Answer:
Having a wedding gown altered
Getting your hair done for a wedding
Explanation:
A service is rendered when there is no exchange of physical goods between the buyer and seller
When a wedding gown is altered and when my hair is done, there is no exchange of a physical good
Yes but you would need to pay that money back
Answer:
Given that,
P = 200,000 – 2 Q
Q = number of cars sold per year
P is in $/car
Selling price = $ 75,000
Subsidy = $ 5,000
Equating the demand curve to the price,
200,000 - 2Q = 75,000
2Q = 200,000 - 75,000
2Q = 125,000
Q = 62,500
Without subsidy,
Price = $ 75,000
Quantity demanded = 62,500.
When a subsidy of $ 5,000 is paid then the price paid by buyers will be equal to $ 70,000.
200,000 - 2Q = 70,000
2Q = 130,000
Q* = 65,000
Consumer surplus (without subsidy)
= 0.5 × 125,000 × 62,500
= $ 3,906,250,000
Consumer surplus(with subsidy)
= 0.5 × (200,000 - 70,000) × 65,000
= $ 4,225,000,000
Change in consumer surplus = Consumer surplus(with subsidy) - Consumer surplus (without subsidy)
= 4,225,000,000 - 3,906,250,000
= - $ 318,750,000
Answer:
Credit Inventory and debit cost of sales with cost of inventory $620 and
Credit Sales and Debit Account receivable or Cash for Sale value of $960
Explanation:
Under the Perpetual inventory system, no purchases account are maintained rather an on-going balance for two accounts are maintained, namely: 'cost of goods available for sale' and 'cost of goods sold'.
Since no purchases account is maintained under this method, the inventory account is updated with every purchase of inventory, and all expenses relating to inventory directory.
So if Davis makes a sale of inventory costing $620 for $960 on account, the following entries will be effected.
Dr Cost of Sales............................620
Cr. Inventory...............................................620
Dr. Accounts Receivable............960
Cr. Sales....................................................960
Being sale of goods worth $620 at $960
Answer: C. Offer product bundling
Explanation:
Product bundling is a marketing strategy whereby several products are grouped together as one and these products will then be sold for a price.
The main aim of the strategy is to encourage customers to purchase more products. Based on the question, the merger will help the company offer product bundling.