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alexgriva [62]
3 years ago
8

What is it called where consumers react to rising prices by consuming less of a good and more of it's competitors?

Business
1 answer:
adelina 88 [10]3 years ago
6 0

Answer:

Substitute Effect

Explanation:

When a product's price increases, it becomes relatively expensive compared to its alternatives. The high price will encourage consumers to choose other goods that are relatively cheaper. Consequently, the price increase reduces the demand for the product while increases the demand for its substitutes.

The substitution effect describes how consumption is affected by an increase or a decrease in a product's price.

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Walt Bach Company has accumulated the following budget data for the year 2019.
mrs_skeptik [129]

Answer:

Walt Bach Company

a) Schedule of Cost of Goods Sold

Direct materials =                 $400,000 (2*$5*40,000)

Direct labor =                          960,000 (1.5*$16*40,000)

Manufacturing overhead =    360,000 ($6*60,000)

Total cost of goods sold = $1,720,000

b) Budgeted Income Statement for 2013

Sales Revenue          $2,200,000

Cost of goods sold      (1,720,000)

Gross profit                   $480,000

Selling and admin. exp.  200,000

Income before tax        $280,000

Income tax (30%)             (84,000)

Net income                   $196,000

Explanation:

a) Budget Data and Calculations:

Sales: 40,000 units, unit selling price $55, Revenue = $2,200,000

Cost of one unit of finished goods:

Direct materials 2 pounds at $5 per pound = $400,000 (2*$5*40,000)

Direct labor 1.5 hours at $16 per hour = $960,000 (1.5*$16*40,000)

Manufacturing overhead $6 per direct labor hour = $360,000 ($6*60,000)

Inventories (raw materials only):

Beginning, 10,000 pounds;

Ending, 15,000 pounds.

Selling and administrative expenses: $200,000.

Income taxes: 30% of income before income taxes.

6 0
3 years ago
Year 1 Year 2 Amounts billed to clients for services rendered $ 182,000 $ 232,000 Cash collected from clients 154,000 184,000 Ca
Advocard [28]

Answer:

Explanation:

Year 1:

Cash collected from clients $154,000

Salaries paid to employees for services rendered during the year $27,000

Utilities $84,000

Purchase of insurance policy $58,200

So, in order to find net cash flow, $(154000-27000-84000-58200)=-15200

Year 2:

Cash collected from clients $184,000

Salaries paid 34000

Utilities paid 94000

Insurance paid is 0

So, net cash flow $184000-$(34000+94000)=$56000

Year1 paid 27000 in salaries, accrued =32000

So still 5000 has to be paid in year 2

Year 2 paid 34000 ⇒ so accrued is 29000

Insurance accrued for each year is 58200/3=19400

Income statement for year 1 and 2

                                         year1   year2

Revenue:  

Income from services 182000 232000

Expense

Salary 84000 94000

Utilities 32000 29000

Insurance 19400 19400

Net income 46600 89600

5 0
3 years ago
Read 2 more answers
Which of the following provisions of the Sarbanes-Oxley Act addresses the management assessment of internal controls?
Ainat [17]

Answer:

b. codes of ethics for senior financial officers.

Explanation:

according to the Sarbanes-Oxley act:

- The company should be having an expert who is responsible for the auditing andd the company should name the expert and if they are not having the expert they should give a reason.

- A comapny should have a code andd ethics and it should also be applied to the seniors.

4 0
3 years ago
The Industrial Revolution marked the transition from doing things by hand to doing thm with machines. True False
irina [24]
This is pretty much true! The industrial revolution was all about from having things hand me to using machines! Support my answer just look it up just in case!
7 0
2 years ago
The Blending Department for ArkYork Paints started October with 500 gallons in process and started in production 9 comma 000 gal
prisoha [69]

Answer:

<u>Production cost report for the Blending Department for the month of October</u>

Inputs

                                                                                     Units                      

Opening Work In Process                                           500

Started                                                                       9,000

Total                                                                           9,500

Outputs

                                                                                    Units                      

Completed and Transferred                                      6,500

Closing Work In Process                                            3,000

Total                                                                            9,500

Explanation:

The concept of equivalent units measures the number of units completed in terms of completion stage of the the inputs.

8 0
3 years ago
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