Answer: a. When inventory purchase costs are rising.
Explanation:
Last In First Out is an inventory stock valuation method where newer inventory is sold first and older inventory are sold last.
When a LIFO liquidation occurs, it means that the company has sold off its new stock and are now selling the older one.
This will lead them to have a lower cost of goods sold as the older stock is usually cheaper. If Inventory purchase costs are increasing in the market, then sales prices will have to increase as well. The company will sell at this new price but will still have that lower cost of goods sold.
This means that they would have more profits as a result which will lead to more taxes being charged on them.
Answer: The scenario exemplifies <em><u>simplification.</u></em>
Explanation:
Simplification is a process used to make something easier to understand. It can also be used to help something more simple to learn and also to easier to do.
With this scenario, the manager is interacting the exact same way as they always do no matter where they are located. This is helpful because the manager does not need to learn or remember to change the way they act when meeting someone new in business.
Answer:
Euphoria produces 12 million bushels of corn and 16 million pairs of jeans
Euphoria's opportunity cost of producing 1 bushel of corn is 1/4 pair of jeans
Euphoria's opportunity cost of producing 1 pair of jeans is 4 bushels of corn
Euphoria will produce only jeans, total production 64 million pairs of jeans. The total production of jeans between the two countries increased by 12 million per week.
Contente produces 6 million bushels of corn and 36 million pairs of jeans
Contente's opportunity cost of producing 1 bushel of corn is 1/2 pair of jeans
Contente's opportunity cost of producing 1 pair of jeans is 1/2 bushels of corn
Contente will produce only corn, total production 24 million bushels.
The total production of corn between the two countries increased by 6 million bushels.
Contente trades 14 million bushels of corn for 42 million pairs of jeans from Euphoria:
- Contente's gain = 42 - (14 x 1/2 = 7) = 35 million pairs of jeans
- Euphoria's gain = 14 - (42 x 1/4 = 10.5) = 3.5 million bushels of corn
Consumption with or without trade:
- Contente ⇒ with trade 10 million bushels of corn and 42 million pairs of jeans. Without trade 6 million bushels of corn and 36 million pairs of jeans. Total gain = 4 million bushels of corn and 6 million pairs of jeans.
- Euphoria ⇒ with trade 14 million bushels of corn and 22 million pairs of jeans. Without trade 12 million bushels of corn and 16 million pairs of jeans. Total gain = 2 million bushels of corn and 6 million pairs of jeans.
Answer: $7,500
Explanation:
In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.
Starting off we will calculate the amount of savings they will make by using the new machine,
= $12,000 x 5 years
= $60,000
Calculating the Incremental income therefore we have,
= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)
= $7,500
The incremental income of buying the new machine is $7,500.
If you need any clarification do comment.
