Answer:
Product A $7.80
Explanation:
Calculation to Determine the most profitable product assuming the machine hours are the constraint.
PRODUCT A PRODUCT B
Contribution margin per unit $85.80 $107.80
÷Machine hours 11 14
=Contribution margin per bottle neck hour
$7.80 $7.70
Based on the above calculation Product A is the most profitable because product A profit Amount of $7.80 is higher than that of product B.
Question:
If an utility company were considering an increase in electricity or gas prices in order to cover the costs of a capital investment, this sector would result in the smallest change in quantity demanded in the long run and thus higher profits. True or false?
Answer:
The answer is True.
Explanation:
Change in the demand for gasoline and or electricity is primarily set by the number of industrial or bulk users.
Scarce goods are allocated though the help of prices. It is important to note that demand for gasoline or electricity is <u>more elastic in the long term</u>, so small changes in price will alter supply and demand in either direction in the shortrun.
The demand for gas or electricity are by nature <em><u>inelastic.</u></em> This means that when prices go up, demand goes down <em><u>but not by much.</u></em>
It means that in the short term, the individuals cannot alter their lifestyle immediately to adjust for the hike in prices.
To adjust they would have to probably purchase new devices which or cars which consume less gas or electricity.
The effect this has for the company on the overall is that they are able to achieve their aim of recouping their capital investments from the planned increase in price.
Cheers!
Answer:
B net income is overstated, assets are overstated, and stockholders' equity is overstated
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
Hence, where ending inventory balance is overstated, cost of goods sold is understated. When cost of goods sold is understated, gross and net incomes are overstated. Hence owner's equity is overstated and asset overstated.
Answer:
$812.20
Explanation:
Given the following bond characteristic:
Coupon rate = 12%
Market or yield rate = 15%
Years to maturity = 20 years
Face or par value = $1000
Inputting the values into a bond value calculator, the bond value output is : $812.20
This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.
