increase return means more profit is comming in from product that more consumers are buying. say a grocery store bought 80 gal. of milk at 1.00 a gallon, and a snowstorm is predicted for the next week, store charges 2.00 a gallon. bcause of weather, ppl are stocking up on supplies. the store can charge more for product if demand is higher ....
Answer:
1. Dr Equipment 36000
Cr Cash 9000
Cr Notes payable 27000
( To record entry of equipment purchase on cash and on promissory note)
Explanation:
Equipment = 36000
Paid in cash = 36000 /4 =9000 and balance 36000-9000=27000 to be signed promissory note.
Answer:
The 38,800 mattresses need to be produced in the first quarter (January, February, March) of 2013
Explanation:
The computation of the mattresses need to be produced in the first quarter is shown below:
= Total sales in first quarter + ending finished goods inventory - beginning finished goods inventory
where,
Total sales in the first quarter = January Sales + February sales + March sales
= 10,000 + 14,000 + 13,000
= 37,000 units
Ending finished goods inventory = April sales × percentage given
= 16,000 × 30%
= 4,800 units
And, the Beginning Finished goods inventory is 3,000 units
Now put these values to the above formula
So, the value would be equal to
= 37,000 + 4,800 - 3,000
= 38,800 units
Answer:
Difference in difference estimate = 50 - 5% = 45 %
Explanation:
a) Data and Calculations:
Market A Market B
Sales 240 410
Sales rise 360 430
Rise difference 120 20
Percentage of rise 50% 5%
120/240 x 100 = 50%
20/41 x 100 = 4.878% or 5%
Therefore, the Difference in difference estimate = 50 - 5% = 45 %
One can then say that the free warranties in market A brought about a difference in difference of 45% in Market A when compared to the no warranties in Market B. This can be seen from the presented data. Sales in A rose from 240 units to 360 units, an increase of 120 units or 50%. Sales in market B only rose from 410 to 430, an increase of 20 units or 5%. This difference in difference estimator shows the effect of the free warranty on market A and market B. This means that the firm could do better by introducing the free warranties for its product in market B, all things being equal.