In an outsourcing decision, developing and negotiating the outsourcing contract: is not an area where supply managers believe th
1 answer:
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Answer:
amount of depreciation expense = $49,560
so correct option is A.) $49,560
Explanation:
given data
purchased cost = $341,560
useful life = 8 years
residual value = $19,000
machine produce = 768,000 bolts
1st year produced = 114,000 bolts
2nd year production increased = 118,000 units
to find out
amount of depreciation expense that should be recorded for the second year
solution
we get here amount of depreciation expense for 2nd year that is express as
amount of depreciation expense = ( purchased cost - residual value ) × 2nd year production increased ÷ machine produce ......................1
put here value we get
amount of depreciation expense = $341,560 - $19,000 ×
amount of depreciation expense = $49,560
so correct option is A.) $49,560
Answer:
a. Decrease
b. Decline
c. Exit
d. No change
Explanation:
The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.
a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.
b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.
c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.
d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.
