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2 years ago

Which conclusion does this graph most support?

Business

1 answer:

ahrayia [7]2 years ago

5 0

Answer:

C. Product A has more elastic demand than product B.

Explanation:

The graph plotted above shows the quantity demanded for 2 products in relation to their prices.

Looking at the graph, we visually conclude that product A is more responsive to a change in price, compared to how responsive product B is to a change in price.

Invariably, a change in the price of commodity A causes a greater change in the quantity demanded, compared to a change in quantity demanded for product B, with almost the same change in price.

Option C is the answer.

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A seller uses a periodic inventory system, and on April 4, it sells $5,000 in merchandise on credit (when its cost is $2,400) to

RoseWind [281]

Answer:

Periodic Inventory System

Journal Entries

April 4 Debit Accounts receivable $5,000

Credit Sales revenue $5,000

To record the sale of goods on credit, terms of 3/10, n/30.

April 5 Debit Sales returns $500

Credit Accounts receivable (cash) $500

To record the return of goods for a cash refund.

Explanation:

a) Data and Analysis:

April 4 Accounts receivable $5,000 Sales revenue $5,000 credit terms of 3/10, n/30.

April 5 Sales returns $500 Accounts receivable (cash) $500

b) The seller uses a periodic inventory system. Therefore, the cost of goods sold will not be recorded on April 4 until April 30, when there will be a physical count of inventory to determine the closing inventory. With the beginning and ending inventories together with the purchases account, the cost of goods sold can then be calculated.

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2 years ago

Suppose that the firms in the perfectly competitive oat industry are currently receiving a price of $2 per bushel for their prod

Delicious77 [7]

Answer:

The firms make a $1 per bushel in profit.

Explanation:

When the price is greater than the long run total costs, then a profit is being generated. This helps the firms in the perfectly competitive oat industry to remain in the industry since they are making 100% profit on their investments, which they may not get elsewhere. If they are not making such large profits, some of the firms may decided to leave the industry and relocate their resources to other industries where they can make enough profits.

3 0

2 years ago

On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t

Lilit [14]

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted 92000

X Fair value on date of grant 5

Total compensation expense 460000

Years 3

Compensation expense per year 1 53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

3 0

2 years ago

n seeking a balance between the opportunity for profit and the potential for loss, a financial manager is dealing with the conce

shepuryov [24]

Answer:

The correct answer is risk-return.

Explanation:

The relationship between profitability and risk can be stated in other terms. When faced with a high level of uncertainty about the outcome of an investment, one might expect higher remuneration to outweigh the high risk.

For example, if you lend money to someone with a timely repayment history of your loans, you could accept a low interest rate in return. However, if you lend money to a manifestly unreliable person, you are likely to demand higher returns to compensate for the increased risk of default. This is often called the risk-benefit balance.

8 0

2 years ago

Exercise 6-4A Calculate inventory amounts when costs are rising (LO6-3) [The following information applies to the questions disp

VladimirAG [237]

Answer:

1. Ending inventory = $2,408; Cost of goods sold = $16,837; Sales revenue = $22,770; and Gross profit = $5,933.

2. Ending inventory = $2,094; Cost of goods sold = $17,151; Sales revenue = $22,770; and Gross profit = $5,619.

3. Ending inventory = $2,293; Cost of goods sold = $16,952; Sales revenue = $22,770; and Gross profit = $5,818.

Explanation:

Note: This question is not complete. The complete question is therefore presented before answering the question. See the attached pdf file for the complete question.

Explanation to the answer is now presented as follows:

1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Note: See part 1 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using FIFO.

First In, First Out (FIFO) refers to an inventory accounting method in which inventory items purchased first are sold first, while the one that are purchased last are sold last.

In the attached excel file, since the inventory purchased on Oct. 6 is purchased last, the number of unit of inventory purchased on Oct. 6 sold is calculated by deducting the sum of the beginning inventory and inventory purchased before Oct. 6 from the total inventory sold as follows:

Number of unit of inventory purchased on Oct. 6 that are sold = Number of units sold - (Beginning inventory + Apr. 7 Purchases + Jul. 16 Purchases) = 414 - (45 + 125 + 195) = 49

Therefore, the number of ending inventory is obtained as follows:

Number of unit of ending inventory = Number of inventory purchased on Oct. 6 - Number of inventory purchased on Oct. 6 sold = 105 – 49 = 56

Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770

From the attached excel file, we have:

Cost of goods sold = $16,837

Ending inventory = $2,408

Therefore, we have:

Gross profit = Sales revenue - Cost of goods sold = $22,770 - $16,837 = $5,933

2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Note: See part 2 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using LIFO.

Last In, First Out (LIFO) refers to an inventory accounting method in which inventory items purchased last are sold first, while the one that are purchased first are sold last.

In the attached excel file, the number of unit of inventory purchased on April 7 that are sold and the ones remaining that are NOT sold that forms part of ending inventory are calculated as follows:

Number of unit of inventory purchased on April 7 that are sold = 414 – (195 + 105) = 114

Number of unit of inventory purchased on April 7 that are NOT sold = Number of unit of inventory purchased on April 7 - Number of unit of inventory purchased on April 7 that are sold = 125 – 114 = 11

Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770

From the attached excel file, we have:

Cost of goods sold = $17,151

Ending inventory = $2,094

Therefore, we have:

Gross profit = Sales revenue - Cost of goods sold = $22,770 - $17,151 = $5,619

3. Using weighted average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 4 decimal places and all other answers to the nearest whole number.)

Note: See part 3 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using weighted average cost.

Weighted average cost method refers to a method of costing inventory in which the total cost of the goods available for sale is divided by the total number of units available for sales in order to obtain weighted average cost per unit.

In the attached excel file, weighted average cost per unit is therefore calculated and rounded to 4 decimal places as follows:

Weighted average cost per unit = $19,245 / 470 = $40.9468

Number of unit of ending inventory = Total number of units available for sales – Number of unit sold = 470 – 414 = 56

Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770

From the attached excel file, we have:

Cost of goods sold = $16,952

Ending inventory = $2,293

Therefore, we have:

Gross profit = Sales revenue - Cost of goods sold = $22,770 - $16,952 = $5,818

Download pdf

8 0

2 years ago