Answer:
The correct answer is "should continue producing 500 lbs of apples"
Explanation:
(In a perfect market)
When the price is = marginal cost. This means that if you increase your production, the benefits-profits will be the same as if you produce the same quantity.
When the Price > Marginal cost, means that consumers demand more for that good, so the producer has an incentive to increase the supply
When the Price < Marginal cost, means that production is higher than the consumer's demand. This is an incentive to decrease the supply.
For this case, the best option is to continue producing the same quantity of units, 500 lbs of apples.
Answer:
Recognized gain = $60000
Explanation:
Below is the calculation:
Price of personal resident = $400000
Selling price = $460000
Since Alan purchased the house for $400000 and selling it for $460000. Therefore recognized gain can be determined by subtracting the purchase price from the selling price.
Recognized gain = $460000 - $400000
Recognized gain = $60000
Answer: $129,500
Explanation:
According to the Accrual Basis in Accounting, revenue and expenses should only be recognised when goods have been delivered.
On the December 31, 2020 Sandra's Boutique had 1,850 gift certificates outstanding but these had been sold already to people during the year for $70.
This means that they have been paid for a service that they have not given (they provide the service when the GIFT certificate is renewed).
They cannot therefore recognize the revenue as Revenue yet and have to defer it.
The amount to be Deferred will therefore be,
= 1,850 * $70
= $129,500
Answer:
If linen department is dropped operating income of the company will decrease.
Explanation:
That is because the cotrollable margin of the department is positive:
controllable margin = contribution margin - controllable fixed costs
$605,000-($800,000-380,000) = 185,000
That means that the Linen department helps to reduced fixed cost that are not generated by this department and that will keep existing wether the department is closed or not.
In addittion the Hardware department will loose 19% of its sales if the Linen department is closed. Thus will result in a reduction of the cntribution margin of the hardware deparment too.
Answer:
bundle pricing
Explanation:
Bundle pricing
Bundle pricing is a marketing strategy in which company want to sell their products and services in price lower than they actually charge. The reason behind inducing bundle pricing is to allow customer to have more services and products by giving them discount.
In other words bundle pricing is mean to offer heavy discount in order to make huge profit by selling their products in large number.
