Four people are applying for a job. This chart shows the company’s favorite characteristic of each of these job applicants:

A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fall

Scorpion4ik [409]

Answer:

$2,600

Explanation:

Calculation of the value of the company's inventory at the lower of cost or market.

Current FIFO inventory ×Net realizable value

Where,

Current FIFO inventory= 200 units

Net realizable value $13 per unit

Therefore,

200 units *$13 per unit = $2,600.

Lower cost of market can be said to mean that the inventory cost at either the purchase cost or replacement value .

Bases on the information given in the question, replacement cost is lower or lesser than the purchase cost which is why the inventory units are been cost at the replacement value of $13 each.

6 0

2 years ago

Suppose there is a simultaneous increase in the demand for rice and increase in the supply of rice. Which of the following will

patriot [66]

Answer:

C) The market learing price may rise, fall, or stay the same, but the equilibrium quantity will rise.

Explanation:

An increase in demand would lead to an increase in demand and price.

An increase in supply would lead to an increase in supply and a fall in price.

The combined effect would lead to an increase in equilibrium quantity but the effect on equilibrium price would be indeterminate.

I hope my answer helps you

6 0

3 years ago

Loop 1604 Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is

Charra [1.4K]

Answer:

Flexible budget variance for Sales Revenue = $3,960 Favorable

Explanation:

Provided budget is static budget, firstly for calculating flexible budget variance for Sales Revenue.

For this flexible budget is made of same level of quantity as of actual level.

therefore Flexible budget sales = 990 units @ $70 per unit price will be same as of static budget.

Therefore Variance = Standard Flexible Budgeted Sales - Actual Sales

Standard Flexible Budgeted Sales = 990 $\times$ $70 = $69,300

Actual Sales Revenue = 990 $\times$ $74 = $73,260

Since actual revenue is more than budgeted sales this is favorable.

Flexible Budget Variance for Sales Revenue = $69,300 - $73,260 = $3,960

Since actual revenue is more than budgeted revenue therefore this is a favorable variance.

Flexible budget variance for Sales Revenue = $3,960 Favorable

3 0

3 years ago

Cambridge Co. uses the allowance method. During January 2019, Cambridge writes off a $640 customer account balance when it becom

yan [13]

Answer:

The correct answer is option (a).

Explanation:

According to the scenario, computation of the given data are as follows:

Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.

Here, both accounts are or balance sheet items.

So, it will not affect any expenses account.

8 0

3 years ago

Concord Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developi

hoa [83]

Answer:

$8,586,000

Explanation:

market price for Littlelaser $100 per unit

units sold 106,000

total revenue generated by Littlelaser = $100 x 106,000 = $10,600,000

required investment = $8,056,000

since the investors require a return on investment of 25%, then the profits generated by Littlelaser should be:

ROI = net income / total investment

25% x $8,056,00 = net income

net income = $2,014,000

target cost = total revenue - net income = $10,600,000 - $2,014,000 = $8,586,000

total revenue $10,600,000

<u>- total cost $8,596,000 </u>

net income $2,014,000

7 0

3 years ago