Answer:
Price and quantity both increase
Explanation:
The decrease in the price of soda can caused increase in demand of soda. But because customers like to enjoy movies,soda and popcorn together, the increase in demand of popcorn is possible, which can cause increase in price and quantity of popcorn.
Answer:
Xia Co.
1-a. The relevant costs for Xia Co. to make or buy the part:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
1-b. Xia should make the part. It will cost Xia $4.00 to make the component while it costs it $5.00 to buy. It should therefore, make the component.
Explanation:
a) Data and Calculations:
Price of buying component = $5
Cost of making component:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
b) The relevant cost for making the component is $4.00. The overhead cost based on 200% direct labor is not a relevant cost. It is an allocated fixed cost and must be incurred whatever decision is taken. By making the component, Xia Co. will be netting in a unit contribution of $1 ($5.00 - $4.00) with the alternative of buying.
Answer:
Gross Income - $2570 ($21.60*119)
Group Health Insurance - $360 ($2570*0.14)
Pension Deduction- $154 ($2570*0.06)
Total Deduction- $514 ($360 + $154)
Net Pay- $2056 ($2570 - $514)
Explanation:
As the question states given the pay rate and hours worked, No Data of pay rate and hours worked is provided. Gross Earnings are $21.60 which doesn’t seem accurate when compared with Group Health Insurance and Pension figures. However let’s assume the pay rate to be $21.60 and hours worked to be 119 hours then we will have the following results:
Gross Income - $2570 ($21.60*119)
Group Health Insurance - $360 ($2570*0.14)
Pension Deduction- $154 ($2570*0.06)
Total Deduction- $514 ($360 + $154)
Net Pay- $2056 ($2570 - $514)
I hope this is the type of answer you must be looking for!
Answer:
The journal entry for the issuance of the preferred stock is shown below:
Explanation:
Cash A/c..................................................Dr $30,000
Preference Stock A/c....................................Cr $10
Paid in Capital in excess of Par A/c...........Cr $29,990
Working Note:
Cash = Shares × Issued price per share
where
Shares are 1,000
Issued Price per share is $30
= 1,000 × $30
= $30,000
Preference Stock = Shares × Par price
= 1,000 × $0.01
=$ 10
Paid in Capital in excess of Par = Cash - Preference stock
= $30,000 - $10
= $29,990
