Answer:
D. the market will fail Explanation: The output at maximum level will eventually reduce demand because the product will be over in circulation which attract a deducting in its price and demand too.
Answer:
TOTAL 258,000
TOTAL 258,000
Explanation:
Calculation to reconcile the number of physical units Using the FIFO method
PHYSICAL UNITS
Beginning Inventory 74,000
Units Started 184,000
TOTAL 258,000
PHYSICAL UNITS
Units Completed 164,000
(258,000-94,000)
Ending Inventory 94,000
TOTAL 258,000
Therefore Using the FIFO method to reconcile the number of physical units will give us 258,000 and 258,000
Answer:
<u>Contribution Margin Statement</u>
Sales revenue ($100 x 980) $98,000
Less Variable costs:
cost of goods sold ($58 x 980) $56,840
Commissions expense ($5 x 980) $4,900
Shipping expense ($3 x 980) <u>$2,940</u>
<u>$64,680</u>
Gross margin $33,320
Less Fixed costs:
Salaries expense $7,900
Advertising expense <u>$5,800</u>
<u>$13,700</u>
Net Profit <u>$19,620</u>
Answer:
17%
Explanation:
If a company issued a short-term note payable to a bank with a stated 12 percent rate of interest and in addition the bank charged a .5% loan origination fee and remitted the balance to the company. The effective interest rate paid by the company in this transaction would be 17%
The effective annual interest rate is <u>the interest rate that is actually earned or paid on an investment, loan</u> or other financial product.
Hence, since the company is both paying the initial 5% and the later 12%, effectively the company is paying 17% on the note payable.
