The Journal Entries are as follows:
Account Titles and Explanation Debit Credit
To record the premium inventory:
Inventory of Premiums $68,970.00
Cash $2,129,400.00
Sales Revenue
To record the sales:
$2,129,400.00
Premium Expense:
To record the expense associated with the sale:
$34,155.00
Inventory of Premiums:
Premium Expense:
To record the expense associated with the sale:
$39,360.00
Premium Liability:
To record the premium liability:
$39,360.00
To stimulate the sales of its Alladin breakfast cereal, Waterway Company places 1 coupon in each box. 6 coupons are redeemable for a premium consisting of a children's hand puppet. In 2021, the company purchases 41,800 puppets at $1.65 each and sells 546,000 boxes of Alladin at $3.90 a box.
From its experience with other similar premium offers, the company estimates that 40% of the coupons issued will be mailed back for redemption. During 2021, 124,200 coupons are presented for redemption.
The premium inventory is valued at $68,970.00. It was obtained by multiplying the price of each hand puppet, which is $1.65, by the total number of puppets purchased, which is 41,800.
The company's sales revenue is $2,129,400.00. It is calculated by multiplying the number of boxes sold, which is 546,000, by the price per box, which is $3.90.
The premium expense is $34,155.00. It was calculated by multiplying the number of redeemed coupons by the cost per puppet, which is $1.65.
The expense associated with the sale of the premiums is $39,360.00. The total cost of the redeemed premiums, which is $124,200 divided by 6, is 20,700.
The cost of the remaining unsold premiums in the inventory is $68,970 - $20,700 = $48,270. Therefore, the expense incurred during 2021 is $48,270 - $8,115 (the amount that was expensed in the previous year) = $39,155. The $205 difference is due to rounding errors.
It represents the estimated cost of all premiums that will be redeemed but have not yet been presented for redemption.
The liability is calculated by multiplying the total number of coupons issued, which is 546,000 * 1 = 546,000, by the estimated redemption rate, which is 40%, and then dividing by 6. Thus, the calculation is (546,000 x 40%) / 6 = 39,360.
To learn more about journal, refer below:
https://brainly.com/question/32420859
#SPJ11
Rushing had income of $154 million and average total assets of $1,820 million. its return on assets is:____.
Rushing had an income of $154 million and average total assets of $1,820 million. its return on assets is 8.46%.
To calculate the return on assets (ROA) for Rushing, we need to divide its income by its average total assets. Given that Rushing had an income of $154 million and average total assets of $1,820 million, we can calculate the ROA as follows:
ROA = (Income / Average Total Assets) * 100
ROA = (154 million / 1,820 million) * 100
ROA = 8.46%
Therefore, Rushing's return on assets is approximately 8.46%. This indicates that for every dollar of average total assets, the company generated approximately 8.46 cents of income. ROA is a measure of profitability and efficiency, providing insight into how effectively a company utilizes its assets to generate earnings.
Learn more about return on assets at
brainly.com/question/31080458
#SPJ4
Problem-Solving Case: City of Everett Bets Big on Green Buses
When it comes to goals, the city of Everett, Washington, 25 miles north of Seattle, has set an ambitious one. Its municipal transportation department started as a privately operated horse-drawn trolley more than 125 years ago. Today Everett Transit is a major provider of public transportation services, with more than 40 fixed-route buses serving thousands of the city’s commuters every day.
In just the last few years, the city has added nine electric buses to its fleet, the first seven of which have logged more than 121,00 miles, and its long-term goal is to replace at least half its 40 buses with electric buses by the end of 2022. According to the department’s website, "This will reduce emissions, allowing us to be good stewards of our environment and help achieve our mission of supporting a livable community. We are charging toward a greener Everett!" Carbon emissions are expected to go down by about 900,000 pounds a year. Other expected benefits of the electric fleet include reduced engine noise in the city’s streets and major savings on fuel and maintenance.
The city was able to budget for the purchase of electric buses, which are more expensive than the diesel models they are replacing, by using a federal grant and a grant from Washington State’s Department of Ecology (the latter was part of a multimillion-dollar settlement with Volkswagen for its illegal use of software designed to cheat on vehicle emissions tests). These grants helped bridge any potential budget gap. Everett is also benefiting from the fact that the new buses are still under warranty, so repair costs have been minimal. But there have been some surprises.
