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lawyer [7]
3 years ago
7

In a perfectly competitive market, the process of entry and exit will end when (i) accounting profits are zero. (ii) economic pr

ofits are zero. (iii) price equals minimum marginal cost. (iv) price equals minimum average total cost.
Business
1 answer:
coldgirl [10]3 years ago
4 0

Answer:

 (ii) economic profits are zero

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

I hope my answer helps you

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Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job intervi
pav-90 [236]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Inventory information:

DM:

Beginning = $59

Ending= $ 66

Direct materials purchased 5,260

Work-in-process

Beginning= $87

Ending= $79

Finished goods

Beginning= $998

Ending= $1,024

Other information:

Administrative costs $ 3,200

Depreciation (Factory) 3,330

Depreciation (Machines) 4,730

Direct labor 7,600

Indirect labor (Factory) 1,780

Indirect materials (Factory) 590

Property taxes (Factory) 240

Selling costs 1,180

Sales revenue 35,610

Utilities (Factory) 640

1) We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Beginning work in progress inventory= 87

Direct materials= 59 + 5620 - 66= 5,613

Direct labor= 7,600

Factory overhead=Depreciation (Factory) + Depreciation (Machines) +  Indirect labor (Factory) + Indirect materials (Factory)  + Property taxes (Factory) + Utilities (Factory)= 3,330 + 4730 + 1780 + 590 + 240 + 640= $11,310

Ending work in progress=79

Cost of manufactured period=87+5613+7600+11310-79= $24,531

Cost of goods sold (COGS)= Beginning Inventory+Production during period−Ending Inventory

CGOS= 998 + 24531-1024= $24,505

B)

Revenue= 35610

COGS= 24505 (-)

Gross profit= $11,105

Administrative cost= 3200

Selling costs= 1180

Total period costs= 4380 (-)

EBITDA= 6725

5 0
2 years ago
Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions fo
makkiz [27]

Answer and Explanation:

Ferris Company

1. Average cost periodic

Dollars $48,000+$ 105,000

= $153,000

Units $11,000+$6,000

= $17,000

153,000 / 17,000 = $9.00 Cost per unit

Cost of Goods Sold:

9,000 units × $9.00= $81,000

Ending Inventory:

8,000 units × $9.00= $72,000

2. Average cost perpetual Jan 5th sales

Dollars 48,000

Units 6000

48,000 / 6,000 = $8.00 Cost per unit

Cost of goods Sold:

3,000 units × $8.00= $24,000

Ending Inventory:

3,000 units × $8.00= $24,000

3. Average cost perpetual Jan 12th sales

Dollars 69,000

Units 8000

69,000 / 8,000 = $8.625 Cost per unit

Cost of Goods Sold:

2,000 units × $8.625

= $17,250

Ending Inventory:

6,000 units × $8.625

= $51,750

4. Average cost perpetual Jan 20th sales

Dollars 60,000+51,750

=111,750

Units 6000+6000

=12,000

111,750 / 12,000 = $9.3125 Cost per unit

Cost of Goods Sold:4,000 units ×$9.3125= $37,250

Ending Inventory:8,000 units × $9.3125= $74,500

Summary of Average Cost Perpetual

Cost of Goods Sold:

Jan 5 3,000 units= $24,000

Jan 12 2,000 units= 17,250

Jan 20 4,000units = 37,250

Total 9,000units = $78,500

Summary of Results

Cost ofGoods Sold EndingInventory

FIFO, Periodic $ 75,000 $78,000

LIFO, Periodic$87,000 $66,000

LIFO, Perpetual $82,000 $71,000

Average Cost, Periodic $81,000 $72,000

Average Cost, Perpetual $78,500 $74,500

8 0
2 years ago
The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D
sergey [27]

How many shares were authorized?

Number of shares authorized are 4,000,000

--------

How many shares were issued?

Number of shares issued are 2,080,000

--------

How many shares are outstanding?

Number of shares outstanding = Number of shares issued - Numberof shares repurchased

Number of shares outstanding = 2,080,000 - 80,000

Number of shares outstanding = 2,000,000

--------

What is the balance of the Common Stock account?

Balance of common stock = Number of shares issued * Parvalue

Balance of common stock = 2,080,000 * $1

Balance of common stock = $2,080,000

--------

What is the balance of the Treasury Stock account?

Balance of treasury stock = Number of shares repurchased * Priceper share

Balance of treasury stock = 80,000 * $25

Balance of treasury stock = $2,000,000

--------

2)

June 12:  Issued 50,000 shares of $3 stated value common stock for cash of $250,000.

Cash; 250,000

Paid-In Capital in Excess of Par--Common Stock 50,000 x 3 = 150,000

Common Stock: 100,000

July 11:  Issued 2,000 shares of $100 par value preferred stock for cash at $108 per share.

cash: 2000 x 108 = 216,000

preffered stock : 2,000 x 100 = 200,000

Paid-In Capital in Excess of Par--Preferred Stock : 16,000

Nov. 28: Purchased 2,000 shares of treasury stock for $10,000.

Treasury Stock 10,000

Cash 10,000

6 0
3 years ago
4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Pro
NISA [10]

Answer:

Net operating income will be $ 19630 ( greater ¢ ) if the ( underapplied ¢ J overhead is allocated among work in process, finished goods, and cost of goods sold rather than closed directly to cost of goods sold.

Explanation:

(Round your intermediate calculations and percentage values to 2 decimal places and final answers to the nearest dollar amount. Input the amount as positive value. Omit the "$" sign in your response.)

4 0
3 years ago
When I but a what I'm loaning money to an organization
PSYCHO15rus [73]
Bussiness company house idk
5 0
3 years ago
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