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3 years ago

What explains the shape of a demand curve?

1 answer:

3 0

Demand Curve generally have a negative gradient indicating the inverse relationship between quantity demanded and price. There are at least three accepted explanations of why demand curves slope downwards: The law of diminishing marginal utility. The income effect.

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During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of whi

andrew-mc [135]

Answer:

Absorption Costing Net Income 1008,000

Variable Costing Net Income 976,000

Explanation:

Kodiak Fridgeration Company

Units Produced = 80,000

Units Sold = 72,000

Ending Inventory = 8000

Per Units Cost

Direct materials $6,400,000/80,000 = $ 80

Direct labor 1,600,000 /80,000= $ 20

Variable manufacturing cost 1,280,000/80,000= $ 16

Fixed manufacturing cost 320,000 /80,000 = $ 4

Absorption Manufacturing Cost per unit= 9,600,000/80,000= $ 120

Variable Manufacturing Costs per unit = $ 116

Kodiak Fridgeration Company

Income Statement

Absorption Costing

Sales $10,800,000

Manufacturing costs:

Direct materials $6,400,000

Direct labor 1,600,000

Variable manufacturing cost 1,280,000

Fixed manufacturing cost 320,000 9,600,000

Less Ending Inventory (8000*120) (960,000)

Cost of Goods Sold 86,40,000

Gross Profit 2160,000

Selling and administrative expenses:

Variable $ 72,000* 13.5= 972,000

Fixed 180,000

Net Income 1008,000

Kodiak Fridgeration Company

Income Statement

Variable Costing

Sales $10,800,000

Variable manufacturing cost

(80,000*116) 9280,000

Less Ending Inventory ( 8000*116) 928,000

Cost of Goods Sold 83,52,000

Gross Contribution Margin 2448,000

Variable Selling and administrative expenses

(72000 * $1,080,000/80,000) 972,000

Contribution Margin 1476,000

Less Fixed Expenses

Fixed manufacturing cost 320,000

Fixed 180,000 500,000

Net Income 976,000

3. The difference in absorption and variable costing income is because in absorption costing the fixed costs are treated as unit cost and in variable costs the fixed costs are treated as period costs. Also the fixed costs of the ending units is deducted in absorption costing where it is not deducted in variable costing.

5 0

3 years ago

According to marx, the best economic system would be one where the means of production and distribution are in the hands of the

ololo11 [35]

Karl Marx is the founder of modern communism. Bourgeousie defines the capitalists, those who own the means of production and who take advantage of the labor (work) of the proletariat (the mass of workers who do not own the means of production and are not fairly compensated for their work).
The statement that according to Marx, the best economic system would be one where the means of production and distribution are in the hands of the bourgeoisie is false. In contrast, according to Marx the best economic system would be one where the means of production and distribution are in the hands of the proleteriat.

3 0

3 years ago

Marshall Inc. recently hired your consulting firm to improve the company's performance. It has been highly profitable but has be

dezoksy [38]

Answer:

148.02 days

Explanation:

The computation of the cash conversion cycle is shown below:

As we know that

Cash conversion cycle is = Days inventory outstanding + days sale outstanding - days payable outstanding

where,

Number of days inventory outstanding is

= Average inventory ÷ cost of goods sold per day

= $75000 ÷ ($360,000 ÷ 365 days)

= 76.04 days

Number of days sales outstanding is

= Average account receivable ÷ Average sales per day

= $160,000 ÷ ($600,000 ÷ 365)

= 97.33 days

And, the number of days payable outstanding is

= Average accounts payable ÷ cost pf goods sold per day

= $25,000 ÷ ($360,000 ÷ 365)

= 25.35 days

So, the cash conversion cycle is

= 76.04 days + 97.33 days - 25.35 days

= 148.02 days

3 0

3 years ago

You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You

ehidna [41]

Answer:

d. -$4,608

Explanation:

The computation of the total capital gain is shown below:

Total capital gains is

= (End value - Beginning value) × 900 shares

= ($34.08 - $39.20) × 900 shares

= -$4,608

Hence, the total capital gain on this investment is -$4,608

Therefore the option d is correct

And, the same is to be relevant

5 0

3 years ago

A company discovered in 2013 that it had overstated the inventory balance for Dec 31, 2011 by $10,000. The company had (incorrec

kompoz [17]

Answer:

Corrected Net Income for 2011 = $290,000

Corrected Net Income for 2012 = $410,000

Explanation:

Data provided in the question:

The overstated the inventory balance for Dec 31, 2011 = $10,000

The reported Net Income for 2011 = $300,000

The reported Net Income for 2012 = $400,000

Now,

Since the inventory is overstated in the year 2011, it will be subtracted from the reported incorrect Net Income for 2011

Thus,

Corrected Net Income for 2011 = $300,000 - $10,000

= $290,000

And, for the year 2012 the overstated inventory will be added to the reported Net Income for 2012

thus,

Corrected Net Income for 2012 = $400,000 + $10,000

= $410,000

7 0

3 years ago