First, the electric buses can travel only about 100 miles (an eight-hour shift for a driver) before they need to be recharged, despite the manufacturer’s expectation that they would go 200 miles between charges. Second, maintaining the buses has required extra money and time. For instance, to ensure technicians’ safety when working around high-voltage engines, special equipment had to be purchased and a system developed to ensure safety when working on the vehicles’ roofs. Bus drivers were also given two hours of training to learn how to operate the new buses, which are "substantially different than anything we have previously had in our fleet," according to the city’s Transportation Services Director, Tom Hingson. "Supervisors have learned how to support operators when they are on the road and face any issues. Technicians are still working with the manufacturer as they learn to service the vehicles."
page 158
Routes were selected with care, too. The federal grant that helped pay for the electric buses requires that the first few be used in high-impact areas, and the state grant specifies that they serve environmentally sensitive areas such as the city’s waterfront. As Everett acquires more electric buses, however, they will be spread throughout the city’s routes. Meanwhile, the city looks forward to reducing air pollution from diesel exhaust and improving the health of its citizens.
Why do you think Everett set such an ambitious goal for transforming its fleet? Based on its achievements so far, do you think it is likely to meet that goal? Why or why not?
What additional training needs among its drivers and maintenance workers do you think the city will need to plan for as it adds electric buses in the next few years? What role will its supervisors play?
What factors do you think the city’s budget planners will need to take into account as the number of electric buses increases?
What contingencies would you advise Everett’s transportation department to prepare for?
The city of Everett set such an ambitious goal for transforming its fleet primarily to reduce emissions, improve air quality, and become a more environmentally sustainable city. By transitioning to electric buses, Everett aims to lower carbon emissions and minimize the environmental impact of its transportation system.
As for whether Everett is likely to meet its goal, the information provided suggests that the city has made significant progress by adding nine electric buses to its fleet. These factors may impact the pace of the transition and the ability to replace half of the fleet by the end of 2022.
It would require careful planning, continuous improvements in technology and infrastructure, and effective coordination among various stakeholders to meet the ambitious goal on time. As Everett adds more electric buses to its fleet, additional training needs among its drivers and maintenance workers should be anticipated.
a) Familiarization with electric bus technology: Drivers and maintenance workers will need training to understand the unique features, operating procedures, and safety protocols specific to electric buses.
b) Charging and battery management: Training should include instructions on how to efficiently charge the buses, manage battery life, and handle any charging-related issues that may arise.
c) Diagnostic and troubleshooting skills: Maintenance workers should receive training on diagnosing and resolving electric bus-specific technical problems, as these vehicles have different systems and components compared to traditional diesel buses.
Supervisors will play a crucial role in supporting drivers and maintenance workers during this transition. They should ensure that the training programs are comprehensive, regularly assess the skill levels of their teams, and provide ongoing guidance and feedback.
To learn about emissions visit:
https://brainly.com/question/33156294
#SPJ4
Entity A sells a machine to Entity B on 1 May 2022 for a total price of $6,540,000, which incorporates both the sale of the machine and supporting service. Due to the specialized nature of the machine, at the inception of the contract, Entity A has agreed to provide a supporting service for the next three years. The annual cost to Entity A of providing this service will be $60,000. Entity A usually earns a gross profit margin of 20% on such contracts. REQUIRED: Evaluate the revenue in Entity A’s Statement of Profit or Loss for the year ended 30 September 2022.
The revenue in Entity A's Statement of Profit or Loss for the year ended 30 September 2022 is $1,275,441.86.
To evaluate the revenue in Entity A's Statement of Profit or Loss for the year ended 30 September 2022, we need to consider the terms of the contract and the revenue recognition principles.
The total price of $6,540,000 includes both the sale of the machine and the supporting service. Since the service will be provided over the next three years, we need to allocate the revenue to each period based on the relative fair value of the goods and services provided.
Step 1: Determine the fair value of the machine at the inception of the contract. Since the total price includes both the machine and the service, we need to calculate the fair value of the machine by subtracting the present value of the service costs from the total price.
