Answer:
The correct answer is option b.
Explanation:
The equilibrium price and quantity of a product are determined through the interaction of demand and supply curves of the product.
An increase in the supply will cause the supply curve to shift to the right. While a decrease in the demand will cause the demand curve to move to the left.
This will cause the price of the product to decline. The change in the quantity, on the other hand, depends on the magnitude of change in the demand and supply.
I found the same question but it had choices. The choices were:
a) retail bank
b) commercial bank
c) savings and loans
d) credit union
The type of banking institution that is most suitable for Daryl is CREDIT UNION.
Credit Union is defined as a member-owned financial cooperative. They offer banking services but these are offered to their members. They grant loans and interest paid on those loans are also given to member-owners as dividends.
Daryl will not only earn interest from his checking and savings accounts, he will also earn dividends. Any bank fees issued by the cooperative will be returned to them in the form of dividends.
Answer and Explanation:
Respected Sir,
Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions
As per your requirement please find the explanation below:
Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.
Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.
Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.
The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.
Regards
ABC
Answer:
B. a decrease of $30,000
Explanation:
The computation of company’s overall profit is shown below:-
To continue = Contribution margin - Fixed cost
= $65,000 - $70,000
Loss = $5,000
To Discontinue = Unavoidable fixed cost ÷ 2
= $70,000 ÷ 2
= $35,000
So, Net Loss = To continue (Loss) - To Discontinue
= $5,000 - $35,000
= $30,000
Therefore there is a decrease of $30,000
Answer:
Internal Rate of Return (IRR) 9,00%
Explanation:
We use excel or a spreadsheet to calculate this ratio. See document attached.
We use a cash flow to solve this problem.
At moment 0 we have the investment cost , in this case $365,695. From period 1 to period 9, we have incomes o benefits of $61,000. Then, we calculate the Net cash flow that is the difference between benefits and cost.
We use all the result (positive and negative) in Net cash flow to get the IRR.
