Answer:
Option (B) is correct.
Explanation:
Equivalent units of production(EUP) - Materials:
= Transferred out + Ending balance
= 10,451 units × 100% + 3,483 units × 100%
= 10,451 + 3,483
= 13,934
Equivalent units of production(EUP) - conversion:
= Transferred out + Ending balance
= 10,451 units × 100% + 3,483 units × 36%
= 10,451 + 1,253.88
= 11,704.88
Material cost = 
Material cost = 
= 73,157
Conversion cost = 
Conversion cost = 
Conversion cost = 
= 53,715
Therefore,
Total cost of units completed during the period(10,451 units):
= Material cost + Conversion cost
= 73,157 + 53,715
= 126,872
Answer:
A).price will fall and quantity will fall
Explanation:
A reduction in demand causes the demand curve to shift to the left. The demand for a good may decrease due to a fall in incomes( assuming a normal good), a rise in the price of a substitute commodity, increases in the price of a compliment product, or changes in customer preferences.
Reduction in demand means a product is less desirable in the market. Its price will fall as sellers try to woe buyers to purchase it. The quantity supplied will also decline as few customers will be willing to buy the product.
Answer:
B. Firm A engaged in predatory pricing.
Explanation:
Since Firm A and B are the only two companies that sell this good
Firm A decided to price its subscriptions below average variable cost that is it lowered it's prices which made Firm B to also lower it's own, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.
Based on this, Firm A engaged in predatory pricing.
Predatory pricing is a marketing or pricing strategy that has to do with lowering the cost of goods and services for a short-term, in order to make competitors lower their price, making them to go bankrupt in the process and thereby exiting the market.
Answer:
The relevant costs to go into this schedule of cost of contract services performed will be those that are directly related to contract work.
Administrative costs are not to be included in the schedule but will instead go to the Income statement.