Present value of the service costs:
PV = $60,000 * 3 years * (1 + discount rate)^(-1) + $60,000 * 3 years * (1 + discount rate)^(-2) + $60,000 * 3 years * (1 + discount rate)^(-3)
Assuming a discount rate of 10%, we can calculate the present value of the service costs and subtract it from the total price:
PV = $60,000 * (1 / (1 + 0.10)) + $60,000 * (1 / (1 + 0.10))^2 + $60,000 * (1 / (1 + 0.10))^3
PV = $162,790.70
Fair value of the machine = Total price - Present value of service costs
Fair value of the machine = $6,540,000 - $162,790.70 = $6,377,209.30
Step 2: Recognize revenue for the year ended 30 September 2022.
Since the revenue is recognized over the next three years, we need to allocate the revenue for each period based on the fair value of the machine.
Revenue for the year ended 30 September 2022 = Fair value of the machine * Gross profit margin
Revenue for the year ended 30 September 2022 = $6,377,209.30 * 20% = $1,275,441.86.Therefore, the revenue in Entity A's Statement of Profit or Loss for the year ended 30 September 2022 is $1,275,441.86.
Learn more about Cost here,https://brainly.com/question/28147009
#SPJ11
"Sales D
actual sales data
When actual sales are greater than forecasted sales, the:
a. inventory will decline.b. production schedules might have to be revised upward.c. accounts receivable will rise.How does actual sales being greater than forecasted sales impact business operations?When actual sales exceed forecasted sales, it has implications for multiple areas of a business. Iff sales are higher than anticipated, it is likely that the demand for products or services is greater than expected.
This can lead to a decline in inventory levels as more goods are being sold than initially projected, requiring businesses to adjust their stock levels accordingly.
Full:
When actual sales are greater than forecasted sales
a. inventory will decline.
b. production schedules might have to be revised upward.
c. accounts receivable will rise.
d. all of these.
Read more about Sales
brainly.com/question/25743891
#SPJ1
Oak hill subdivision only allows homes over 2,000 sq ft to be built. what is this an example of?
Deed Restrictions is an example of Oak hill subdivision only allows homes over 2,000 sq ft to be built.
Deed Restrictions DefinedQuentin has just purchased a home in a brand new subdivision. Shortly after the purchase, he decides to paint the drab beige house a more vibrant color but is stopped in mid brush stroke by his neighbor who tells Quentin he can't do it. Quentin asks why, and his neighbor tells him to look at his deed. Quentin does and finds a series of restrictions on his deed.
A deed restriction is a provision in a deed that imposes a limitation, condition or other restriction upon how the grantee may use the property being conveyed by the deed. Deed restrictions can be specific to one parcel of property or can be common to all lots in a subdivision, such as in Quentin's case.
Learn more about Deed Restrictions at:
https://brainly.com/question/30229513
#SPJ4
A 30-year mortgage has an APR of 6% (compounded monthly). A new homeowner intends to borrow $400000 at this mortgage rate. Use your financial calculator to calculate the following: a) The monthly mortgage payment.
At the end of Year 10, using the AMORT function: b) "What is the mortgage's Ending Balance?"
c) "What is the mortgage's Principal component of the mortgage's payment?" 720.88
d) "What is the mortgage's Interest component of the mortgage's payment?" 1,677.32
e) What is the cumulative Interest paid during the first 10 years?
Please show me the problem solving process, thanks
a) Monthly mortgage payment is $2,398.20. b) Mortgage's ending balance is $291,381.07. c) Principal component of the mortgage's payment is $720.88. d) Interest component is $1,677.32. e) Cumulative interest paid is $155,684.94.
a) The monthly mortgage payment.
Using the financial calculator, the monthly mortgage payment is $2,398.20.
This is the PMT value for the following inputs:
n = 360 (30 years * 12 months per year),
i = 0.5% (6% APR / 12 months per year),
and PV = -$400,000 (negative because it represents a loan payment).
b) "At the end of year 10, the mortgage's ending balance is $291,381.07. This can be found using the AMORT function on the calculator. Inputs include:
P = $400,000 (original loan amount),
n = 120 (10 years * 12 months per year),
i = 0.5% (6% APR / 12 months per year), and
PMT = -$2,398.20 (negative because it represents a loan payment).
c) The principal component of the mortgage's payment is $720.88.
