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2 years ago

The supply of product x is elastic if the price of x rises by

1 answer:

8 0

The answer to this question is <span>5% and the quantity supplied rises by 7%.
A product is considered as elastic if the change in prices will also affect the changes in total supply.
Usually, this type of products are not considered unique or rare and there are a lot of substitute for this product in the market</span>

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On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The ra

sveta [45]

Answer:

a. Nov 11, 2017

Dr Cash $4,900

Cr sales $4,900

Nov 30, 2017

Dr Warranty expense $294

Cr Estimated warranty Liabilities $294

Dec 9, 2017

Dr Estimated warranty Liabilities $196

Cr Cash $196

Dec 16, 2017

Dr Cash $14,700

Cr sales $14,700

Dec 29, 2017

Dr Estimated warranty Liabilities $392

Cr Cash $392

Dec 31, 2017

Dr Warranty expense $882

Cr Estimated warranty Liabilities $882

b. Jan 5,2018

Dr Cash $9,800

Cr Sales$9,800

Jan 17,2018

Dr Estimated warranty Liabilities $462

Cr Cash $462

Dec 31,2018

Dr Warranty expense $588

Cr Cash $588

Explanation:

a. Preparation of the journal entries to record above transactions and adjustments for 2017

Nov 11, 2017

Dr Cash $4,900

Cr sales $4,900

(Being to record razors sold for cash)

Nov 30, 2017

Dr Warranty expense $294

Cr Estimated warranty Liabilities $294

($4900*6%)

(Being to record warranty expense)

Dec 9, 2017

Dr Estimated warranty Liabilities $196

Cr Cash $196

(14 razors*14)

(Being to replaced 14 razors)

Dec 16, 2017

Dr Cash $14,700

Cr sales $14,700

(Being razors sold for cash)

Dec 29, 2017

Dr Estimated warranty Liabilities $392

Cr Cash $392

(28 razors*14)

(Being to replaced 28 razors)

Dec 31, 2017

Dr Warranty expense $882

Cr Estimated warranty Liabilities $882

($14,700*6%)

(Being to record warranty expense)

b. Preparation of the journal entries to record above transactions and adjustments for 2018

Jan 5,2018

Dr Cash $9,800

Cr Sales$9,800

(Being to record razors sold for cash)

Jan 17,2018

Dr Estimated warranty Liabilities $462

Cr Cash $462

(33 razors*14)

(Being to replaced 33 razors)

Dec 31,2018

Dr Warranty expense $588

Cr Cash

(6%*$9,800) $588

(Being to record warranty expense)

5 0

2 years ago

Suppose the government introduces a $4 per unit tax on the supply of automobile tires (suppliers are responsible for submitting

omeli [17]

Answer:

The correct answer is: price elasticity of supply and demand.

Explanation:

The government introduces a $4 per unit tax on the supply of automobile tires. The tax is imposed on the suppliers. The effect of the imposition of tax will remain the same whether the incidence falls on the buyer or seller. The imposition of tax will lead to an increase in the price of the commodity.

The burden shared by the buyers and sellers depends on the elasticity of demand and supply. If demand is more elastic than the supply, the supplier will bear the greater burden and vice versa.

6 0

2 years ago

You are evaluating two different silicon wafer milling machines. The Techron I costs $285,000, has a three-year life, and has pr

KonstantinChe [14]

Answer:

EAC Techron I = -$141,050

EAC Techron II = -$138,181

Explanation:

Techron I costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. Salvage value $55,000, use straight line depreciation.

annuity factor = [1 - 1/(1 + r)ⁿ] / r = [1 - 1/(1 + 0.11)³] / 0.11 = 2.4437

depreciation expense per year = ($285,000 - $55,000) / 3 = $76,667

cash outflow years 1 and 2 = [($78,000 + $76,667) x (1 - 24%)] - $76,667 = ($154,667 x 0.76) - $76,667 = $40,880

cash outflow year 3 = [($78,000 + $76,667) x (1 - 24%)] - $76,667 - $55,000 = ($154,667 x 0.76) - $76,667 - $55,000 = -$14,120

NPV = -285,000 - 40,880/1.11 - 40,880/1.11² + 14,120/1.11³ = -285,000 - 36,829 - 33,179 + 10,324 = -344,684

EAC = NPV / annuity factor = -344,684 / 2.4437 = -$141,050

Techron II costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. Salvage value $55,000, use straight line depreciation.

annuity factor = [1 - 1/(1 + r)ⁿ] / r = [1 - 1/(1 + 0.11)⁵] / 0.11 = 3.6959

depreciation expense per year = ($495,000 - $55,000) / 5 = $88,000

cash outflow years 1 through 4 = [($45,000 + $88,000) x (1 - 24%)] - $88,000 = ($133,000 x 0.76) - $88,000 = $13,080

cash outflow year 5 = [($45,000 + $88,000) x (1 - 24%)] - $88,000 - $55,000 = ($133,000 x 0.76) - $88,000 - $55,000 = -$41,920

NPV = -495,000 - 13,080/1.11 - 13,080/1.11² - 13,080/1.11³ - 13,080/1.11⁴ + 41,920/1.11⁵ = -495,000 - 11,784 - 10,616 - 9,564 - 8,616 + 24,877 = -510,703

EAC = NPV / annuity factor = -510,703 / 3.6959 = -$138,181

4 0

2 years ago

Which of the following statements about brand names is true?

Liono4ka [1.6K]

Answer:

Which of the following statements about brand names is true?

1. Brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand.

Options 2 and 3 are wrong:

2. Brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions.

⇒ FALSE, just because a product has a certain brand it doesn't make it better and therefore more expensive. There are brands that consumers associate with luxury and expensive products, while there are other brands that consumers recognize while not necessarily being more expensive than others, e.g Coke.

3. It is always rational to prefer brand names over generic substitutes.

⇒ FALSE, it depends on the type of product. Generic medicines as just as effective as banded medicines.

Read the following example and determine whether it illustrates a common critique or defense of advertising.

This illustrates a common <u>CRITIQUE</u> of advertising. This ad targets young people that are susceptible to believing exaggerated or materialistic aspects of a product that cannot be proven correct or wrong.

6 0

2 years ago

Which of the following items is reported on the statement of cash flows under financing activities?a. Declaration of a cash divi

denpristay [2]

Answer:

B. Payment of cash dividend

Explanation:

Payment of stock dividend, declaration of cash dividend or stock split does not involve outflow of cash. Hence, they do not form part of cash flow statement.

A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout.

5 0

2 years ago