Answer:
C. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.
Explanation:
THIS IS THE COMPLETE QUESTION BELOW
Which of the following statements is most accurate?
A. In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials.
B. The FIFO method includes the cost of the beginning Work in Process inventory account in calculating cost per equivalent units.
C. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.
D. The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period.
E. It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.
EXPLANATION
FIFO method which is known as
(First In, First Out) can be regarded as an asset-management as well as valuation method , this method follows a process whereby any assets that is first produced or acquired are the asset that are sold first or first disposed. For the purposes of tax, FIFO gives assumption that assets that has oldest costs are usually entered into cost of goods sold I.e (COGS) income statements. Fifo can be calculated by finding the cost of oldest inventory, then multiply it by the amount of inventory sold.
It should be noted that The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory
a. Sold merchandise for cash (cost of merchandise $28,797). $ 51,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $360). 600 c. Sold merchandise (costing $4,750) to a customer on account with terms n/60. 10,000 d. Collected half of the balance owed by the customer in (c). 5,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.
Answer:
I guess that you need the journal entries:
a.
Dr Cash 51,200
Cr Sales revenue 51,200
Dr COGS 28,797
Cr Inventory 28,797
b.
Dr Sales revenue 600
Cr Cash 600
Dr Inventory 360
Cr COGS 360
c.
Dr Accounts receivable 10,000
Cr Sales revenue 10,000
Dr COGS 4,750
Cr Inventory 4,750
d.
Dr Cash 5,000
Cr Accounts receivable 5,000
e.
Dr Sales allowances
Cr Accounts receivable
Data concerning Farm Corporation's single product appear below: Selling price per unit $ 170.00 Variable expense per unit $ 66.30 Fixed expense per month $ 127,490 The break-even in monthly dollar sales is closest to:
Answer:
1229.4
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$ 127,490 / ( $ 170 - $ 66.30) = 1229.4
If a nail salon hires an additional worker, that worker can service 8 additional customers per day. The average nail service fee is $30. The most the salon would be willing to pay that groomer is
Answer:
Therefore, the salon will pay = $240
Explanation:
Below is the given values:
Service additional worker per day = 8 customers per day
Average fee = $30
The firm would like to pay the groomer up to the amount that is generated by them so the amount generated 30 x 8 = $240
Therefore, the salon will pay = $240
1. Define equilibrium.
Answer:
In chemistry:
Chemical equilibrium is defined as the condition in the course of a reversible chemical reaction in which no net change in the amounts of reactants and products occurs
In physics:
Equilibrium is defined as the condition of a system when neither its state of motion nor its internal energy state tends to change with time.
A simple mechanical body is said to be in equilibrium if it experiences neither linear acceleration nor angular acceleration; unless it is disturbed by an outside force, it will continue in that condition indefinitely.
the condition of a system when neither its state of motion nor its internal energy state tends to change with time is called equilibrium.
Hope it is helpful to you
Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 2,400 Materials costs $ 14,500 Conversion costs $ 6,600 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % Units started into production during the month 11,100 Units completed and transferred to the next department during the month 10,000 Materials costs added during the month $ 173,600 Conversion costs added during the month $ 243,600 Ending work in process inventory: Units in ending work in process inventory 3,500 Percent complete with respect to materials 90 % Percent complete with respect to conversion 30 % The cost per equivalent unit for materials for the month in the first processing department is closest to:
Answer:
Ice Cream Corporation
The cost per equivalent unit for materials for the month in the first processing department is closest to:
= $14.30.
