Answer:
LCM = $15.5
Explanation:
RC = $14
Ceiling: NRV = $17
Floor: NRV – PM
Net realizable value for product ALPHA -Normal profit for product ALPHA
= $17 – $1.50= $15.5
Market= $15.5
LCM = $15.5
Therefore the proper per unit inventory value for product ALPHA applying LCM will be $15.5
Answer:
An increase in taxes.
Explanation:
A rise in the prices is indications that the inflation rate is high. Policymakers should intervene by introducing contractionary measures that will counter the rising inflation. Fiscal policy measures, such as increasing taxes, reduce inflationary pressures without the risk of causing a recession.
Increase taxes reduces the purchasing power of businesses and individuals, thereby reducing the aggregate demand. A reduction in aggregated demand lowers production levels, which results in low inflation but increases the unemployment rate.
Answer:
Increase of $95,000
Explanation:
Stockholder equity: It records the issue of shares, retained earnings, and deduct the dividend amount if declared.
The expenses which are related to the business is directly or indirectly affect the stockholder equity.
So, the net effect is shown below:
Issuance of common stock = $200,000
Less - Payment of salaries expense = $105,000
So, the net effect would be equal to
= $200,000 - $105,000
= $95,000
The accounts payable does not affect stockholder equity. So, it would not be considered.
This $95,000 would increase stockholder equity.
Answer:
The correct option is A, Samantha weed and Adam will rake because these are the goods each has a comparative advantage in.
Explanation:
The opportunity formula comes handy in this case, which is given below:
opportunity cost formula=what one sacrifices/what one gains
If Samantha were to weed flower beds, opportunity cost is computed thus:
Opportunity cost of Samantha weeding flower beds=8/4= 2 bags of leaves raked
The opportunity of Adam weeding flower beds=25/5 =5 bags of leaves raked.
In a nutshell ,if Samantha weeds flowers they would lose 2 bags of leaves raked while if Adam were to do so same, they would lose 5 bags of leaves raked, conclusively Samantha should weed flower beds since she has lower opportunity, higher comparative advantage
