All categories

3 years ago

A decrease in input costs to firms in a market will result in a(n) _________________

Business

1 answer:

shtirl [24]3 years ago

6 0

Answer:

a) decrease in equilibrium price and an increase in equilibrium quantity.

Explanation:

As the input cost decreases for the companies the the supply of the goods increases hence the supply curve shifts rightwards.In the curve at the new equilibrium point the equilibrium price decreases and the equilibrium quantity increases.

Think it like if cost of creating anything is decreased for a company then the company will create more products .So there will be more products in the market.So to clear the products in the market the price will be reduced and the quantity of the product is more than before.

You might be interested in

A company has three product lines, one of which reflects the following results: Sales $ 215,000 Variable expenses 125,000 Contri

oksano4ka [1.4K]

Answer: option C

Explanation: THIS CAN BE REPRESENTED AS FOLLOWS :-

If we eliminate the product there would be no sales, no variable expenses and therefore, no contribution.

sales = nil

-variable expenses= nil

contribution = nil

- fixed expenses = 56,000

NET LOSS = (56000)

NOTE :-

Fixed expense = (140,000)*(40%)= 56,000

Thus increase in loss would be 56000- 50,000=6000

6 0

3 years ago

"E3-26A Record manufacturing overhead (Learning Objectives 5 & 6) Refer to the data in Exercise 3-25A. Smith’s accountant fo

Kipish [7]

Explanation:

Journal entries are used by Accountants to post transactions into the respective General Ledger of a business.

It typically shows a debit side which records increase to expenses or Assets, it also could be a reduction to Income or Liabilities (if it is an adjustment Journal). And it also shows a credit side which records an increase to Income or Liability, it could also be a reduction to expense or Asset (if it's an adjustment journal)

4 0

3 years ago

Yurman Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or th

vekshin1

Answer:

b. $660,000.

Explanation:

Deferred revenues or unearned revenues refer to money that a company received in advance for goods or services that it still has delivered or provided. In this case, the company hasn't provided services for years 2017, 2018 and 2019 = $200,000 + $320,000 + $140,000 = $660,000

6 0

3 years ago

Sacha, a dentist, has significant investment assets. She holds corporate bonds, municipal bonds, stocks and mutual funds. Sacha

erik [133]

Answer:

C) Part of the $1,500 fee will be disallowed due to the holding of the municipal bonds

Explanation:

the investment-related expenses are deductible as the miscellaneous itemized deductions. in the case the tax-exemp securities are help, the proportionate investment-related expenses are allocated to these securities and the are not allowed since the income is tax-exempt.

4 0

3 years ago

On January 1, 2016, Parker Company issued bonds with a face value of $62,000, a stated rate of interest of 11 percent, and a fiv

nignag [31]

Answer:

Parker Company

a. Amortization Table

Date Interest Discount

Cash Payment Expense Amortization Carrying Value

January 1, 2016 $57,639

December 31, 2016 $6,820 $7,493 $673 58,312

December 31, 2017 6,820 7,581 761 59,073

December 31, 2018 6,820 7,679 859 59,932

December 31, 2019 6,820 7,791 971 60,903

December 31, 2020 6,820 7,917 1,097 62,000

b. The carrying value that would appear on the 2019 balance sheet is:

= $60,903.

c. The interest expense that would appear on the 2019 income statement is:

= $7,791.

d. The amount of cash outflow for interest that would appear in the operating activities section of the 2019 statement of cash flows is:

= $6,820.

Explanation:

a) Data and Calculations:

Face value of bonds = $62,000

Proceeds from the issue = 57,639

Bonds discount = $4,361

Stated rate of interest = 11% paid annually on December 31

Effective rate of interest = 13%

December 31, 2016:

Interest expense = $7,493 ($57,639 * 13%)

Interest payable = $6,820 ($62,000 * 11%)

Discount amortization $673 ($7,493 - $6,820)

Bond value = $58,312 ($57,639 + $672)

December 31, 2017:

Interest expense = $7,581 ($58,312 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $761 ($7,581 - $6,820)

Bond value = $59,073 ($58,312 + $761)

December 31, 2018:

Interest expense = $7,679 ($59,073 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $859 ($7,679 - $6,820)

Bond value = $59,932 ($59,073 + $859)

December 31, 2019:

Interest expense = $7,791 ($59,932 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $971 ($7,791 - $6,820)

Bond value = $60,903 ($59,932 + $971)

December 31, 2020:

Interest expense = $7,917 ($60,903 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $1,097 ($7,917 - $6,820)

Bond value = $62,000 ($60,903 + $1,097)

3 0

3 years ago