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process 2,400 $ 14,500 $ 6,600
Percentage of completion
Beginning work in process 75% 20%
Started into production 11,100
Units in production 13,500
Completed and transferred 10,000
Ending work in process 3,500 90% 30%
Costs added during the month $173,600 $243,600
Total costs of production
Beginning work in process $ 14,500 $ 6,600
Costs added during the month 173,600 243,600
Total costs of production $188,100 $250,200
Equivalent units of production:
Completed and transferred 10,000 10,000 (100%) 10,000 (100%)
Ending work in process 3,500 3,150 (90%) 1,050 (30%)
Equivalent units of production 13,150 11,050
Cost per equivalent unit:
Total costs of production $188,100 $250,200
Equivalent units of production 13,150 11,050
Cost per equivalent unit $14.30 $22.64
3. When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This finding: A. Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant. B. Contradicted the Heckscher-Ohlin theory as the United States was relatively labor-abundant. C. Was never duplicated by other studies and has thus been labeled a paradox. D. Fit the predictions of the Heckscher-Ohlin theory concerning the trading patterns of a capital-abundant country.
Answer:
A. Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant.
Explanation:
When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This finding: "Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant."
This is because Heckscher-Ohlin theory states that countries usually export commodities, and resources they have in excess, while in return, they import the commodities and resources they need.
However, given that the United States is a country that was relatively capital-abundant, Wassily Leontief's finding is considered to be a contradiction.
importance of settlement
Answer:
The function of a settlement helps to identify the economic and social development of a place and can show its main activity. Most large settlements have more than one function though in the past one function was maybe the most important in defining the success and growth in importance of the settlement.
The function of a settlement helps to identify the economic and social development of a place and can show its main activity. Most large settlements have more than one function though in the past one function was maybe the most important in defining the success and growth in importance of the settlement.
Explanation:
The main functions of a settlement are:
Market town – where farmers will buy and sell their goods and materials
Mining town – where minerals and fuel might be extracted
Industrial town – where raw materials will be processed into manufactured products
Port – a place where goods can be imported and exported
Route centre – a place where several important roads/ transport links will meet
Service centre – a place that will provide for the main needs and services for people living in a particular area
Cultural/ Religious centre – a place that will welcome people from different places for learning or religious observance
Administrative centre – where government offices and departments will be located
Residential town – a place where people will live but will travel to work somewhere else
Tourist resort – where people visit to relax and enjoy themselves
3.How does the theory of efficient production apply to managers of government bureaus or departments that are not run for profit
Answer:
The theory of efficient production applies to managers of government bureaus or departments that are not run for profit in the following way:
1. The theory helps them to ensure that production resources are optimally allocated to generate value.
2. The theory emphasizes that wastages must be minimized.
3. Efficiency also ensures that processes, policies, and programs are carried out at the right time on each occasion.
Explanation:
Government bureaus or departments require to make decisions about the resources that they require for government services and the value of the output of these services to the public. The managers ensure that costs are not so much greater than the value created from deploying scarce resources. The best allocation of resources must always be decided to achieve value for money.
Correll Company, which operates a mail-order clothing business, is physically located in State L. This year, the firm shipped $18 million of merchandise to customers in State R. State R imposes a 6 percent sales and use tax on the purchase and consumption of retail goods within the state.
Required:
a. Do State R residents who purchased Firm L merchandise owe use tax on their purchases?
b. If State R could legally require Firm L to collect a 6 percent tax on mail-order sales made to residents of the state, how much additional revenue would the state collect? Explain the reasoning behind your answer.
Answer:
Correll Company
a. Yes State R residents who purchased Firm L (out-of-state) merchandise owe use tax on their purchases.
b. State R would collect $1,080,000 additional revenue ($18 million * 6%) if Correll was required to collect the use tax at the point of sale and then remit the tax collected to State R.
Explanation:
a) Data and Calculations:
Cost of merchandise to customers in State R = $18 million
State R's sales and use tax on the purchase and consumption of retail goods within the state = 6%
Amount that Correll could collect for State R = $1,080,000 ($18 million * 6%)
b) Note that Correll (Firm L) collecting the State R use tax does not affect State R residents' legal liability to pay the use tax. Unfortunately, not many people actually remit their self-assessed use tax.
