Answer:
D. higher profits will induce expanded production.
Explanation:
If the price of a good increases and the cost remains the same ,profits earned would increase.
For example if price of a pen was initially $5 and rose to $7. The cost of making a pen is $3. Total profit would rise from $2 to $4.
According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the. quantity supplied. Therefore, the higher price would attract more producers and production would increase. Existing producers would also increase output.
I hope my answer helps you.
Answer:
The adjusted bank and book balance is shown below:-
Explanation:
The computation of the adjusted bank and book balance is given below:-
Bank statement balance Book balance
Opening balance $26,960 $26,620
Add: Transit Deposit $3,000 Earned Interest $150
Less: Outstanding check 4000 Error on check $810
($4,900 - $4,090)
Adjusted Balance $25,960 $25,960
<u>Answer:</u>
<u>"You will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization." </u>
<u>Explanation:</u>
Remember, a rational decision-making process is one that is not based on emotions but on carefully considering the facts. In other words, it involves forming conclusions based on examined evidence, even if they go against our initially perceived outcome.
Therefore, in this case, you will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization.
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:
$209,600
Explanation:
Calculation of the net income (or loss) for the year
Stockholders’ equity = Total Capital + Net Income - Dividend
Therefore the Net Income will be:
Using this formula
Net income= Stockholders’ equity + Dividend - Total Capital
Where,
Stockholders’ equity =$343,200
Dividend =$20,000
Total Capital =$153,600
Let plug in the formula
Net income= $343,200 + $20,000 - $153,600
Net income= $209,600
Therefore the net income (or loss) for the year will be $209,600
