Answer:
The correct answer is option D.
Explanation:
Sunk costs can be defined as those costs which already been incurred and cannot be recovered anymore. These costs are excluded from business decision making.
It is can be referred to as a cost that is no longer relevant.
The $8 paid for a ticket, after the person starts watching the movie is a sunk cost as it cannot be recovered anymore.
Sunk costs are contrasted to relevant cost which is yet to be incurred in the future. Cost pf machinery, equipment, etc are examples of sunk cost.
Answer:
Zero-cupon bond= $376,889.48
Explanation:
Giving the following formula:
Face value= $1,000,000
Mature= 10*2= 20 semesters
Market rate= 0.1/2= 0.05
<u>To calculate the price of the bond, we need to use the following formula:</u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000,000 / (1.05^20)]
Zero-cupon bond= $376,889.48
Answer:
Depreciation for the first year is $10,000
Explanation:
Unit production method is the depreciation method which is based on the output per year of the asset. The asset is depreciated by the ratio of the output for the year to the output expected over whole useful life.
Cost of printer = $60,000
Expected output = 12,000 prints
Prints in the first year = 2,000
Depreciation for the year = Total cost x output for the year / expected output over useful life
Depreciation for the first year = $60,000 x 2,000 / 12,000
Depreciation for the first year = $60,000 x 1/6
Depreciation for the first year = $10,000
Answer:
The journal entry is as follows:
Cash A/c Dr. $1,176
Sales returns and allowances A/c Dr. $600
Sales discounts A/c Dr. $24
To accounts receivable $1,800
(To record the receipt of the check)
Workings:
Sales discount = 2% of ($1,800 - $600)
= 0.02 × $1,200
= $24
If a price control makes production unprofitable or only slightly more lucrative than average, the amount supplied declines. A price limitation does not necessarily make output unprofitable or insufficiently profitable for all producers in a field.
Effects of a pricing floor. The government imposes a price floor to force consumers to pay manufacturers a minimum amount. In cases where the government feels that producers are obtaining an unjust amount, a price floor is created. With the sole purpose of aiding producers, price floors are imposed. Price floors do have certain negative market implications, though.
Price floor and pricing ceiling are both governmental measures of price regulation. But there is a limit or constraint on how low a price can be set for any good. Government-set minimum prices for specific goods and services are required by law in order to protect producers from receiving extremely low prices.
Learn more about the Imposition of the price floor here:
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