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3 years ago

Price controls can cause _____.

Business

2 answers:

aliina [53]3 years ago

8 0

Anger from citizens???

Lorico [155]3 years ago

4 0

Price control can cause shortages and surpluses depending on whether it is the maximum or minimum price control. Hope it helps!

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Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i

Ivahew [28]

Answer:

a) Net income using incremental analysis is  $692

b) PINA should accept the order because it will increase its net income by $692

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

= (10,945 + 29651 + 21094)/19,900

=$3.1

Variable cost per unit of sale = $3.1 + $0.35 = $3.45

a) Incremental Analysis

Change in Net Income: $

Incremental contribution :

( 4.77 - 3.45) × 5,350 = 7,062

Increase in Fixed cost :

(45,374 - 39,004) ( 6370)

Net income 692

b)  PINA should accept the order because it will increase its net income by $692

6 0

3 years ago

Imagination Dragons Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 15-year zero coup

Vladimir79 [104]

Answer:

a) Zero coupon bond does not pay periodical interest and formula to compute the value of a zero-coupon bond:

Value = Face Value / (1 +Yield / 2) ** Years to Maturity * 2

b) Interest deduction

After 1 year bond value from the above equation is 437.08

437.08 - 411.99 = 25.09

In the 14th year bond value from the above equation is 942.60

1000 - 942.60 = 57.40

c) Straight Line Method

Total Interest Paid = 1000 - 411.99

= 588.01

For yearly calculation

588.01 / 15 = 39.21

Further computation is done in the image below.

8 0

3 years ago

Read 2 more answers

The of accounts receivable method uses several percentages to estimate the allowance.

Tatiana [17]

Answer:

The aging of accounts receivable method uses several percentages to estimate the allowance.

Explanation:

An account of receivable aging report lists customer account balances by length of time outstanding.

6 0

2 years ago

A buyer has $20 to spend on rice and beans. Rice costs $2 and beans cost $3 per pound. The buyer is buying the combination of 4

Rainbow [258]

Answer: Buy more of both rice and beans

Explanation: Marginal benefit refers to the additional benefit that a customer get by consuming one additional unit of a commodity.

In the given case, the marginal benefit for the customer is positive for both of the goods. Also if he chooses to but one more unit of anything in place of other than he will not able to use his budget properly.

Thus, from the above we can conclude that the correct option is C.

3 0

3 years ago

Under the all-events test, in addition to specifying that all events to establish the liability must have occurred, the test als

IgorC [24]

Answer:

TRUE

Explanation:

It is true that under the all-events test, in addition to specifying that all events to establish the liability must have occurred, the test also provides that the business must be able to determine the amount of the liability with reasonable accuracy

Under Sec. 461(h), a three-prongall-events test is met when

(1) all events have occurred that establish the fact of the liability;

(2) the amount of the liability can be determined with reasonable accuracy; and

(3) economic performance has occurred.

8 0

3 years ago

Read 2 more answers