How do systems serve different management groups in a business and how do systems that link the enterprise improve organizational performance
Answer:
In simple words, Enterprise apps are created to bring together a variety of activities and procedures. To facilitate coordination and decision-making, enterprise systems combine a company's major internal business operations into an unified software platform . Supply chains administration software assists a company in managing its relationships with vendors in order to improve product planning, procurement, production, and supply of commodities.
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $20 million, and production and sales will require an initial $3 million investment in net operating working capital. The company's tax rate is 35%. What is the initial investment outlay
Answer:
the initial investment outlay is $23,000,000
Explanation:
The computation of the initial investment outlay is given below:
Initial Investment Outlay = New Equipment Cost + Requirement of Working Capital
= $20,000,000 + $3,000,000
= $23,000,000
hence, the initial investment outlay is $23,000,000
We simply added the above two items
An abundance of utility-focused blogs exist, posting negative information about utilities in general and even about ABC Utility. Which of the following is NOT a wise response to control the negative blogs?
a. Repost the negative blogs that appear in other places, and argue against the content.
b. Create a company sponsored blog and post blogs with useful information.
c. Monitor the blogs to gather information about public perception.
d. Ask the CEO to frequently write a blog post regarding the values and vision of the organization.
Answer:
a
Explanation:
Blogs are a good medium that can be used by firms to disseminate information about their goods and services.
Blogs are also a good way to gather information about the perception of consumers to a company's goods and services
A company can make use of blogs to disseminate positive information about their goods and services by creating a company sponsored blog and post blogs with useful information. It would be and advantage if key personals in the firm frequently write a blog post about the firm e.g. the values and vision of the organization.
For any positive interest rate the present value of a given annuity will be less than the sum of the cash flows, and the future value of the same annuity will be greater than the sum of the cash flows.
a. True
b. False
A researcher is asked to determine whether or not a productivity objective (in dollars) of better than $75,000 per employee is possible. A productivity test is done involving 20 employees. What conclusion would you reach
Answer:
Hence the null hypothesis is not rejected.
We conclude that productivity objective (in dollars) is not better than $75,000 per employee.
Explanation:
Single sample t-test ( upper tail test)
[tex]H_0: \mu = 75000\\H_1: \mu > 75000[/tex]
N=20
Mean =75500
Sd=18968.117
[tex]t = \frac { (\bar x - \mu)} {\frac {s} {\sqrt{n}}}\\\\t = \frac{(75500-75000)}{\frac{18968.117}{\sqrt{20}}}\\t=0.1179[/tex]
DF= 20-1=19
Table value of t at 0.05 level of significance =1.7291
Calculated t=0.1179 < table value 1.7291
The null hypothesis is not rejected
We conclude that productivity objective (in dollars) is not better than $75,000 per employee
One advantage of countercultures is that they:_____.
a. ensure that corporate mergers occur without any culture clashes.
b. prevent organizations from developing a corporate culture.
c. maintain surveillance over and critically review the company's dominant culture.
d. rarely exist in real organizations.
Answer:
c. maintain surveillance over and critically review the company's dominant culture.
Explanation:
Counterculture is a sociopolitical term that represent the dissent point lies between the dominant and alternative value system in order to develop the collective voice for considering the minority
Also the employees who have the counter culture belief so it shows the goods source for checking out over and above to the dominant one
Therefore the option c is correct
ABC company manufactures two products in one process. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:
Product X Product Y Total
Allocated joint processing costs $16,800 $16,800 $33,600
Sales value at split-off point $24,000 $24,000 $48,000
Costs of further processing $15,000 $18,700 $33,700
Sales value after further processing $35,500 $45,100 $80,600
What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point?
a. ($3,500)
b. $27,700
c. $20,500
d. $3,700
Answer:
a. ($3,500)
Explanation:
Particulars for Product X Amount
Sales value after further processing $35,500
Less: Sales value at split-off point $24,000
Total incremental revenue $11,500
Less: Total incremental processing costs $15,000
Financial (disadvantage) of further processing ($3,500)
So, the financial disadvantage for the company of processing Product X beyond the split-off point is $3,500.
