Answer:
Since there is no loss occur from these sales and rather $15 per pair is profit from the sale of boots. So it should be accepted.
Explanation:
Now the calculation of differential income or loss per pair of boots from selling to the organization,
Explanation:
Control
Entrepreneurs naturally have long-term vision and find focus on quarterly profits frustrating
As an owner of a privately held company, you have complete authority over operational decisions and don’t have to worry about shareholder expectations and interference. Shareholders in public companies are often focused on current earnings and they can exert tremendous pressure to increase earnings in the short term in order to increase the value of their stock.
Right of Non-Disclosure
Privately held companies are not required to disclose details about their operations that could potentially benefit competitors. The SEC has stringent disclosure requirements for public companies, including the details of investor conferences, research analyst meetings and shareholder discussions.
Confidentiality
Information such as executive compensation, legal settlements and other sensitive information cannot be kept confidential in public companies. Compliance with these SEC disclosure regulations can expose information that you would prefer to keep confidential.
The United States is considered the world's premier free-market economy. Its economic output is greater than any other country that has a free market. 1 The U.S. free market depends on capitalism to thrive. The law of demand and supply sets prices and distributes goods and services.
Answer:
The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200
Explanation:
Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately
The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account
Given
Physical Inventory Account= $63,000
Merchandise Inventory Account= $66200
Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account
Adjusting Entry = $66,200 - $63,000
Adjusting Entry = $3200
Units to be produced in February is calculated as -
Units to be produced in February = February sales + Ending inventory of February - Beginning inventory
February sales = 4,600 units
Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units
Beginning inventory - 25 % * Sales of February = 25 % * 4,600 unit = 1,150 units
Units to be produced in February = 4,600 units + 1,325 units - 1,150 units
Units to be produced in February = 4,775 units
Answer:
b. lower price than the pre-subsidy equilibrium, and buyers pay a lower one.
Explanation:
A subsidy is a governments intervention in the form of cash or tax cuts. The government offers subsidies to producers to motivate them to produce more or to lower their cost of production. As a result, there will be more products in the market or goods will be cheaper.
Equilibrium price refers to the price determined by the forces of supply and demand. It is the intersection of the demand and supply curve. It is the price that buyers are willing to pay for a certain quantity of a product; all other factors held constant.
Should a producer receive a subsidy, It will lower his cost of production. The producer's output will cost less. He can afford to offer sellers a lower price as a result of the subsidy. The traders will be able to sell the products in the market at a low price compared to a situation with no subsidy.
