Answer:
The answer is: A) Farmers will substitute the production of other agricultural goods? (like soybeans) with corn.
Explanation:
When the price of a certain product increases so steeply, new suppliers will enter the market to offer their products.
Since farmers can only produce one crop at the time in a certain lot, they will always tend to produce the crop that gives them the highest profit. In this case if corn becomes very expensive, it is reasonable to assume that more farmers will produce corn by substituting others crops (like soybean or wheat).
When you state a business rule that pertains to your organization, such as "at my university, a student may declare only one single major," you are actually defining the maximum cardinality of the relationship between students and majors. <span>Maximum cardinality is the maximum number of instances of an entity that can be associated with each instance of another entity.</span>
Explanation:
The computation of the fixed cost and the variable cost per hour by using high low method is shown below:
Variable cost per mile = (High Operating cost - low operating cost) ÷ (High miles - low miles)
= ($845 - $625) ÷ (3,350 miles - 2,250 miles)
= $220 ÷ 1,100 miles
= $0.2 per miles
Now the fixed cost equal to
= High operating cost - (High miles × Variable cost per miles)
= $845 - (3,350 miles × $0.2 per miles)
= $845 - $670
= $175
And, the contribution margin income statement is presented below:
Sales (1,400 × $0.6) $840
Less: Variable cost (1,400 × $0.2) ($280)
Contribution margin $560
Less: Fixed cost ($175)
Net operating income $385
Answer:
$16,500
Explanation:
The computation of increase in investment is shown below:-
Here, if the investor holds 20% or more but less than 50% shares than the dividend paid and income earned by the investee are reported.
Increase in investment = Shares of net income - Share of dividends
= $55,000 × 30% - $0 (Dividend is not paid)
= $16,500
Therefore for computing the increase in investment under equity method we simply applied the above formula.
Answer:
d. All ending inventory balances are zero.
Explanation:
Manufacturing overhead is an indirect cost which occurs when the production is done. Examples are Depreciation, Repairs and Maintenance etc.
All ending inventory balances are zero is the correct option because there is no opening balance and any change in net income is recorded in the balance sheet so, there will be no closing balance.
All production costs approach those costs that were budgeted, The sales mix does not vary from the mix that was budgeted and All manufacturing overhead is a fixed cost are all incorrect.
