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Answer:
d. All of the above are correct
Explanation:
Demand refers to the quantities of a product that buyers are willing to purchase at a given price over time. The relationship between demand and price is explained in the law of demand. The law asserts that everything else remaining constant, the demand for a product is indirectly related to its price.
The demand curve illustrates the relationship between price and demand for a service or product. The curve is downward sloping showing how the quantity demanded changes with changes in price. Most goods will behave as per the demand curve. However, inferior goods tend to behave differently. An increase in income reduces the demand for an inferior product.
Answer:
B) 708
Explanation:
The computation of the economic order quantity is shown below:
Data given in the question
Annual demand = 50,000 units
Ordering cost per order = $25
Holding cost per unit = $5


= 708 units
We apply the above formula to compute the economic order quantity so that the approximate value could come by considering the all items given in the question
Production possibilities curve shifted outward
Answer:
Equivalent Units of Production :
(1) Materials = 298000
(2) Conversion Costs = 284400
(3) Total = 582400
Explanation:
The Concept of Equivalent Units entails identifying number of completed units in terms of their completion % in the input component or process.
<em>Step 1 : Determine Units Completed and Transferred to Finished Goods</em>
<em>Units in Process = Units Output</em>
Units In Process 298000
Less Closing Work In Process 34000
Completed and Transferred 264000 (Balancing figure)
<em>Step 1 : Determine Equivalent Units for each input component</em>
Materials:
Completed and Transferred 100% = 264000×100%= 264000
Closing Work In process 100% = 34000×100%= 34000
Total = 298000
Conversion Costs:
Completed and Transferred 100% = 264000×100%=264000
Closing Work In process 60%=34000×60%=20400
Total =284400