This is the difference between the total monthly payment of $2,398.20 and the interest component of $1,677.32.
d) The interest component of the mortgage's payment is $1,677.32.
This can be found by multiplying the monthly interest rate (0.5%) by the current balance of the loan (which changes each month as principal is paid off).
e) The cumulative interest paid during the first 10 years is $155,684.94.
This can be found by subtracting the original loan amount of $400,000 from the total amount paid in the first 10 years
(which is equal to the sum of the monthly payments made during that time).
This comes out to
$555,684.94 - $400,000 = $155,684.94.
Know more about the mortgage payment
https://brainly.com/question/30093812
#SPJ11
This problem involves calculations and the use of a financial calculator. The monthly mortgage payment is approximately $2398.20. The mortgage's ending balance at the end of Year 10 and the principal and interest components of the mortgage payment can be obtained using the AMORT function.
The cumulative interest paid during the first 10 years can be found by adding up the interest components for each year.
To calculate the monthly mortgage payment for a 30-year mortgage with an APR of 6% compounded monthly and a borrowed amount of $400,000, we can use the formula:
M = P * (r(1+r)^n) / ((1+r)^n - 1),
where M is the monthly payment, P is the principal amount borrowed, r is the monthly interest rate, and n is the total number of payments.
Substituting the given values into the formula, we get:
M = 400000 * (0.06/12 * (1+0.06/12)^(30*12)) / ((1+0.06/12)^(30*12) - 1) = $2398.20 (approximately).
To calculate the mortgage's ending balance at the end of Year 10, we can use the AMORT function. Plugging in the values into the function will give us the answer.
The principal component of the mortgage's payment can be calculated by subtracting the interest component from the monthly payment. In this case, it would be $2398.20 - $1677.32 = $720.88.
The interest component of the mortgage's payment can be calculated by multiplying the monthly interest rate by the remaining balance. In this case, it would be (0.06/12) * (remaining balance at the end of Year 9).
The cumulative interest paid during the first 10 years can be calculated by adding up the interest components for each year.
This problem involves calculations and the use of a financial calculator. The monthly mortgage payment is approximately $2398.20. The mortgage's ending balance at the end of Year 10 and the principal and interest components of the mortgage payment can be obtained using the AMORT function. The cumulative interest paid during the first 10 years can be found by adding up the interest components for each year.
to learn more about AMORT function.
https://brainly.com/question/32732448
#SPJ11
What are the two (2) major similarities between Tesla and Apple? [Your answers must be directly related to marketing.] Similarity 1: Similarity 2: Q6) What are the two (2) biggest challenges that Tesla will face in the next 10 years? How should Tesla address those challenges? [Your answers must be directly related to marketing.] Challenge 1: Challenge 2 :
Tesla and Apple have two major similarities in terms of marketing that is brand image and product differentiation. The biggest challenges that Tesla will face in the next 10 years, Competition and Market Expansion. By addressing these challenges, Tesla can maintain its competitive edge and continue to grow its market share in the coming years.
Similarity 1: Brand Image
Both Tesla and Apple have successfully created strong brand images that resonate with their target audience. They have positioned themselves as innovative, cutting-edge, and forward-thinking companies. This has helped them attract loyal customers and create a sense of desirability around their products.
Similarity 2: Product Differentiation
Both Tesla and Apple excel in product differentiation. They have managed to create unique and distinct offerings that stand out in the market. Tesla's electric vehicles are known for their advanced technology and environmental sustainability, while Apple's products are renowned for their sleek design and user-friendly interface. By focusing on differentiation, both companies have been able to carve out a niche and capture market share.
Tesla will face two major challenges in terms of marketing.
Challenge 1: Competition
As the electric vehicle market grows, Tesla will face increased competition from established automakers and new entrants. To address this challenge, Tesla should continue to invest in research and development to stay ahead in terms of technology and innovation. They should also focus on enhancing their brand reputation and customer loyalty through exceptional customer service and building a strong community of Tesla enthusiasts.
