<span>The total revenue they earned from selling the football tickets is $1,200,000.
As a result, they should debit cash for $1,200,000 and credit for unearned revenue for the same amount.</span>
Answer:
Some of the troubles that could occur in the economy if inflation rate get as high as 8% or 10% per year are:
1) Foreign investors will avoid the country.
2) Money losses value very fast causing an increase in the prices of goods and services.
3) The economy becomes unstable making the the government leaders to loose credibility.
Explanation:
The type of inflation that gets as high as 8% or 10% is called Galloping inflation.
Some of the troubles that could occur in the economy if inflation rate get as high as 8% or 10% per year are:
1) Foreign investors will avoid the country.
2) Money losses value very fast causing an increase in the prices of goods and services.
3) The economy becomes unstable making the the government leaders to loose credibility.
Answer:
indicates what percent decline in sales could be sustained before the company would operate at a loss.
Explanation:
Since, Margin of safety ratio = Expected Sales - Break even sales
therefore,
The correct statement is : The margin of safety ratio indicates what percent decline in sales could be sustained before the company would operate at a loss.
Answer: (i) $20 per model
(ii) $27 per model
(iii) Ginny has a comparative advantage in building models.
Explanation:
A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore,
Ginny's Opportunity cost of producing one model = 
= $20 per model
Eric’s opportunity cost of building models = $20 + 35% of $20
= $20 + $7
= $27 per model
Hence, Ginny has a comparative advantage in building models because Ginny's opportunity cost of building model is lower than Eric's opportunity cost.
