<u><em>A country is better off producing the goods and services that it has a comparative advantage supplying.</em></u>
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At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.
Answer:
Dr. Work in process $49,500
Dr. Material Quantity Variance $4,500
Cr. Raw material Inventory $49,500
Explanation:
First we need to calculate the Material usage variance
Standard Material = 5,500 cakes x 3 pounds = 16,500 pounds
Standard cost of Standard Material = 16,500 pounds x $3 = $49,500
Actual usage at standard cost = 16,650 pounds x $3 = $49,950
Material usage Variance = $49,950 - $49,500 = $450 unfavorable
When the actual cost incurred is more than the standard cost the variance is unfavorable.
Answer:
D : All options are correct
Explanation:
- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.
- @ Q = 500 units, Selling Price is set at SP = $35
- @ Q = 500 units, Buying Price is set at BP = $40
- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.
- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.
- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.