Challenge 2: Market Expansion
As Tesla looks to expand its market reach globally, it will face challenges related to infrastructure and regulations. Tesla should address this by collaborating with utility companies to expand the charging network infrastructure. Additionally, they should invest in localizing their marketing efforts to cater to the specific needs and preferences of different markets.
To know more about electric vehicles visit:
https://brainly.com/question/30714733
#SPJ11
can complement both rational and bounded rational decision making. A. Heuristic B. Evidence based management C. Intuitive decision making D. Anchoring effect A. Click Submit to complete thes assessment. 4 Moving to the next question prevents changes to this answer. Question 3 All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an ecample of a policy a procedure a rule a practice
Intuitive decision making complements both rational and bounded rational decision making processes. So, the correct option is C. Intuitive decision making.
Intuitive decision making is a cognitive process that relies on instinct, experience, and tacit knowledge. It complements rational decision making by allowing individuals to rely on their intuition and gut feelings when faced with complex or ambiguous situations. Intuitive decision making can help fill gaps in information or when time constraints limit the ability to engage in a comprehensive rational analysis.
Rational decision making, on the other hand, is a systematic approach that involves gathering relevant information, evaluating alternatives, and selecting the best course of action based on logical reasoning and objective criteria. It aims to optimize outcomes by considering all available data and making decisions that align with predetermined goals and objectives.
Intuitive decision making can be seen as a response to these limitations, allowing individuals to make quick judgments based on their accumulated knowledge and past experiences.
In summary, intuitive decision making can complement both rational and bounded rational decision making approaches by providing an additional dimension of insight and leveraging the expertise and tacit knowledge of individuals.
To know more about Outcomes visit-
brainly.com/question/13992309
#SPJ11
What is the arithmetic average % return from the following series of year end portfolio values?
2018
2019
2020
$650,000
$637,000
$671,500
2.06% 3.7195 1.717 1.043 1.65%
The arithmetic average % return from the given series of year-end portfolio values is approximately 1.14%.The answer has been rounded to 2 decimal places as per the given requirement.
To calculate the arithmetic average % return from the given series of year-end portfolio values, follow these steps:
1. Calculate the % return for each year by using the formula:
% Return = ((Ending Value - Beginning Value) / Beginning Value) * 100
2. Apply the formula for each year using the given values:
For 2018: % Return = (($637,000 - $650,000) / $650,000) * 100 = -1.99999999999994%
For 2019: % Return = (($671,500 - $637,000) / $637,000) * 100 = 5.41740620146477%
For 2020: % Return = ((1.65% / 100) * $671,500) = 0.01 * $671,500 = $6,715
3. Add up all the % returns calculated in step 2:
-1.99999999999994% + 5.41740620146477% + 0.01 = 3.42740620146483%
4. Divide the sum by the number of years to find the average % return:
Average % Return = 3.42740620146483% / 3 = 1.14246873382161%
Learn more about arithmetic
https://brainly.com/question/16415816
#SPJ11
A company produces and sells a product. The unit variable cost is $50 and the unit selling price is $79. The fixed cost associated with the product is $208,674 per year units per year in order to generate an The company must produce and sell income (or profit) $ 170,159 per year.
The company needs to produce and sell approximately 13,060 units in order to generate the desired income of $170,159 per year.
To find the number of units the company needs to produce and sell in order to generate the desired income of $170,159 per year, we can use the formula:
Desired income = (Selling price - Variable cost) * Number of units - Fixed cost
Substituting the given values, we have:
$170,159 = ($79 - $50) * Number of units - $208,674
Simplifying the equation, we get:
$170,159 + $208,674 = $29 * Number of units
$378,833 = $29 * Number of units
Dividing both sides by $29, we find:
Number of units = $378,833 / $29
Number of units ≈ 13,060
Therefore, the company needs to produce and sell approximately 13,060 units in order to generate the desired income of $170,159 per year.
To know more about Number visit:
https://brainly.com/question/3589540
#SPJ11
A monopolist faces a linear demand curve q = 23 – 4p + 2A, where p is the
per unit market price and A is the monopolist’s expenditure on advertising.
The monopolist has constant marginal cost of production given by MC=5, and
has no fixed costs.
(a) Write out the monopolist’s profit function.
