Answer:
Reject Order Accept order Net Income
Increase (Decrease)
Revenues = $0 $105,000 $105,000
(3750 units x $28)
Costs-Manufacturing = $0 -$71,250 -$71,250
(3750 units x $19 (VC)
)
Shipping $0 -$3,750 -$3,750
(3750 units x $1)
Net Income $0 $30,000 $30,000
Pharoah Electronic would realize the net Income of $30,000 by accepting the special order. Hence, the special order should be accepted.
Answer: above its original value
Explanation:
An increasing-cost industry simply means the industries whereby there's a rise in the average costs when the output increases.
Demand increases in an increasing-cost industry which is in long-run competitive equilibrium. After full adjustment, price will be above its original value.
Question Completion:
A. if college administrators raised the tuition with no change in supply, a surplus of college places would be created at the higher tuition, and the tuition would start to fall
B. the law of demand does not hold
C. more than 4,500 public and private 2-year and 4-year schools supply college education services
D. an increase in demand raises the tuition and increases the enrollment, which accurately describes the market for college education
Answer:
We can be confident that the market for college education is competitive and that an increase in demand rather than the greed of college administrators is the reason for the ongoing rise in tuition for all of the following reasons except _______.
B. the law of demand does not hold
Explanation:
The law of demand implies that the price of a good or service responds to the level of demand. In other words, higher demand increases the price, while lower demand reduces the price. This implies that without the higher demand for college education, college administrators will not be able to sustain an increase in tuition. Therefore, an increase in the demand for college education will lead to increased enrollment, which spurs college administrators to raise tuition.
Answer:
17,200 Units
Explanation:
The total number of units started into production is the sum of the units completed with the ending work in progress, given that the company had no beginning work in progress and no information is given on units wasted.
Units started in production
= 16000 + 1200
= 17,200 Units
Answer:
The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:
$486,000.
Explanation:
a) Data and Calculations:
Net asset value of Satisfactory = $1,944,000 on acquisition date
Stake purchased by Perfection = 25%
25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)
b) There is no goodwill arising from the investment in Satisfactory. The equity method will be used to account for the investment in the Satisfactory. The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.
