SOLVED Abel and Carr formed a partnership and agreed to divide initial
However, if the government also imposes a price ceiling in addition to the subsidy, it can create a problem. In the case of theater tickets, the price ceiling could be set below the subsidized price, leading to excess demand. This shortage means that the quantity demanded exceeds the quantity supplied, resulting in some consumers being unable to purchase tickets at the controlled price.
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The wind turbines are expected to last five years, have a salvage value of $36,000, and be depreclated using the straight-line method. Compute depreclation expense for the last three months of the first year. Developing a strong safety culture will be critical, as will engaging with policymakers and regulators to ensure that the technology is well-understood and widely accepted. Ultimately, the benefits of automated automobiles are likely to outweigh the drawbacks, and the auto industry must move forward with the development of these vehicles. Some benefits of automated automobiles include improved safety, reduced congestion, and the ability to move more people on the same infrastructure. In activity-based costing, an activity can involve several related tasks.
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To calculate the expected cash collections from customers in December, we need to consider the cash collection pattern and the budgeted sales for November and December. Distribution channels were limited, which made it difficult for Gillette to reach its target customers. The company was not able to penetrate markets in other countries as effectively as it had done in the shaving industry. Social media has the Abel And Carr Formed A Partnership And Agreed To Divide potential to increase understanding and empathy among people of different nations. Social media and social networks have greatly impacted globalization, with their ability to connect people and ideas across the globe.
- A drop in the price of substitutes and a rise in income (for a normal good) will increase the market demand for a product.
- The expected cash collections from customers in December are $221,000.
- To record the investment of $250,000 in Dakota Company, Carolina Company should debit the investments account.
- The cash collections for credit sales are expected to be 70% in the month of sale and 30% in the month following the sale.
- In activity-based costing, an activity can involve several related tasks.
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(Round your response to two decimal places and use a negative sign if necessary.) Now suppose this country has an0.75 0 What do we know about the change in inflation, π-π(-1). The present equilibrium quantity is the quantity exchanged at the equilibrium price. If the quantity supplied increases by 30 units at each price compared to the initial supplied 1, we can update the table to reflect the new equilibrium price and quantity.
It helped to raise the bar in terms of quality in the industry.In 1996, Gillette acquired Duracell in order to diversify its product line and gain a foothold in the battery industry. Hence, the company’s cost of common equity if all of its equity comes from retained earnings is 9.75%. “Combine losses” and “split up gains” are related to prospect theory, which is a behavioral economics theory that explains how individuals make decisions under risk and uncertainty. In summary, business models are essential for external stakeholders as they provide valuable information about a company’s value proposition, revenue generation, and overall sustainability. They help stakeholders make informed decisions, evaluate the company’s potential, and determine their level of engagement with the organization. Personal value refers to the subjective worth or importance that someone places on a good or service.
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- This is known as the diminishing marginal utility of wealth, where the additional satisfaction gained from each successive unit of wealth diminishes as wealth increases.
- A strategic procurement plan is a business document that outlines the procurement strategies and objectives of a company.
- It is deducted from the cost of the asset to calculate the net book value of the asset.
- The concept of “combine losses” refers to the tendency of individuals to prefer situations where losses are consolidated or aggregated.
- Therefore, the statement that absolute music was created for sponsors and the public is false.
A rise in the price of substitutes decreases the demand for a product because it makes the substitute product more attractive to the consumer. If the price of a substitute for a product goes up, consumers will switch to that substitute product and decrease the demand for the original product. In the labor market, sellers (job seekers) can send signals to buyers (employers) to convey information about their product quality (skills, abilities, and qualifications). However, the supply curve would be vertical, representing the limited supply of theater tickets. To alleviate this issue, the government can implement a subsidy to lower the price for consumers.
Abel and Carr formed a partnership and agreed to divide initial capital equally, even though Abel…
In the opening-discussion case of Chapter 1, “An Interconnected World,” social media is credited with playing a significant role in facilitating global collaboration and networking. According to the bonus approach, this difference is treated as a bonus to Carr for joining the partnership. To adjust the capital accounts, Carr’s unidentifiable asset account is debited for the amount of the bonus. In this case, the bonus amount is $16,000, so Carr’s unidentifiable asset should be debited for $16,000. The bonus approach is used to adjust the capital accounts when partners contribute assets with different values. In this case, Abel contributed $100,000 and Carr contributed $84,000 in identifiable assets.
Procurement refers to the process of finding and purchasing goods and services from outside sources for use in the business process.
Approved Answer
Yes, Li Company should accept this special order since the contribution margin per unit is $20, which exceeds the fixed cost per unit of $0. By accepting this order, the company will generate additional income amounting to $68,000, thereby contributing to its profits. Furthermore, accepting the special order will not have any impact on the company’s regular sales, as there is sufficient production capacity available to fulfill this order.
A rise in the price of complements decreases the demand for the main good. For example, if the price of petrol goes up, the demand for cars goes down because petrol and cars are complementary goods. A rise in income (for a normal good) increases the purchasing power of consumers and leads to an increase in demand for normal goods, such as food, clothing, and shelter. If people earn more income, they will buy more normal goods because they can now afford them. To find the present equilibrium price, we look for the price at which the quantity demanded equals the quantity supplied.