Answer:
Portugal has comparative advantage in producing olives.
Switzerland has comparative advantage in producing fish.
Portugal can gain from trade if it receives more than 3 pounds of fish per crate of olives.
Switzerland can gain from trade if it receives more than 1/11 of olives for each pound of fish.
d. 18 pounds of fish per crate of olives.
Explanation:
Switzerland and Portugal both countries can produce Olives and fish. One country has advantage in producing fish while other has advantage in producing olives. Both countries can gain from trade if they find a intermediary way so that both countries can be in win win situation. It is beneficial for Portugal if it trades with Switzerland if it receives more than 3 pounds of fish.
Answer:
The correct answer to this is type of advertisement is reminder advertising.
Explanation:
Reminder advertising is that type of marketing strategy, which consists of brief messages that are sent to the target consumer base , with the objective of reminding them about the product or service or introducing a new product or service in their already existing marketing program. In this question also local car dealership is trying to remind people of its services offered during the winter.
Answer:
Explanation:
The journal entry is shown below:
Purchase A/c Dr $5.9 million
To Retained earning A/c $5.9 million
(Being the error is corrected and it credited to the retained earning account)
For correction of an error, we debited the purchase account and credited the retained earning account for $5.9 million so that the correct posting can be done.
Answer:
d. within the relevant range of operating activity, the efficiency of operations can change.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Generally, to use the cost-volume-profit analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
<em>Hence, the aforementioned are assumptions of cost-volume-profit analysis except that, within the relevant range of operating activity, the efficiency of operations can change.</em>
Answer:
1. Which year is likely the base year?
The base year is likely to be 2018, because it has the lower consumer price index. This is because most economies show inflation (the gradual increase of the prices overtime within an economy) rather than deflation (the gradual decrease)
2. What is the inflation rate from 2018 to 2019?
Using the consumer price index (CPI) the inflation rate formula is:
Inflation rate = CPI year 2 - CPI year 1 / CPI year 1
in this case, the year 1 is our likely base year, 2018, and year 2 is 2019.
Now, we simply plug the amounts into the formula:
Inflation rate = 255.651 - 251.107 / 251.107 = 0.018 or 1.8%
So the inflation rate from 2018 to 2019 is 1.8%, a rather low number.
