Answer:
The correct answer is letter "B": Profit maximization.
Explanation:
Top executives are in charge of decision-making in companies. The path the firm will take depends on them. Their ultimate goal is always to maximize the profits of a firm. For such a thing to happen several accounting and operations analysis is conducted to make adjustments on production or engage in the manufacturing of new goods.
An ethical dilemma arises when <em>profit maximization</em> implies affecting others through pollution or the manufacturing of products that could be somehow risky. Managers in most cases would prefer to cut the costs of production but they must find a balance between generating more revenue and fulfilling the minimum quality requirements so that the goods or the production of them does not put others at risk.
Answer:
$78,199
Explanation:
If the market price of common stock is $165 per stock, then selling 500 common stocks should = $82,500
If the market price of preferred stock is $230 per preferred stock, then selling 100 preferred stocks should = $23,000
If we add both we would get $105,500. If we want to allocate the proceeds proportionally according to their market prices:
common stocks = ($82,500 / $105,500) x $100,000 = $78,199
preferred stocks = ($23,000 / $105,500) x $100,000 = $21,801
the journal entries should be:
- Dr Cash account 78,199
- Cr Common Stock account 5,000
- Cr Capital Paid-in Excess of Par Value (Common Stock) account 73,199
- Dr Cash account 21,801
- Cr Common Stock account 10,000
- Cr Capital Paid-in Excess of Par Value (Preferred Stock) account 11,801
Answer:
1a. Predetermined overheard rate is $20.8
1b. Product cost for each product:
Xactive ($) Pathbreaker ($)
<u> 113.72 86.4</u>
Explanation:
1(a)
Predetermined overheard rate is calculated with formula:
<u>Budgeted Cost</u>
Activity Level
For Rocky Mountain:
= <u>$2,687,360</u>
129,200
= $20.8
1 (b) Product cost involves the total cost incurred directly as a result of making a product. Product cost is calculated by adding direct material cost, direct labour cost and manufacturing overheard together.
Product cost
Xactive Pathbreaker
Direct material 65.60 51.80
Direct labour cost 19.00 13.80
Manufacturing overheard($20.8) <u>29.12 20.8</u>
<u>113.72 86.4</u>
<u />
Answer:
$400
Explanation:
In the case when the income would be increased by $1,000 per month so the spending on consumption goods would also be increased by 40% here we assume the 40%
So,
= $1,000 × 40%
= $400
Therefore based on the above assumption, the spending on consumption goods would be increased by $400
Answer:
C. The price of eight AA batteries increases from $3.50 to S3.95 a set.
Explanation:
A product's price change is the sole reason for movement along the supply curve. The supply curve demonstrates the relationship between the price and the supply of a product. As per the law of supply, suppliers will supply more at higher prices.
A supply curve shows the volume that supplies will be ready to supply at different prices. An increase or decrease in price will cause the quantity of supply to change, as indicated by movement along the supply curve.
