Answer:
The journal entries are as follows:
(i) On December 31, 2017
Unrealized gain or loss income A/c Dr. $10,800
To estimated purchase commitment liability $10,800
(To record other income and expenses)
Workings:
Unrealized gain or loss income = 36,000 × ($3 - $2.7)
= 36,000 × $0.3
= $10,800
(ii) On January 1, 2018
Raw material A/c (36,000 × $2.7) Dr. $97,200
Estimated purchase commitment liability A/c Dr. $10,800
To accounts payable $108,000
(To record the materials received in January 2018)
Answer:
Intra-Industry Specialization
Dynamic Comparative Advantage
Product Life Cycle Theory
Explanation:
Ice wine is a special spirit that can only be made during a few months in the winter. The nations of Fruzenton and Grappovia are in different hemispheres, and each produces ice wine. During each nation’s winter, its ice wine industry produces enough to meet domestic demand and export to the other country. The ice wine exchanged between the two nations is nearly identical. Intra-Industry Specialization
For many years, the nation of Stilettopia’s high-heel shoe producers have struggled in the international market because strict labor laws have made it hard to get productivity out of Stilettopians. In an effort to stimulate its industry, legislators in Stilettopia approve a bill that reduces the minimum wage and extends the number of hours shoe laborers can work in a day. Once the new policies take effect, Stilettopian high-heel shoe makers have lower costs than international competition and are able to reduce prices to the point that there is demand to export their shoes. Dynamic Comparative Advantage
Since the turn of the century, nearly all X-ray machines purchased by hospitals have been made in Alloway. However, engineers in Osteoville recently designed an X-Ray machine that produces much more accurate results, leading to fewer malpractice cases and more reliable diagnoses. These new X-ray machines quickly become the industry standard. As a result of this, the production of X-ray machines is thriving in Osteoville, while firms in Alloway lose market share and begin trying to develop a new source of advantage Product Life Cycle Theory
Answer: 7.12%
Explanation:
Effective Annual Interest rate is the nominal interest rate adjusted for the number of compounding periods a financial product will experience in a period of time.
To calculate the Effective Annual Rate one can use the following formula,
Effective Rate of Interest = (1+r/m)^m - 1
where r is the rate and
M is the no of compounding periods per year which in this case would be 2 because the payments are semi annual
Plugging in figures would give us,
Effective Rate of Interest = (1+0.07/2)^2 - 1
=0.0712
= 7.12%
If you need any clarification do comment or react.
Answer:
The phenomenon that is likely to occur is Crisis Prevention. as a result of a contingency plan put in place ahead of time by the proactive Marketing Team Lead
Explanation:
The first stage in a crisis management model pre-crisis phase.
The pre-crisis phase is is concerned with prevention and preparation.
A proactive leader develops a contingency plan ahead of an impending crisis.
A business contingency plan is a course of action that an organization would take if an unexpected event or situation occurs. It helps to ensure preparedness for unforeseen circumstances like the one highlighted here.
Faced with the pressure to come up with an impressive advertising campaign within forty eight hours or face bankruptcy, a proactive team lead would likely save the day with contingency plan he had already worked out.
Answer:
Urgency / Postponement leads to customer inelastic demand of ice melt.
Explanation:
Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price
Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,
Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price
Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.