Swifty Corporation has 46,500 shares of $13 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $18. The dividend shares are issued on December 31. Prepare the entries for the declaration and issuance of the stock dividend. (
Answer:
Common stock dividend distributable = Par * Number of shares * % dividend
= 13 * 46,500 * 15%
= $90,675
Stock Dividend = Number of shares * market price * % dividend
= 46,500 * 18 * 15%
= $125,550
Date Account Title Debit Credit
Dec, 1 Stock Dividend $125,550
Common Stock Dividend Distributable $90,675
Paid in Capital in excess of Par- $34,875
Common stock
Date Account Title Debit Credit
Dec, 31 Common Stock Dividend Distributable $90,675
Common Stock $90,675
Producer surplus directly measures a. the well-being of buyers and sellers. b. the well-being of society as a whole. c. the well-being of sellers. d. sellers' willingness to sell.
Answer:
c. the well-being of sellers.
Explanation:
A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.
Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.
On the other hand, consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Hence, an export subsidy will increase producer surplus.
In conclusion, producer surplus directly measures the well-being of sellers.
You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You received dividends totaling $1.04 per share. What is your total capital gain on this investment?a. $5,544 44b. -$3,672c. -$5,544d. -$4,608e. $4,608
Answer:
d. -$4,608
Explanation:
The computation of the total capital gain is shown below:
Total capital gains is
= (End value - Beginning value) × 900 shares
= ($34.08 - $39.20) × 900 shares
= -$4,608
Hence, the total capital gain on this investment is -$4,608
Therefore the option d is correct
And, the same is to be relevant
Pontchartrain Company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. The company uses effective-interest amortization. Interest expense reported on the 2017 income statement will total
Answer:
$1,568,498
Explanation:
First calculate the Amont of discount
Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855
Now prepare the bond amortization
The Bond Amortization schedule is attached with this answer, please find it.
Now calculate the interest expense for 2017
Interest Expense 2017 = $784,165.80 + $784,332.43
Interest Expense 2017 = $1,568,498.23
Interest Expense 2017 = $1,568,498
Ted, a used car dealer, entered into a written agreement to sell a car to Debra, a sixteen year old high school junior. The agreement provided that Ted would replace any defective parts for one year. Debra agreed to pay Ted $200 per month for three years (which she has done). The age of majority for the jurisdiction is eighteen. After six months, Debra's transmission fails but Ted refuses to replace it. If Debra (or a representative on her behalf) brings a lawsuit against Ted, it is more likely than not that the court will rule:_____.
A. Ted will prevail because Debra was a minor when the contract was formed.
B. The contract is illegal.
C. The contract is void.
D. Debra will prevail, as Ted is bound to the contract.
Answer:
D. Debra will prevail, as Ted is bound to the contract.
Explanation:
A minor can enter a contract that is not prohibited by law for minors. For example sale of alcohol or tobacco is prohibited.
When a minor enters a contract they can either honor it or void it before they come of age.
This is different for adults that cannot disaffirm a contract.
So in this scenario where the agreement provided that Ted would replace any defective parts for one year, failure to do so will see Debra prevailing in court. Since she did not void the contract
Nieto Company’s budgeted sales and direct materials purchases are as follows.
Budgeted Sales Budgeted D.M. Purchases
January $250,600 $32,200
February 238,100 45,300
March 299,600 38,300
Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.
A) Prepare a schedule of expected collections from customers for March
B) Prepare a schedule of expected payments for direct materials for March.
