,600 = -$69,400

allocation of loss:

Kendra 1/2 x $68,400 = $34,200

Cogley 1/3 x $68,400 = $22,800

Mei 1/6 x $68,400 = $11,400

Dr Cash 469,200

Dr Loss on sale of inventory 68,400

    Cr Inventory 537,600

 

Dr Kendra, capital 34,300

Dr Cogley, capital 22,800

Dr Mei, capital 11,400

    Dr Loss on sale of inventory 68,400

Dr Accounts payable 258,000

    Cr Cash 258,000

Dr Kendra, capital 42,400

Dr Cogley, capital 149,775

Dr Mei, capital 122,825

    Dr Cash 315,100

c) c. Inventory is sold for $358,800 and any partners with capital deficits pay in the amount of their deficits.

loss on sale of inventory = $358,800 - $537,600 = -$178,800

allocation of loss:

Kendra 1/2 x $178,800 = $89,400

Cogley 1/3 x $178,800 = $59,600

Mei 1/6 x $178,800 = $29,800

Dr Cash 358,800

Dr Loss on sale of inventory 178,800

    Cr Inventory 537,600

 

Dr Kendra, capital 89,400

Dr Cogley, capital 59,600

Dr Mei, capital 29,800

    Dr Loss on sale of inventory 178,800

Dr Cash 12,700

    Cr Kendra, capital 12,700

Dr Accounts payable 258,000

    Cr Cash 258,000

Dr Cogley, capital 112,975

Dr Mei, capital 104,425

    Dr Cash 217,400

   

d. Inventory is sold for $298,800 and the partners have no assets other than those invested in the partnership.

loss on sale of inventory = $298,800 - $537,600 = -$238,800

allocation of loss:

Kendra 1/2 x $238,800 = $119,400

Cogley 1/3 x $238,800 = $79,600

Mei 1/6 x $238,800 = $39,800

Dr Cash 298,800

Dr Loss on sale of inventory 238,800

    Cr Inventory 537,600

 

Dr Kendra, capital 119,400

Dr Cogley, capital 79,600

Dr Mei, capital 39,800

    Dr Loss on sale of inventory 238,800

Dr Cogley, capital 28,467

Dr Mei, capital 14,233

    Cr Kendra, capital 42,700

Dr Accounts payable 258,000

    Cr Cash 258,000

Dr Cogley, capital 64,508

Dr Mei, capital 80,192

    Dr Cash 144,700

6 0
3 years ago
At which stage of new product planning does the management select the marketing campaign, identify regions to cover, and decide
denpristay [2]
The answer for your question is B
8 0
2 years ago
Read 2 more answers
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