Answer:
A
Explanation:
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
Because price is below equilibrium price, consumer surplus would increase and producer surplus would reduce
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr 15,900
To Notes Receivable A/c $15,000
To Interest Revenue A/c $900
(Being cash is collected with respect of notes receivable and interest revenue)
For recording this transaction, we debited the cash account and credited the notes receivable and interest revenue account
Answer:
A. $660
Explanation:
Total assets include current assets, fixed assets, and intangible assets Current assets include cash, stock, receivable account, etc. Fixed assets include plant & machinery, land, equipment, furniture & equipment, etc.
And the intangible assets are trademarks, copyrights, goodwill, and so$66 on.
The computation is shown below:
= Total assets - fixed assets
= $1,450 - $790
= $660
Answer:
$480,000
Explanation:
Calculation to determine what total relevant costs to make the part internally are
First step is to calculate Relevant cost per unit:
Relevant cost per unit:
Direct materials $6
Direct labor $24
Variable manufacturing overhead $12
Fixed manufacturing overhead ($15 × 0.40) $6
Relevant manufacturing cost $48
Now let determine the Total relevant costs to make the part internally
Total relevant costs to take the part internally=($48 × 10,000)
Total relevant costs to make the part internally = $480,000
Therefore total relevant costs to make the part internally are $480,000