Answer:
Nieto Company
A) Schedule of expected collections for March:
30% Cash Sales $89,880
Credit Sales $167,307
Total collections for March $257,187
B) Schedule of expected payments for direct materials for March:
40% month of purchase $15,320
60% ffg month $27,180
Total expected payments $42,500
Explanation:
a) Data and Calculations:
January February March Total
Budgeted sales $250,000 $238,100 $299,600
Cash collections:
30% Cash $75,000 $71,430 $89,880
70% Credit $175,000 $166,670 $209,720
Cash collections from credit sales:
Month of sale, 10% $17,500 $16,667 $20,972
Following month, 50% 87,500 83,335
Second month, 36% 63,000
Total collections for March (credit sales) $167,307
Budgeted D.M. Purchases $32,200 $45,300 $38,300
Cash payments:
40% purchase month $12,880 $18,120 $15,320
60% ffg month $19,320 $27,180
Total payments $12,880 $37,440 $42,500
Selected sales and operating data for three divisions of different structural engineering firms aregiven as follows: Division A Division B Division C Sales $ 6,900,000 10,900,000 10,000,000 Average operating assets 1,725,000 5,450,000 2,500,000 Net operating income 414,000 1,090,000 325,000 Minimum required rate of return19.00 % 20.00 % 16.00 % A. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. B. Compute the residual income (loss) for each division.
Answer and Explanation:
The computation is shown below:
A.
Return on investment = Margin × Turnover
Now
= (Net operating income ÷Sales) × (Sales ÷ Average operating assets)
Division A = ($414,000 ÷ $6,900,000) × ($6,900,000 ÷ $1,725,000)
= 6% × 4
= 24.00%
Division B = ($1,090,000 ÷ $10,900,000) × ($10,900,000 ÷ $5,450,000)
= 10% × 2
= 20.00%
Division C = ($325,000 ÷ $10,000,000) × ($10,000,000 ÷ $2,500,000)
= 3.25 × 4
= 13.00%
B.
Residual Income = Net operating income - (Minimum required rate of return × Average operating assets)
Division A = $414,000 - (19% × $1,725,000)
= $414,000 - $327,750
= $86,250
Division B = $1,090,000 - (20% × $5,450,000)
= $1,090,000 - $1,090,000
= $0
Division C = $325,000 - (16% × $2,500,000)
= $325,000 - $400,000
= ($75,000)
Materials cost per yard: standard, $1.90; actual, $2.04 Standard yards per unit: standard, 4.69 yards; actual, 5.03 yards Units of production: 9,400 Calculate the direct materials price variance. a.$1,316.00 unfavorable b.$6,619.48 unfavorable c.$6,619.48 favorable d.$6,172.04 favorable
Answer:
b.$6,619.48 unfavorable
Explanation:
Calculation to determine the direct materials price variance
First step is to calculate the Total number of actual quantity used
Total number of actual quantity used = 9400×5.03
Total number of actual quantity = 47,282
Now let determine the Material price variance
Using this formula
Material price variance = ( Standard price - Actual price ) × Actual quantity used
Let plug in the morning
Material price variance= ( $1.90 - $2.04 ) × 47,282
Material price variance=-0.14×47,282
Material price variance = -$6,619.48 unfavorable
Therefore the direct materials price variance is
-$6,619.48 unfavorable
Which of the following is an example of a functional structure? Multiple Choice Fred owns a diner and has three employees. Borrowit Lending has a business division and a consumer division. Shelter Semiconductors has offices in Berlin, Tokyo, Chicago, and London. Leopard Industries has a plastics group, an electronics group, and a transportation group. At Mark’s Furniture, all the carpenters are in one group, and all the upholsterers are in another.
Answer: At Mark’s Furniture, all the carpenters are in one group, and all the upholsterers are in another.
Explanation:
Functional structures refer to the grouping of company departments based on what the labor involved do for the company i.e. their functional expertise.
Mark's company is therefore using a functional structure because it groups its workforce by their functional expertise with carpenters in one group and upholsters in another.
Most companies follow this strategy which is why companies have departments such as accounting, human resources, marketing and production.
