Answer:
a. People respond to incentives.
Explanation:
Assuming the state of Wyoming passes a law that increases the tax on cigarettes thereby causing smokers who live in Wyoming to start purchasing their cigarettes in surrounding states.
Consequently, an increase in the tax on cigarettes altered the behavior of the smokers in Wyoming, it made them to purchase from neighboring states.
This illustrates or reflect the fact that people respond to incentives.
Answer:
$208
Explanation:
Using the FIFO Inventory method, inventory items are assumed to be sold in the order in which they were purchased from the earliest to the latest.
The order of purchase of the inventory items are.
Jun. 1, DVD Player 1012, $113
Nov. 1, DVD Player 1045, $95
Nov. 31, DVD Player 1056, $88
Therefore, if two of the three items are sold, the cost of goods sold is the cost of the first two items purchased
= 113 + 95 = $208.
Answer:
$5,175
Explanation:
The computation of the amount after 8 month is as follows
As we know that
Amount = Principal × (1 + interest rate × number of days ÷ total number of days)
where,
Principal = $5,000
Interest rate = 5.25%
Number of days = 30 days × 8 months = 240 days
And, the total number of days = 360 days
So, the amount after 8 months is
= $5,000 × (1 + 5.25% × 240 days ÷ 360 days)
= $5,000 × 1.035
= $5,175
Answer:
the wholesaler received $6,138 as payment.
Explanation:
The seller would receive the the amount owing to customer less the return credit and cash discount of 1 %.
The calculation of this amount is as follows :
Account Receivable $6,500
Less Return Credit ($300)
$6,200
Less Cash discount ($6,200 × 1%) ($62)
Payment $6,138
Conclusion :
the wholesaler received $6,138 as payment.
