Explanation:
If a good is normal, then a decrease in price will cause a substitution effect that is The correct answer was: a. positive and an income effect that is positive.
Answer:
Sales revenues= $1,317,150
Explanation:
Giving the following information:
Vaughn estimates it will sell 7000 units during the first quarter of 2019 with a 12% increase in sales each quarter.
Selling price= $150
<u>First, we need to calculate the number of units to be sold in the third quarter</u>:
Sale in units= 7,000*1.12^2= 8,781
<u>Now, sales revenues:</u>
Sales revenues= 8,781*150
Sales revenues= $1,317,150
Answer:
A long-term investment.
Explanation:
The land should be classified as a long-term investment.
This is an asset owned by the company, that it intends to keep for more than a year. This asset is usually recorded on the asset side of a company's balance sheet.
It is the opposite of short-term investment which is sold within one year.
Answer:
A corporation has the ability to enter into contracts, incur liabilities, and buy, sell, or own assets in its corporate name. These provisions can be found in the charter or articles of incorporation. Ownership of a corporation is divided into shares of stock.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
The manufacturing of clear glasses takes 45,000 direct labor hours. The traditional method applies $560,000 of overhead based on direct labor hours.
We need to calculate the manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 560,000/(45,000 + 115,000)= $3.5 per direct labor hour
Now, we can allocate the overhead to clear glasses:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 3.5*45,000= $157,500
