<span><span>1.
</span>With the rise in the cost of machinery or raw
materials, the good becomes more expensive to produce. So the correct option
for this question is option “c”. The cost of machinery and raw materials are
directly proportional to the increase in cost of any goods.</span>
<span><span>
2.
</span>The introduction or advent of new technology lowers
cost and increases supply. So for this question the correct option is “b”. New technology
always helps to increase the production with lowering of cost and that is the
reason behind adopting new technology. </span>
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Answer:
Effect in income= $5,400
Explanation:
Giving the following information:
It costs Waterway Company $26 per unit ($18 variable and $8 fixed) to produce its product.
A foreign wholesaler offers to purchase 5400 units at $21 each.
Waterway would incur special shipping costs of $2 per unit if the order were accepted.
Waterway has sufficient unused capacity to produce the 5400 units.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.
Unitary cost= $18 + $2= $20
Effect in income= 5,400*(21 - 20)= $5,400
Answer:
$0
Explanation:
Data provided in the question
Generate loss from an otherwise qualified business activity is $10,000
And, the taxable income is $40,000
Since as we can see that there is a loss in qualified business activity so the QBI deduction is zero as it is calculated only on case of profit
And, the taxable income represents the fixed income not the business income so it would not be considered
The lower the price the more willing people are to supply the product, and the cheaper it will be to supply it, but it also could make consumers think the product is junk.
