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2 years ago

When production is characterized by opportunity costs, the resulting production possibilities frontier will be a straight line.

1 answer:

7 0

People often produce goods. When production is characterized by opportunity costs, the resulting production possibilities frontier will be a straight line is a true statement.

<h3>What is opportunity cost in terms of production?</h3>

The opportunity cost of transporting or changing from one efficient combination of production to another that is better is simply defined as how much a specific good that is one goods is given up so that a person can get more of another kind of goods.

Opportunity cost is said to be seen when spending more money on an item.

Due to the above, when production is seen to be more of constant opportunity cost, the resulting production possibilities frontier is known to occur on a straight line.

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The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production

Illusion [34]

Answer:

See below

Explanation:

The computation of carrying value on the balance sheet of the ending inventory of finished goods under variable costing is seen below;

Before that, we have to determine the unit cost

Unit fixed manufacturing overhead = $120,400 ÷ 6,020 units = $20

Then, the difference will be;

= Unit fixed manufacturing overhead × change in inventory in units

= $20 × (6,020 units - $5,920)

= $20 × 100 units

= $2,000 less than absorption costing

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3 years ago

Murray Exports (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 10,000 units per yea

dalvyx [7]

Answer:

Murray Exports (U.S.)

A. The short-run impact of each pricing strategy is as follows:

Alternative 1 Alternative 2

Reduce Price to $21,867 Maintain Price at $24,000

Gross profit $38,670,000 $54,000,000

Reduction in Gross Profit $21,330,000 $6,000,000

B. (2) maintain the same dollar price of $24,000, raise the yuan price in China to Yuan 216,000 per unit to offset the devaluation, and experience a 10% drop in sales unit volume.

Explanation:

a) Data and Calculations:

Current exchange rate = Yuan 8.20/US$

Current exports of heavy crane equipment per year to China = 10,000

US unit price of printer in dollars = $24,000

Chinese unit price of crane equipment in Yuan equivalent = Yuan 196,800 ($24,000 * Yuan 8.20)

Unit price of crane equipment in Chinese Yuan when the currency is devalued = Yuan 216,000 ($24,000 * Yuan 9.00)

The reduced dollar price with devaluation, when Yuan price is maintained = $21,867 (Yuan 196,800/9.00)

Before Devaluation of Chinese Yuan:

Sales volume 10,000

Sales revenue $240,000,000 (10,000 * $24,000)

Direct costs 180,000,000 (10,000 * $18,000) (75% of $24,000)

Gross profit $60,000,000

Alternative 1 Alternative 2

Reduce Price to $21,867 Maintain Price at $24,000

Sales volume 10,000 units 9,000 (10,000 * 90%) units

Sales revenue $218,670,000 $216,000,000 ($24,000 * 9,000)

Direct costs 180,000,000 162,000,000 ($18,000 * 9,000)

Gross profit $38,670,000 $54,000,000 ($6,000 * 9,000)

Direct costs = $180m ($18,000 * 10,000) = $162m ($18,000 * 9,000)

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2 years ago

The CAPM/SML and Discounted Cash Flow approaches to estimating the cost of retained earnings will be the same under which of the

ValentinkaMS [17]

Answer

(A) The company's common stock price is in equilibrium.

Explanation

The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders.

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3 years ago

Accounting for par, stated, and no-par stock issuances LO P1

sp2606 [1]

Answer:

Rodriguez Corporation

Journal Entries:

a. Debit Cash $176,900

Credit Common Stock $128,000

Credit Additional Paid-in Capital $48,900

To record the issue of 16,000 shares at $8 par value.

b. Debit Cash $176,900

Credit Common Stock $176,900

To record the issue of 16,000 shares at no par or stated value.

c. Debit Cash $176,900

Credit Common Stock $64,000

Credit Additional Paid-in Capital $112,900

To record the issue of 16,000 shares at $4 state value.

1. Issue of 16,000 shares of no par, no stated value common $94,900 cash.

Journal Entry:

Debit Cash $94,900

Credit Common Stock $94,900

To record the issue of 16,000 shares at no par or stated value.

2. Record the issue of 16,000 shares of $2 stated value common stock for $94,900 cash.

Journal Entry:

Debit Cash $94,900

Credit Common Stock $32,000

Credit Additional Paid-in Capital $62,900

To record the issue of 16,000 shares of $2 stated value for cash.

Explanation:

a) Data and Calculations:

Number of common stock shares issued = 16,000

Cash collected from the issue = $176,900

Date of issue = February 20.

b) When shares are issued at no par or stated value, the corresponding credit for the Common Stock account equals the cash realized. When the par value is less than the issued price, the corresponding credit above the par value is credited to the Additional Paid-in Capital account.

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3 years ago

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whet

Kay [80]

Answer:

Core PCE deflator inflation rate;

the Output gap

Explanation:

Goals of Monetary Policy

There are several goals of monetary policy. They includes maximum employment, stable prices, and moderate long-term interest rates. Usually in the long run, the above goals works in harmony and empower each other, but in the short run, they might be in conflict. The main goal of this policy is price stability as it is the source of maximum employment and moderate long-term interest rates.

The Fed has two possible instruments:they includes;

1. Monetary base

2. Federal funds rate

Output Gap

When this gap is positive, an inflationary gap, the inflation rate increases drastically or accelerate. This will make the Fed to consider raising the federal funds rate. It is said that If the output gap is negative, a recessionary gap, inflation might ease. Thereby making the Fed to consider lowering the federal funds

The Stables Prices Goal

The Fed do put close attention to the CPI removing fuel and food which is the core CPI. The rate of increase in the core CPI is simply termed core inflation rate. The Fed do believes that the core inflation rate provides a better measure of the underlying inflation patterns and a better prediction of future CPI inflation.

5 0

3 years ago