Answer:
Freight-absorption
Explanation:
Based on the information provided within the question it can be said that the Texas Granite Company in Dallas should use Freight-absorption pricing in this situation. This is a pricing strategy in which the seller takes responsibility for all the freight charges that the company incurs in order to attract the amount of business that they hope to achieve. Since company's that are looking to buy see 0 freight charges it becomes a deal since they are saving money as opposed to buying from another company that charges the freight charges to the buyer.
Annual Compound Formula is:
A = P( 1 + r/n) ^nt
Where:
A is the future value of the investment
P is the principal investment
r is the annual interest rate
<span>n is the number of
interest compounded per year</span>
t is the number of years the money is invested
So for the given problem:
P = $10,000
r = 0.0396
n = 2 since it is semi-annual
t = 2 years
Solution:
A = P( 1 + r/n) ^nt
A = $10,000 ( 1 + 0.0396/2) ^ (2)(2)
A = $10000 (1.00815834432633616)
A = $10,815.83 is the amount after two years
Answer:
January Overheads are <u>under-applied</u> by $2,000.
Explanation:
When,
Actual overheads > Applied overheads we say overheads are under-applied.
Actual overheads < Applied overheads we say overheads are over-applied.
Where,
Applied overheads = Predetermined overhead rate × Actual Activity
Therefore,
Applied overheads (January) = 120% × $40,000
= $48,000
Actual overheads (January) = $50,000.
Conclusion
It can be seen that from the above : Actual overheads : $50,000 > Applied overhead : $48,000, therefore overheads were under-applied.
Amount of under-applied overheads = $50,000 - $48,000
= $2,000
Answer:
Ceteris paribus assumption: Demand curves relate the prices and quantities demanded assuming no other factors change
Explanation:
Ceteris paribus is a Latin phrase meaning “other things being equal”. If all else is not held equal, then the laws of supply and demand will not necessarily hold.
Demand is the amount of some product a consumer is willing and able to purchase at each price.
IMPACT THE SUBSTITUTION EFFECT AND THE REAL INCOME
A substitute is a good or service that can be used in place of another good or service. A lower price for a substitute decreases demand for the other product and increases the quantity demanded for tomatoes
A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
