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.
Answer:
Balance sheet
Explanation:
Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
The debit and credit side of the balance sheet should always be equal and balanced.
Moreover, it always is prepared on the specified date.
It analyzes the financial profitability, position, performance of the business organization
Answer: $45 per machine hour
Explanation:
Company uses machine hours as its overhead allocation base and there were 106,000 machine hours planned.
The overheads are $3,800,000 for indirect labor and $970,000 for factory utilities.
The rate will therefore be;
= Total Overhead / Machine hours
= (3,800,000 + 970,000) / 106,000
= $45 per machine hour
Answer:
$18.33
Explanation:
The company just paid an annual dividend of $2.24
The dividend increase by 2.3% annually
= 2.3/100
= 0.023
The required return is 14.8%
= 14.8/100
= 0.148
Therefore the price that will be paid for one share of LBM stock can be calculated as follows
= 2.24 × (1+0.023)/(0.148-0.023)
= 2.24 × 1.023/0.125
= 2.29153/0.125
= $18.33
Hence $18.33 will be paid for one share of LBM stock
Answer:
True
Explanation:
Coke tried to diversify into the bottling industry by acquiring their bottlers and in the process creating a vertically integrated business. However, 5 years later, they did find out how difficult it was and it led to a failed diversification effort when sold off their bottling operations. This was majorly due to the fact that the bottling business required too much capital investment and time. Capital investment and time that an already large enterprise like coca cola couldn't afford at that period. The initial aim was to have control over the whole production process, but soon after the diversification failed, they went back to producing just the concentrates.
