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2 years ago

Either more sellers in the market or lower production costs can cause supply to _____ at each price level.

Business

2 answers:

Mariulka [41]2 years ago

7 0

Answer:

increase

Explanation:

When new providers enter a competitive market, parameters such as equilibrium price, supply and demand tend to change. The higher the number of sellers, the higher the production tends to be for each price level. The same is true if production costs go down, as this is an incentive for each salesperson to produce and deliver more so as to maximize their revenue.

Otrada [13]2 years ago

4 0

Increase or shift right because if the cost of production goes down then the supplier can make more products for less money therefore making the supply of a good more. if there are more supplier then the same thing happens. more product in the market.

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Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicate

Varvara68 [4.7K]

Answer:

Healthy Beverage Inc.

a) Differential Analysis

1) Continue Fruit Cola (Alt. 1)

Sales $12,750,000

Cost of goods sold 8,500,000

Gross profit $4,250,000

Operating expenses 6,000,000

Loss from operations ($1,750,000)

2) Discontinue Fruit Cola (Alt. 2)

Differential Effect on Income (Alternative 2):

Fixed costs:

Cost of goods sold $2,125,000

Operating expenses 900,000

Income (Loss) ($3,025,000)

b. Should Fruit Cola be retained ?

The production and sale of the Fruit Cola should be continued. Discontinuing it would not save the company the incurrence of the fixed cost.

Explanation:

Differential analysis is a managerial accounting technique for analyzing the different costs and benefits that would arise from alternative solutions to a particular problem.

In the above scenario, discontinuing the production and sale of Fruit Cola would not save the company the fixed costs, so the product should be continued. It is not the product that is causing the net loss but allocated fixed costs. Fixed cost is a sunk cost that is not relevant in differential analysis type of decision making.

5 0

2 years ago

Goods are complements if an increase in the price of one causes a __________ in the demand for the other

ASHA 777 [7]

Answer: decreases

Explanation: In simple words, complementary goods are those goods which have negative relation with each other in respect of price and demand. The usage of one good is dependent on other in case of complementary relation.

For example - Petrol and petrol car are complementary goods, if the price of petrol increases the demand for petrol cars will decrease.

Hence we can conclude that the right answer to the given problem is decrease.

7 0

2 years ago

The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/20

salantis [7]

Answer:

17 million

Explanation:

The computation of the outstanding common shares is shown below:

= Number of common shares outstanding - treasury common stock

where,

Number of common shares outstanding = Total value of the common shares ÷ par value of the share

= $105 million ÷ $5

= 21 million

And, the treasury common stock is 4 million

Now put these values to the above formula

So, the value would equal to

= 21 million - 4 million

= 17 million

6 0

2 years ago

Describe your biggest achievement when you worked in team

Annette [7]

Success because u are helping each other out and y’all could win

4 0

1 year ago

Read 2 more answers

Cully Furniture buys two products for resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100 cubic

lana66690 [7]

Answer:

1) 500K + 250Q ≤ 80,000

100K+80Q≤ 30,000

K≥0

Q≥0

P= 400K + 200Q

2) zero king beds and 320 queen beds

or zero queen beds and 160 king beds

3) surplus variable

surplus variable is storage space

values of surplus variable is 14,000 cubic feet if zero queen beds and 160 king beds

value of surplus variable is 4,400 cubic feet if zero king beds and 320 queen beds.

surplus is the extra amount available after all resources have been utilized to theri maximum.

4) none of the resources will be completely used. There will be surplus of both

Explanation:

1) Implicit variables: K≥0 ; Q ≥ 0

Explicit variables:

500K + 250Q ≤ 80,000-------------------------- from investment constraint

100K+80Q≤ 30,000 ---------------------- from storage space constraint

LP: P= 400K + 200Q

2) See the attachment for profit maximization graph

3) From graph in the attachment, it can be inferred that storage space is the surplus variable since graph of that equation lies completely outside of optimal area.

Also,

if K=160 and Q=0, the inequality of investment gives

500(160) + 250(0)= 80,000

if K=0 and Q=320, the inequality of investment gives

500(0)+ 250(320) =80,000

if K=0 and Q = 320, the inequality of space gives

100(0) + 80(320)= 25,600

surplus= 30,000- 25,600= 4,400

if K=160 and Q=0, the inequality of space gives

100(160) +250(0)= 16000

surplus= 30000-16000= 14000

4) K=0 and Q=300

investment inequality gives

500(0) + 250(300) ≤ 80,000

75,000≤ 80,000

space inequality gives

100(0) + 80(300) ≤ 30,000

24,000≤ 30,000

Both space and investment are in surplus

6 0

2 years ago