Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value.

You, being a supplier of steak dinners, opened your steak house. Assume the market-clearing price is $20 and the market clearing

Shalnov [3]

Answer:

A) Shortage, B) Fall in Price

Explanation:

A] Market is at equilibrium where - downward sloping Market Demand (inversely related to price), & upward sloping Market Supply (directly related to price) - are equal & these curves intersect each other.

Above condition gives us equilibrium price & quantity.

If market price < equilibrium price, as given case 15 < 20. Then, supply being directly related to price is lesser, demand being inversely related to price is higher. So, there is a situation of excess demand, ie shortage (graphically denoted by distance between demand & supply curve at actual price below equilibrium price)

B] Dealers of hybrid vehicles increase imply increase in supply of these vehicles, rightwards shift in the supply curve. This creates excess supply ie surplus of them. It implies that competition among sellers lead to fall in price of these hybrid vehicles.

7 0

3 years ago

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat

ivann1987 [24]

Answer:

Cost per equivalent unit Materials = $ 2.82

Cost per equivalent unit Conversion = $2.65

Explanation:

Richards Corporation

1) We first calculate the fifo equivalent units .

FIFO Equivalent units can be calculated by the following.

Particulars Units % of Completion Equivalent Units

Mat. Con. Costs Materials C. Costs

Transferred out, 366,000 100 100 366,000 366,000

Ending inventory, 39,000 30 15 11700 5850

Total Weighted Equivalent Units 377,700 371,850

Less

Beginning Inventory: 98,000, 80% 20% 78,400 18000

FIFO Equivalent Units 299,300 353,850

2) We calculate the total costs

Direct Materials Conversion

Costs in beginning Work in Process -$55,200 $97,700

Costs incurred in October - $844,050 $937,300. 

Total Cost $ 899250 1035,000

3) In FIFO The cost per unit is based only on the current costs and current period unit productions.

Materials = $844050/299300= $2.82

Conversion = 937,300 / 353,850 = 2.6488= $2.65

8 0

3 years ago

Paul Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries

ololo11 [35]

Answer:

wages expense 212,000 debit

Income tax payroll payable 42,400 credit

FICA payable 16,900 credit

insurnace premium payable 4,000 credit

wages payable 148,700 credit

--to record wages to employees--

payroll tax expense 19,400 debit

FICA payable 19,400 credit

--to record employeed payroll taxes--

Income tax payroll payable 42,400 debit

FICA payable 33,800 debit

insurnace premium payable 4,000 debit

Cash 80,200 credit

--to record payment to gevernment agencies--

Explanation:

We have to deduct from the wages the employee deductions

the remaining is the wages payable

Then, we record the same amount of fica as expense as we, the employer are paying them

Then we debit all the liaiblities which arise from the employees and credit cash for the total amount

6 0

3 years ago

Why do complex decisions often raise ethical considerations for the entrepreneur?

dlinn [17]

Complex decision often needed to be done by cutting off several corners for the most efficient decision to be enactdd.
For example, during the period when business slowed down, one of the most efficient method to maintain the level of profit is simply by cutting down excessive amount of empployees, but that action is considered unethical

3 0

3 years ago

Bart wants to know whether skateboarders have faster reactions than non-skateboarders. He recruits 25 skateboarding teenagers, a

denpristay [2]

Answer:

Cross Sectional Quasi-Experiment

Explanation:

Based on the information provided within the question it can be said that the type of design that Bart is using in this scenario is a Cross Sectional Quasi-Experiment. This is a type of experiment in which two or more different types of groups are compared at the same time in order to analyze the results and come to a conclusion of the experimental variable that is being researched. Which in this case would be "who has better reaction time.".

7 0

3 years ago