For this case, what you should remember is the demand curve.
The vertical axis represents the price.
The horizontal axis represents the quantity.
In this curve we see that the quantity demanded decreases at a higher price.
The lower price the quantity demanded increases.
Answer:
<span> b. the income effect.
</span>
Answer:
The electric guitar division should be: Kept
Explanation:
Currently it has a profit of $280 individually and After elimination it will incur a loss of $4280 which is the loss of profit of 280 and current loss of $4,000. This division should be kept because it is making enough profit to compensate all the avoidable and unavoidable expenses with making addition profit of $280, Otherwise there will be a net loss of $4,280 due to some unavoidable expenses.
Working is made in an attached MS Excel file, please find it.
Answer:
c. is considered to be a reduction in the cost of borrowing.
Explanation:
The premium on bond payable arise when the bond payable is issued more than the face value. It is a liability account consist of the credit balance that is presented on the liability side of the balance sheet
Moreover, it is deducted in the borrowing cost and amortized as an interest expense to the bonds life. It is added to the bond payable
Hence, the correct answer is c.
Answer:
1. A is temporary
2. B is permanent
3. C is temporary
Explanation:
1. A is temporary because these Valentine's day card are sold seasonally. That is at a particular time of the year. It's inventory is not for a permanent basis or for a long period of time.
2. Acquiring a new forklift is a permanent inventory because the equipment will stay in the company for a long period of time, for as long as it continues to serve the purpose for which it was acquired. This makes it a life asset.
3. The Increase in account receivable do due to expansion in customer base is for a short term due to goods sold on credit therefore they are temporary.
Answer:
a. Value added time = Cutting time + Sewing time
Value added time = 5 minutes + 20 minutes
Value added time = 25 minutes
Non-value added time = Total within batch wait time + Move time
Non-value added time = [25 minutes * (40 - 1) + 2 minutes
Non-value added time = 977 minutes
Total lead time = Value added time + Non-value added time
Total lead time = 25 minutes + 977 minutes
Total lead time = 1,002 minutes
b. Value added ratio = Value added time / Total lead time
Value added ratio = 25 minutes / 1,002 minutes
Value added ratio = 0.02495
Value added ratio = 2.5%