(b) Solve for the zero-slope condition with respect to the market price p and
the level of advertising A.
(c) Use the two zero-slope conditions to solve for the monopolist’s profit-
maximizing price and level of advertising expenditure.
(d) Confirm that the advertising-to-sales ratio is equal to the ratio of the
advertising elasticity and the price elasticity of demand.
Profit function of the monopolist:The monopolist faces a linear demand curve given by the equation:q = 23 – 4p + 2Awhere p is the per unit market price and A is the monopolist’s expenditure on advertising.
The monopolist has constant marginal cost of production given by MC=5, and has no fixed costs. The profit function of the monopolist is given by the equation: π = TR – TC. This equation can be re-written as follows:π
= p(q)q – MCq – Awhere TR is the total revenue, TC is the total cost, and q is the level of output. Substituting the demand function into the profit function, we get:π
= (23 – 4p + 2A)(q) – 5q – A
Given,The demand curve of a monopolist is,q = 23 – 4p + 2AMarginal cost of production of monopolist is,MC
=5Fixed costs is 0.Then,Profit function of the monopolist is,π
= TR – TC.Substituting the value of TR and TC in the above expression, we get:π
= p(q)q – MCq – Aπ
= (23 – 4p + 2A)(q) – 5q – A(b)
To know more about monopolist visit:
https://brainly.com/question/32935991
#SPJ11
Suppose the demand for an exhaustible resource is 0f =350−p1, the interest rate is 10%, and the real amount of the resource is 138. 66 pounds and the marginal cost of extraction is zero Assuming all of the sources will be extracted in two periods, what is the price in the first period? (Enfer your fesponse rounded to five decimal places) How much was it extracted in the first period? pounds (Enter your response rounded to two decimal places) What is the price in the second period? 1 (Enter your response rounded to hub decimal places.) How much is extracted in the second period? pounds (Enter your response rounded to two decimal places)
The price in the second period is 6.933 (rounded to one decimal place).
The quantity extracted in the second period is 343.067 pounds.
To determine the price and quantity extracted in each period, we need to apply Hotelling's rule, which states that the price should increase at the rate of interest over time.
First, let's calculate the price in the first period:
Given: f = 350 - p1, r = 0.10, and q1 = 138.66 pounds
Using Hotelling's rule, set up the equation:
p1 = (r * q1) / 2
Substituting the given values:
p1 = (0.10 * 138.66) / 2
p1 = 13.866
The price in the first period is 13.866 (rounded to five decimal places).
Next, let's calculate the quantity extracted in the first period:
q1 = f - p1
q1 = 350 - 13.866
q1 = 336.134 pounds (rounded to two decimal places)
The quantity extracted in the first period is 336.134 pounds.
Moving on to the second period, let's calculate the price:
Given: r = 0.10 and q2 = 138.66 pounds
Using Hotelling's rule, we can set up the equation:
p2 = (r * q2) / 2
Substituting the given values:
p2 = (0.10 * 138.66) / 2
p2 = 6.933
Lastly, let's calculate the quantity extracted in the second period:
q2 = f - p2
q2 = 350 - 6.933
q2 = 343.067 pounds (rounded to two decimal places)
Learn more about quantity extracted here:
https://brainly.com/question/27960858
#SPJ11
What+is+the+value+today+of+a+money+machine+that+will+pay+$1,628.00+per+year+for+19.00+years?+assume+the+first+payment+is+made+10.00+years+from+today+and+the+interest+rate+is+12.00%.
The value today of a money machine that will pay $1,628 per year for 19 years, starting 10 years from today, at an interest rate of 12%, is approximately $3,917.45.
How to solve for the present valuePmt = $1,628,
r = 12% or 0.12,
n = 19.
Hence,
PV = $1,628 * [(1 - (1 + 0.12)⁻¹⁹) / 0.12] = $1,628 * 7.46992
= $12,173.19.
PV = $12,173.19 / (1 + 0.12)¹⁰
= $12,173.19 / 3.10585
≈ $3,917.45.
So, the value today of a money machine that will pay $1,628 per year for 19 years, starting 10 years from today, at an interest rate of 12%, is approximately $3,917.45.
