Answer:
The idea that a higher price means the buying power of income has been reduced.
Explanation:
The income effect is defined as the change in consumption of goods of services after a change of income. If income grows, it is expected that the consumption of goods and services will also grow (this can be measured by the marginal propensity to consume), and viceversa.
If prices rise, the buying power of income will be reduced even if income has grown. If prices rises even more than income, the buying effect of income will fall even more. This two statements can be both explained by the income effect concept.
The break-even point is the level of sales at which profits are equal. The company sold 38,000 units in the eastern region and 13,000 units in the western region
Equal gross revenue means no loss or profit for small businesses. This means that we have reached a stage of production where the cost of production equals the revenue of the product.
To calculate the breakeven point in units, use the following formula: Points (Sales) = Fixed Costs ÷ Contribution Margin
The break-even point (BEP) helps the business owner/CFO to realistically check how long it will take to see a return on an investment. For example, calculate or model the minimum turnover required to cover the cost of entering a new location or new market.
Learn more about BEP at
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Depletion is used as a deduction from the gross income
So if we're wrong in putting the depletion data, it will be very likely that the income statement for the following period would be overstated
Answer:
Goodwill = $35,000
<u>Journal</u>
J1
Investment in Marino $300,000 (debit)
Cash $300,000 (credit)
J2
inventory $10,000 (debit)
equipment $230,000 (debit)
Trade Receivable $25,000 (debit)
Goodwill $35,000 (debit)
Investment in Marino $300,000 (credit)
Explanation:
Goodwill is the excess of Purchase price over fair value of Assets and Liabilities transferred in a Business combination agreement.
Goodwill = Purchase price - Net Assets Transferred (fair value)
= $300,000 - ($10,000+$230,000+$25,000)
= $35,000
Answer:
O = amount of own brand
L = amount of local brand
N = amount of national brand
maximize = 0.97O + 0.83L + 0.69N
constraints:
space ⇒ O + L + N = 324
N ≥ O + L
N ≥ 3O
L ≤ 120
O,L,N ≥ 0
O,L,N are integers (whole numbers)
optimal solution using Solver = 540 + 108L + 162N
maximum profit = $253.80