The neoclassical view holds that long-term expansion of potential GDP due to _______________________ will determine ____________________. Group of answer choices
Answer:
economic growth; the size of the economy.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. Also, Gross Domestic Products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
The new classical theory also known as the neoclassical economic theory is one that repudiates and tends to restructure the John M. Keynes theory of macroeconomics, popularly referred to as the Keynesian Macroeconomics theory.
The new classical theory argues that efficient demand and supply is the most important feature or key behind the level of output, pricing, and consumption of goods and services by the people at a specific period of time in a country. Also, the new classical theory assumes that the wages of the employees in a country is flexible in contrast to the Keynesian macroeconomic theory.
The neoclassical view posits that long-term expansion of potential Gross Domestic Products (GDP) due to economic growth will significantly determine the size of a country's economy.
However, the economy cannot sustain production above its potential Gross Domestic Products (GDP) in the long run.
A distinguishing characteristic of the neoclassical view from other economic theory such as the Keynesian Macroeconomics theory, is flexibility of wages and prices over time.
The number of people employed in one country is 230 million, with a total number of unemployed people at 40 million. The total population for the country is 500 million. What is the unemployment rate? Group of answer choices
Answer:
Unemployment rate = 14.81 %
Explanation:
Unemployment is defined as the number of people that are willing and able to work in an economy but that are not able to get employment.
If is used as a measure of the level of economic growth of a country.
Mathematically:
Unemployment rate = (Unemployed) ÷ (Economically active people) *100
Economically active people are employed plus unemployed.
That is 230 million + 40 million = 270 million
Therefore
Unemployment rate = (40/270) * 100
Unemployment rate = 14.81 %
MC Qu. 131 At Midland Company's break-even point... At Midland Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:
Answer:
selling price per unit = $80
Explanation:
Giving the following information:
Company's break-even point of 9,000 units
Fixed costs are $180,000
Total variable costs= $540,000
First, we will calculate the unitary variable cost:
Unitary variable cost= 540,000 / 9,000
Unitary variable cost= $60
Now, the unitary selling price, using the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
9,000 = 180,000 / (selling price per unit - 60)
9,000selling price per unit - 540,000 = 180,000
9,000selling price per unit = 180,000 + 540,000
9,000selling price per unit = 720,000
selling price per unit = 720,000/9,000
selling price per unit = $80
Answer:
$80
Explanation:
The first step is to find the variable cost
= 540,000/9000
= 60
Therefore the unit sales price can be calculated as follows
= 180,000/90,000+60
= 20+60
= $80
Hence the unit sales price is $80
A monopolist that practices perfect price discrimination:_________.
A. charges each consumer the rnaximum price the consumer is willing to pay.
B. drives consumer surplus to zero
C. produces the perfectly competitive level of output.
D. All of the above are correct.
E. Only A and B are correct.
Answer:
D. All of the above are correct.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
Hence, a monopolist that practices perfect price discrimination:
A. Charges each consumer the maximum price the consumer is willing to pay.
B. Drives consumer surplus to zero
C. Produces the perfectly competitive level of output.
Answer:
D. All of the above are correct.
Explanation:
Hope this helps
You want to have $5 million in real dollars in an account when you retire in 20 years.
The nominal return on your investment is 10 percent and the inflation rate is 3 percent.
What is the real amount you must deposit each year to achieve your goal?
Answer:
The real amount that you must deposit each year to achieve your goal is:
= $54,662.78.
Explanation:
a) Data and Calculations:
Required amount in real dollars = $5 million
Nominal return on investment = 10%
Inflation rate = 3%
Real return on investment = 13% (10 + 3)
From an online financial calculator:
N (# of periods) 20
I/Y (Interest per year) 13
PV (Present Value) 0
FV (Future Value) 5000000
Results
PMT = $54,662.78
Sum of all periodic payments $1,093,255.61
Total Interest $3,906,744.3
