Answer:
Following are the solution to the given question:
Explanation:
Please find the graph image in th e attachment file.
In the question, it increases the manufacturing prices, which raises the corporation's expenditures, which increases the material production, mostly as a result of a decline in business production of materials, which will cause the aggregate demand through S to S' to be moved to the left.
Debits must = Credits, so if some one bought a $20 sofa, the credit would be the asses, more specifically the cash account because it goes down by $20 and the debit would also be the assets but the furniture, becasue it goes up by $20, 20=20 so debit=credit
Answer:
The order should be accepted based on incremental costs and revenues.
Explanation:
As only relevant costs must be considered, we can not account for depreciation. Furthermore due to slashed market demands, it is not viable to produce more than what is demanded thus calculating the new cost of per computer is as,
PC = Materials + Labor (Only direct incremental costs)
PC = 500 + 100 = $600/pc
This nets a profit per unit of
Profit = 650 - 600 = $50/unit
Thus this order should be accepted and 10,000 units should be produced as incremental costs are less than incremental revenues.
Answer:
1. Cash balance will decrease
2. Cash-basis net income will decrease
3. Accrual-basis net income will decrease
Explanation:
$900 was paid to the workers by the company in May for $600 work performed in April and $300 in May. If the company follows cash basis, then cash balance will reduce by $900. If the company follows accrual-basis, then cash balance will reduce by $300.
Cash basis net income will decrease by $900 while accrual basis net income will reduce by $300 as $600 would have been accounted in April.