Read more on present value here https://brainly.com/question/20813161
#SPJ4
Sunland Company had $255,800 of net income in 2019 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $572,200. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Sunland Company is under pressure from stockholders to increase net income by $82,800 in 2020. Your answer is correct. Compute the number of units sold in 2019. 13,800 units SHOW SOLUTIONSHOW ANSWER LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Your answer is correct. Compute the number of units that would have to be sold in 2020 to reach the stockholders' desired profit level. 15,180 units Your answer is incorrect. Try again Assume that Sunland Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders' desired profit level? New selling price 165 Click if you would like to Show Work for this question: Open Show Work
To compute the number of units sold in 2019, we can use the contribution margin per unit.
The contribution margin per unit is calculated by subtracting the variable costs per unit from the selling price per unit.
Contribution margin per unit = Selling price per unit - Variable costs per unit
Contribution margin per unit = $150 - $90
Contribution margin per unit = $60
The contribution margin represents the amount that contributes to covering the fixed costs and generating profit. We can use this information to calculate the number of units sold in 2019:
Net income = (Selling price per unit - Variable costs per unit) * Number of units sold - Fixed costs
We know that the net income in 2019 was $255,800 and the fixed costs were $572,200. Let's calculate the number of units sold:
$255,800 = ($60 * Number of units sold) - $572,200
Rearranging the equation:
$60 * Number of units sold = $255,800 + $572,200
$60 * Number of units sold = $828,000
Number of units sold = $828,000 / $60
Number of units sold = 13,800 units
Therefore, the number of units sold in 2019 was 13,800 units.
Now, let's move on to the next question:
To compute the number of units that would have to be sold in 2020 to reach the stockholders' desired profit level, we need to determine the target net income. The desired profit increase is $82,800, so the target net income for 2020 would be:
Target net income = Net income in 2019 + Desired profit increase
Target net income = $255,800 + $82,800
Target net income = $338,600
Using the same contribution margin per unit ($60), we can calculate the number of units that need to be sold in 2020:
$338,600 = ($60 * Number of units sold in 2020) - $572,200
Rearranging the equation:
$60 * Number of units sold in 2020 = $338,600 + $572,200
$60 * Number of units sold in 2020 = $910,800
Number of units sold in 2020 = $910,800 / $60
Number of units sold in 2020 = 15,180 units
Therefore, the number of units that would have to be sold in 2020 to reach the stockholders' desired profit level is 15,180 units.
Moving on to the last question:
Assuming Sunland Company sells the same number of units in 2020 as it did in 2019 (13,800 units), we can calculate the new selling price that would be required to reach the stockholders' desired profit level.
Net income = (Selling price per unit - Variable costs per unit) * Number of units sold - Fixed costs
We know that the desired net income for 2020 is $338,600, the fixed costs are $572,200, and the number of units sold is 13,800. Let's calculate the new selling price:
$338,600 = (Selling price per unit - $90) * 13,800 - $572,200
Rearranging the equation:
(Selling price per unit - $90) * 13,800 = $338,600 + $572,200
(Selling price per unit - $90) * 13,800 = $910,800
Dividing both sides by 13,800:
Selling price per unit - $90 = $910,800 / 13
know more about contribution margin
https://brainly.com/question/31484547#
#SPJ11
The journal entry for adjustment of underallocated manufacturing overhead includes a ________.
The diary passage for the change of underallocated producing above ordinarily includes a debit to Cost of Products Sold (Machine gear-pieces) and a sound representative for Assembling Above.
While assembling above is underallocated, it implies that the genuine above costs caused during a particular period were higher than the dispensed sum. This can happen when the foreordained above rate used to apportion above expenses for items is set excessively low.
To address this underallocation, the abundance measure of underallocated producing above is moved from the Assembling Above record to the Pinions account. By charging Gear-teeth, the expense is perceived as a cost in the period in which it happened.
