Might nutrasweet is too early in China?

Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-ma

pishuonlain [190]

Answer: Firms will exit the market, causing price to rise until losses are eliminated

Explanation:

When there is a decrease in demand in a Perfectly Competitive Market, firms will have to start producing at a lower Quantity to manage their Marginal cost. This leads to Economic losses on their part in the short run.

In the long run however, should the situation remain the same, the new price would be less than their Average Cost which would deepen Economic losses. Firms would respond by exiting the market in the long run.

As the firms exit, the supply curve shifts left as supply drops. This drop in supply leads to a price rise. The exits will continue until enough firms leave that the market's remaining firms will stop suffering economic losses.

8 0

3 years ago

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost

Ghella [55]

Answer:

See below

Explanation:

1. Predetermined overhead rates

= Applied overhead / Direct labor

Job 114

Applied overhead / direct labor

= $1,260/1,800

= 70%

Job 115

Applied overhead / direct labor

= $994/1,420

= 70%

Job 116

Applied overhead / direct labor

= $3,094/4,420

= 70%

2 and 3 Ending balance of each job and work in process as of April 30th.

Job 114. Job116

Opening. $2,384. $3,085

Materials

Purchases $16,800. $5,410

Direct labor

($1,800+$1,800) $3,600. $5,740

Actual $2,520 $4,018

Overhead

at 59.36%

Balance $25,304. $18,253

• Note

The whole of job 115 has been sold out.

• Actual overhead = Actual overhead / direct labor

= $4,535/7,640

= 59.36%

4 Cost of goods sold in April

Job 115

Opening materials. $2,603

Purchases. $12,460

Direct labor

($1,420 + $3,080). $4,500

Actual overhead. $3,150

at 59.36%

Cost of goods sold $22,713

5. Selling price of job

Cost of job 115 = $22,713

Selling price = 1.25% × $22,713 = $28,391

4 0

3 years ago

Given the following data, calculate the total product cost per unit under variable costing. Direct labor $ 3.50 per unit Direct

labwork [276]

Answer:

$7.05

Explanation:

Given that

Direct labor = $3.50 per unit

Direct material = $1.25 per unit

Variable overhead = $41,400

Total fixed overhead = $150,000

Produced units = 18,000

The computation of total product cost per unit under variable costing is shown below:-

Total Variable overhead = Variable overhead ÷ Produced units

= $41,400 ÷ $18,000

= $2.3

Total product cost per unit = Direct labor + Direct material + Total variable overhead

= $3.50 + $1.25 + $2.3

= $7.05

3 0

3 years ago

The capital-to-labor ratio is:Question 40 options:a) a key element in decreasing real wages.b) high in rich countries.c) the rat

andrezito [222]

Answer:

b) high in rich countries.

Explanation:

Capital-to- labour ratio measure the degree of capitalisation of an economy.

Labour is the service that is given by workers in exchange for salaries in the production process.

Capital is the long term input that is put into the manufacturing process, usually in the form of machinery or systems that automate production.

Capital-to-labour ratio= Total capital/ Total labour

Rich countries have a high level of capitalisation of their production process, where a lot of activity is automated. So capital is high and labour input is low. This results in a high capital-to-labour ratio.

On the other hand poor countries are more labour inensive, so their capital-to-labour ratio is low.

7 0

3 years ago

Read 2 more answers

Serotta Corporation is planning to issue bonds with a face value of $450,000 and a coupon rate of 16 percent. The bonds mature i

Brrunno [24]

Answer:

1. Dr Cash 481,588.61

Cr Bonds payable 450,000

Cr Premium on bonds payable 31,588.61

2. March 31

Dr Interest expense 14,447.66

Dr Premium on bonds payable 3,552.34

Cr Cash 18,000

June 30

Dr Interest expense 14,341.09

Dr Premium on bonds payable 3,658.91

Cr Cash 18,000

September 30

Dr Interest expense 14,231.32

Dr Premium on bonds payable 3,768.68

Cr Cash 18,000

December 31

Dr Interest expense 14,118.26

Dr Premium on bonds payable 3,881.74

Cr Cash 18,000

3. carrying value = $466,726.94

Explanation:

face value = $450,000

maturity = 2 years x 4 = 8 periods

coupon rate = 16% / 4 = 4%

coupon = $18,000

YTM = 12% / 4 = 3%

using a financial calculator, the PV of the bonds = $481,588.61

amortization first coupon = ($481,588.61 x 3%) - $18,000 = $3,552.34

Dr Interest expense 14,447.66

Dr Premium on bonds payable 3,552.34

Cr Cash 18,000

amortization second coupon = ($478,036.27 x 3%) - $18,000 = $3,658.91

Dr Interest expense 14,341.09

Dr Premium on bonds payable 3,658.91

Cr Cash 18,000

amortization third coupon = ($474,377.36 x 3%) - $18,000 = $3,768.68

Dr Interest expense 14,231.32

Dr Premium on bonds payable 3,768.68

Cr Cash 18,000

amortization fourth coupon = ($470,608.68 x 3%) - $18,000 = $3,881.74

Dr Interest expense 14,118.26

Dr Premium on bonds payable 3,881.74

Cr Cash 18,000

5 0

3 years ago

Might nutrasweet is too early in China?​

Might nutrasweet is too early in China?