Answer: The correct answer is "D. Goods in Process and Factory Overhead."
Explanation: Direct labor: it is the labor consumed in the areas that are directly related to production. It is generated by the workers or operators of the company. It is part of the cost that is incorporated directly into the product. Therefore it is registered as goods in process.
Indirect labor: it is the labor consumed in the administrative areas of the company or that production staff that does not participate directly in the production of the good. As it is part of the cost that is indirectly incorporated into the product, it is considered factory overheads.
the price of summer cabins. as summer approaches, the equilibrium price of rental cabins increases, and the equilibrium quantity of cabins rented increases increase in demand.
When the price falls below the equilibrium price, the quantity demanded exceeds the quantity supplied, creating an excess demand (short supply) for the product. In other words, consumers want to buy more than producers are willing to sell. This mismatch between supply and demand drives up prices.
Price movements cause equilibrium movement along the supply curve. Such a movement is called a change in supply. Like changes in demand, changes in supply do not shift the supply curve. By definition, it is moved along the supply curve.
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Answer:
If effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.
Explanation:
A price floor can be described as a price control in which the minimum price to be charged for goods and services is imposed by a government or a group.
For a price floor to be effective and binding, it has to be set above the market or equilibrium price. This is because a price floor will neither be effective nor nonbinding when it set below the equilibrium price.
Any price above the equilibrium or market price creates or leads to excess supply. Excess supply is a situation whereby quantiy of commodity supplied is more than the quantity demanded of the commodity.
Based on the above explanation, if effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.
<span>This shows that the board has decided to re-invest the profits in the business instead of paying it to common shareholders. This is one of the drawbacks of owning common stock in comparison to preferred stock. Dividends and other company earnings are not always shared with the stockholder.</span>
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $40 each. The distributors’ margins are 25%. Mettel Products’ cost of goods sold is $10.00 each. Mettel’s total variable costs (including selling costs) are $15.00 per drive.
Selling price= 40/1.25= $32
A) Gross margin= 32 - 15= 17
%= 53%
B) Mettel is considering increasing its annual advertising spending from $75,000 to $150,000.
Break-even point= fixed costs/ contribution margin
Break-even points= 150,000/17= 8,824 units
C) Break-even points= 75,000/14= 5,357 units
