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1 year ago

If a firm decides to increase the depth of its offerings to address consumer preferences, what will it do

Business

1 answer:

Shtirlitz [24]1 year ago

7 0

Answer: consumers find it unfair for firms to increase prices after an increase in demand".

Explanation: Economists established 2 explanations of why companies do not increase their prices even if they can make higher profits.

First it was discovered that some products have the characteristic that the amount of product that a customer wants to buy can depend on the amount of the product that other people are consuming.

And then it was discovered that most people are satisfied that companies raise prices because of an increase in costs, but consider it unfair to raise prices as a result of increased demand.

Explanation:

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Exercise 06-2 Computing unit and inventory costs under variable costing LO P1 Trio Company reports the following information for

storchak [24]

Answer:

Trio Company

1. Using Variable Costing:

a. Product Cost per unit = $35 (see below)

b. Cost per unit of finished goods = $35 (see below)

2. Using variable cost, the cost of ending finished goods inventory = 6,000 * $35 = $210,000

b. Using total cost, the cost of ending finished goods inventory =

6,000 * $43 = $258,000

Explanation:

a) Calculation of Costs:

Cost per unit Total Costs

Direct materials $15 $300,000

Direct labor $16 $320,000

Variable overhead $4 $80,000

Total Variable $35 $700,000

Fixed Cost $8 $160,000

Total Cost $43 $860,000

b) Cost of Goods sold 14,000 x $43 = $602,000 using total cost per unit.

c) Cost of Goods sold 14,000 x $35 = $490,000 using variable cost per unit.

d) Variable costing is a method of assigning only variable costs to a product while the fixed overheads are treated as period expenses.

8 0

3 years ago

If Canadian Dollar (CAD) = 14.46 Mexican Peso (MXP) and 1 MXP = .07 CAD, how much would a Canadian tourist pay in CAD for a hote

disa [49]

Answer:

A. 70

Explanation:

1000/0.07=70

6 0

2 years ago

Natick Industries leased high-tech instruments from Framingham Leasing on January 1, 2021. Natick has the option to renew the le

lesantik [10]

Answer:

1-Jan-21

Dr Right- of-use asset $250,177

Cr Lease payable $250,177

1-Jan-21

Dr Lease payable $11,000

Cr Cash $11,000

31-Mar-21

Dr Interest expense $2,392

Dr Lease payable $8,608

Cr Cash $11,000

31-Mar-21

Dr Amortization expense $12,509

Cr Right-of-use asset $12,509

Explanation:

Preparation of the appropriate entries for Natick Industries from the beginning of the lease through March 31, 2021.

Journa Entry- Lease-Natick Industries

1-Jan-21

Dr Right- of-use asset

($11,000 * PVAF at 1%for 0-20)

($11000*22.74336) $250,177

Cr Lease payable $250,177

(To Record Lease at Inception)

1-Jan-21

Dr Lease payable $11,000

Cr Cash $11,000

(To Record First Lease Payment made)

31-Mar-21

Dr Interest expense

[($250,177 - 11000 )*1%] $2,392

Dr Lease payable $8,608

($11,000-$2,392)

Cr Cash $11,000

(To Record Second Lease Payment made)

31-Mar-21

Dr Amortization expense

($250,177/ 20) $12,509

Cr Right-of-use asset $12,509

(To Record Amortisation Expense)

4 0

2 years ago

How can a company economically benefit by producing green products?

Crank

Answer:

the correct answer is C. by earning tax benefits

Explanation:

it is a common practice in many countries to provide tax rebates, reliefs and even special lower tax rates for environmentally friendly green products and environmental friendly production processes. this is a main way a company can benefit by having a green business model.

3 0

2 years ago

Tom walks bethany's dog once a day for $50 per week. bethany values this service at $60 per week, while the opportunity cost of

s344n2d4d5 [400]

The total surplus is A. $30.

The surplus is the amount of money that is let over after all requirements have been met/paid. This can also be an excess amount of production that is over the amount of money demanded. The opportunity cost is $30, which is what Tom values his time being worth that he is not getting due to dog walking.

5 0

3 years ago