Answer:
$
Material used 2,500
Direct labour 5,000
Overhead applied 200
Cost of goods sold 7,700
Explanation:
The overhead applied is the difference between cost of goods sold and cost of material used and direct labour. The cost of goods sold is $7,700 while the cost of material and labour is $7,500. The difference of $200 represents the overhead applied.
Answer:
The appropriate response is "Pure competition".
Explanation:
- Pure competition seems to be an economically efficient circumstance where there is already a massive quantity of international customers and retailers as well as the manufacturer would be ready for deployment.
- Even though both a significant quantity of products as well as extremely similar or defined consumer items seem to be characteristics of pure competition.
Answer:
Profit earning ratio of MMC = 10%
Explanation:
Given:
Current stock price = $100
Yearly profit on each share = $10
Profit earning ratio (P\E ratio) =?
Computation of profit earning ratio:
Profit earning ratio (P\E ratio) = Current stock price / Yearly profit on each share
Profit earning ratio (P\E ratio) = $100 / $10
Profit earning ratio (P\E ratio) = 10
It is computed that MMC's Profit earning ratio is nearer to the industry averages P/E ratio so, the investor can wait for some time to purchase this stock.
Answer:B. if transaction costs are low, private bargaining will result in an efficient solution to the problem of externalities.
Explanation:
The coarse theorem:
If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.
Answer: C. II and III
Explanation:
Under the Security Act of 1933, new corporate bond issues of such high amounts are not exempt from the Act and so need to be registered with the Securities and Exchange Commission (SEC).
Also, as the amount exceeds $50,000,000, the issue is subject to the Trust Indenture Act of 1939 which states that the issuer should include certain protective provisions that are recommended by the SEC in order to protect bondholders. The adherence to these covenants will then be monitored by an independent trustee that is to be appointed by the Issuer.
