Answer: If the price of bagels is reduced "a.The demand curve for doughnuts will shift to the left."
Explanation: Being substitute goods The decrease in the price of bagels causes consumers to prefer to consume bagets before donating, therefore the demand for donuts will shift to the left (decrease).
Answer:
The company should accept the idea because profit will increase by $24,000.
Explanation:
A company is currently selling 10,000 units of product monthly for $40 per unit.
The unit contribution margin is $27.
The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month.
The unit contribution margin is the difference between selling price and variable cost per unit.
An increase in the selling price of $5 will cause the contribution margin to increase by $5, from $27 to $32.
Profits is the product of contribution margin and number of output.
At initial price, the profit was
= 
= $270,000
At the new price the profit will be
= 
- $50,000
= $344,000 - $50,000
= $294,000
The increase in profit
= $294,000 - $270,000
= $24,000
Answer: True.
Explanation:
The business environment is the totality of all the factors that influence the smooth running of a business. The business environment comprises of both the internal and external factors that determines if a business is going to succeed. An increase in the minimum wage is an external factor that also alters the internal structure of a business, therefore it causes a change in business environment.
Answer:
12,600
Explanation:
Concept of Equivalent units of production measures the number of units in terms of percentage completion in input elements of the process.
<u>The equivalent units of production for materials</u>
Note : all materials are issued at the beginning of the process, therefore materials are 100% complete in both Widgets transferred out and Ending widgets.
Calculation :
transferred out (8,600 × 100%) = 8,600
ending inventory (4,000 × 100%) = 4,000
total = 12,600
Therefore, the equivalent units of production for materials in the Machining Department is 12,600.
Answer:
$8,892.34
Explanation:
This question is an ordinary annuity type of question. It can be solved using a financial calculator. Input the following to solve for the future value of the annuity deposits;
Recurring payment; PMT = -1,000
Duration of investment; N = 2*4 = 8 quarters
One-time present cashflow; PV = 0
Quarterly interest rate ; I = 12% /4 = 3%
then compute the future value ; CPT FV = $8,892.34
