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2 years ago

Compare transnet with a perfect competitor in terms of price and output and profit

1 answer:

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Transnet SOC Ltd is a rail, port, and pipeline company in Johannesburg.

Price: This company is a price maker, therefore, in terms of price, Transnet perfect compitetor is a price taker.

Output: Transnet has the ability to decide the quantity of their output and they have many competitors on this one.

Profit: Transnet might be able to increase their profit but in a competition it would be hard because customers might switch to the competitor.

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Delar Co. completed its year-end physical count of inventory. The inventory was valued at first-in, first-out (FIFO) costs and t

jekas [21]

Answer:

D. $490,000

Explanation:

The inventory was valued at first-in, first-out (FIFO) costs and totaled $500,000.

Adjustments:

The goods worth $10,000 (1,000 units x $10 cost) were shipped and billed to a customer meaning that company has already recorded the sales in its income statement therefore they became the property of the customer and should not have been included in the inventory count. The $10,000 should be removed from the inventory recorded bringing the inventory balance at $490,000 ($500,000 - $10,000).

The goods worth $30,000 (6,000 units x $5 cost) will not be included in the total inventory count because the inventory is held on consignment for one of the company's supplier and the ownership of the goods belongs to the consignor (in this case, the supplier) until they are sold. The goods appear in the inventory records of the consignor (in this case, supplier) not the consignee (in this case, the company). In this case, the company has not included the goods in its inventory cost therefore no adjustment is necessary.

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2 years ago

Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2021, for $283,294,72

otez555 [7]

Answer:

The net amount of the liability Myriad would report in its balance sheet at December 31, 2021 is $287,524,896

Explanation:

First, we need to determine the amount of discount on the bond at the time of issuance

Discount on Bond = Face value - Issuance value = $320,000,000 - $283,294,720 = $36,705,280

June 30, 2021

Now we will use the effective interest method to calculate the amortization of discount on the bond.

Amortization of Discount = ( Carrying Value x Market yield ) - ( Face value x Coupon rate ) = ( $283,294,720 x 12% ) - ( $320,000,000 x 10% ) = $33,995,366.4 - $32,000,000 = $1,995,366.4 = $1,995,366

Carrying value = $283,294,720 + $1,995,366 = $285,290,086

December 31, 2021

Now we will use the effective interest method to calculate the amortization of discount on the bond.

Amortization of Discount = ( Carrying Value x Market yield ) - ( Face value x Coupon rate ) = ( $285,290,086 x 12% ) - ( $320,000,000 x 10% ) = $34,234,810.32 - $32,000,000 = $2,234,810.32 = $2,234,810

Carrying value = $285,290,086 + $2,234,810 = $287,524,896

5 0

1 year ago

Under Fisher, between 1993-1997, Kodak moved closer to customers when it produced and launched a digital print station to retail

ehidna [41]

Answer:

b. Forward integration.

Explanation:

Forward integration: is a type of marketing strategy where the company directly distribute or supply its product to the retailer, this is done so as to be to sell directly to the retailer without going through the wholesaler. This is achieved by having warehouses that is closer to the retailers where the products can be sold to the retailers or directly selling the product to the retailer from the company.

6 0

2 years ago

Read 2 more answers

A small company has developed a specialized software product that it configures especially for each customer. New customers usua

galben [10]

Answer:

It might be a good idea for the company to make the software open source because it will lead to reduction of cost of production and the effort that goes into it. The task of customizing the software for each individual customers raises development cost and is a tough task to accomplish.

In term of making the software an open source, the source code will be provided to the customer and they themselves can make the desired changes in the software. This will considerably reduce their prices and also expand their market in the areas of companies with lower budgets.

8 0

2 years ago

Mr.Chan has an income of $20 that he is spending on donuts andcheese in such amounts that he derives 25 utils of satisfactionfro

Elenna [48]

Answer: D. can say that Chan is buying the utility-maximizing amounts of donuts and cheese.

Explanation: Utility is the amount of satisfaction derived from consuming a product or service. In the question above, Chan is deriving the same amount of satisfaction/utillity (25 utils) from the quantity of donuts and cheese that he buys. There is no reason to change the ratio in which he buys them.

If he was deriving more satisfaction from one of the two, we could say that he should buy more of that item to maximize his satisfaction. But this is not the case.

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2 years ago