Answer: $170,000
Explanation:
According to the historical cost concept, the original cost value of a asset (i.e. land) should be recorded in the books. The original cost refers to the cost of a asset at the time of purchasing. As per the principle of historical cost, assets are always recorded as a original cost or historical cost or acquisition cost.
But when a person sold the asset then he will consider the fair market value.
Answer:
$22,000
Explanation:
Current liabilities are debts that a company must pay within a twelve month period.
This company's current liabilities are:
- Accounts payable $15,000
- Interest payable $7,000
Total current liabilities = $15,000 + $7,000 = $22,000
Since the note payable is due in 18 months, it is not considered a current liability.
Answer:
It should continue the production in the short-run.
Explanation:
Given the unit produced by Mars Inc. = 100000 boxes.
The selling price of boxes = $4 per box.
The variable costs = $3 per box.
The fixed costs = $150000
The total sales revenue = number of boxes × selling price
= 100000 × 4
= $ 400000
In the short run, the firm should continue its production because it still covers the variable costs.
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
Answer:
an increase in the working population
Explanation:
The Production possibilities frontier (PPF) is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
The PPF can shift either inward or outward.
An outward shift is associated with an increase in output while an inward shift is associated with a reduction in output.
Factors that cause the PPF to shift
1. changes in technology. technological progress leads to outward shift of the PPF. introduction of "fiber optic" technology would shift the PPF outward.
2. changes in available resources. a land reclamation program would increase the land available for production and this would increase output. While an explosion destroying a chemical plant would reduce output and lead to an inward shift of the PPF
3. changes in the labour force. A decrease in unemployment would increase output and shift the the PPF outward
Working population is the number of people between 15-59.
