Answer:
<u> an effective price ceiling set below equilibrium causing shortage. </u>
<u>Explanation:</u>
Note that in the graph the green line indicates a price ceiling or benchmark that is lower (below) the equilibrium.
Remember, the shortage was due to the fact the companies (suppliers) reduced their supply following the normal law of supply, which results in desperate demand for the only available products.
<u>Explanation:</u>
1.One of the important personnel policies are work schedule that includes the mandatory full time working hours in office, break timings, paid holidays etc. Policies have to be framed for sick leaves and family illness.
2.Performance assessment policies which should state the minimum performance requirements from the employees. This would be helpful to fire employees with very poor performances. This also helps in giving promotion and increment to employees.
3.Standard on-boarding policies have to be adopted by the employees to make sure the documentation of new hires are done correctly. The background verification and other personal details of the recruits should be done correctly.
Answer:
a. Annual Interest tax shield = Debt * Interest * Tax Rate
Annual Interest tax shield = $35 million *9% *30%
Annual Interest tax shield = $0.945 million
b. PV of tax shield = $35 million *9% *30% / 9%
PV of tax shield = $10.50 million
c. PV of tax shield at 7% = 35million *7% *30% / 7%
PV of tax shield at 7% = $10.50 million
Answer:
June 30, repurchase of 100 shares:
Dr Treasury stock 4,000
Cr Cash 4,000
Explanation:
The other journal entries should be as follows
July 20, resale of 50 shares:
Dr Cash 2,300
Cr Treasury stock 2,000
Cr Additional paid in capital 300
August 1, resale of 20 shares:
Dr Cash 760
Dr Additional paid in capital 40
Cr Treasury stock 800
Answer:
Sales less variable production, variable selling, and variable administrative expenses.
Explanation:
On a contribution margin income statement the variable administrative and variable selling are considered as variable cost and used to determinate the contribution margin.
Contribution margin =
sales revenue - total variable cost
the fixed cost are listed below the contriution,
once subtracted from the contribution, the rest is the net income.