Learn more about debit, from:
brainly.com/question/29830330
#SPJ4
Case 3: Home Depot Bernard Marcus and Arthur Blank founded Home Depot after losing their jobs in the home improvement industry in 1978. Home Depot focused on the needs of the DIY market, specializing in building materials and lawn and garden equipment. Three stores were launched in the Atlanta area in 1979, and four stores in South Florida were added in 1981. The firm posted sales of $50 million that year and went public. By 1983, Home Depot had opened stores in Louisiana and Arizona with total sales exceeding $250 million. Home Depot expanded into California in 1985 and by the following year had amassed a total of 60 stores and sales of $1 billion. Home Depot continued to grow and entered the northeastern United States and Canada in subsequent years, reaching 500 stores by 1997. Home Depot added a direct-mail interest by acquiring mail-order firm National Blind & Wallpaper Factory and direct-marketer Maintenance Warehouse. Home Depot launched Villager's Hardware stores in New Jersey in 1999, a 40,000-square-foot outlet designed to compete with traditional hardware stores. The firm also began to add large appliances to many of its stores. In 2000, Marcus and Blank became cochairmen, and former General Electric (GE) executive Robert Nardelli was named president and CEO. Aggressive expansion continued in 2001 when Home Depot added another 200 stores and acuird Total Home a small home improvement chain in
The Home Depot was founded in 1978 by Bernard Marcus and Arthur Blank. It focused on the DIY market and specialized in building materials and lawn and garden equipment. In 1979, three stores were opened in the Atlanta area, and by 1981, four more stores were added in South Florida.
The company posted sales of $50 million that year and went public. By 1983, Home Depot had opened stores in Louisiana and Arizona with total sales exceeding $250 million. In 1985, the company expanded into California and had a total of 60 stores and sales of $1 billion. Home Depot continued to grow and reached 500 stores by 1997. In 1999, the company launched Villager's Hardware stores in New Jersey, designed to compete with traditional hardware stores. It also added large appliances to many of its stores. In 2000, Marcus and Blank became cochairmen, and Robert Nardelli was named president and CEO. Aggressive expansion continued in 2001 when Home Depot added another 200 stores and acquired Total Home, a small home improvement chain.
To know more about Hardware visit:
https://brainly.com/question/32810334
#SPJ11
Bridgeport Company buys merchandise on account from Sarasota Company for $655. Bridgeport sells the goods to Ellis for $1,350 cash. Use a tabular summary to record the transactions for Bridgeport Company using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g.
Using a perpetual inventory system, we can record the transactions for Bridgeport Company involving the purchase of merchandise from Sarasota Company and the subsequent sale of goods to Ellis. The tabular summary will help us track the changes in inventory, accounts payable, sales, and cash.
We will create a tabular summary to record the transactions for Bridgeport Company:
| Date | Account | Debit ($) | Credit ($) |
|----------- |--------------------- |-----------|------------|
| Date 1 | Inventory | 655 | |
| | Accounts Payable | | 655 |
| Date 2 | Accounts Receivable | | 1,350 |
| | Sales | | 1,350 |
| | Cash | 1,350 | |
| Date 3 | Cost of Goods Sold | 655 | |
| | Inventory | | 655 |
1. On Date 1, Bridgeport Company purchases merchandise from Sarasota Company on account for $655. We debit the Inventory account to increase the value of inventory, and credit the Accounts Payable account to record the liability.
2. On Date 2, Bridgeport Company sells the goods to Ellis for $1,350 in cash. We do not need to record an entry for Inventory in this transaction as it has already been recorded in the purchase. We debit the Accounts Receivable account to record the increase in accounts receivable from Ellis, and credit the Sales account to recognize the revenue. Finally, we debit the Cash account for the cash received.
3. On Date 3, we need to record the cost of goods sold. We debit the Cost of Goods Sold account to recognize the expense, and credit the Inventory account to reduce the value of inventory.
know more about inventory system :brainly.com/question/30245776
#SPJ11
Country is currently producing only stereos. What is the opportunity cost of producing two Tv's? 2) Which product is more efficient for the country to produce? why?
The opportunity cost of producing two TVs in a country that's presently producing only stereos would be the forgone product of a certain number of stereos.
To produce two TVs, the country would need to reallocate resources, similar as labor, capital, and raw materials, down from stereo product. Accordingly, the country would produce fewer stereos than it could have else. The efficiency of product depends on various factors, including relative advantage and productioncapabilities.However, it would be more effective to continue producing stereos, If the country has an advanced relative advantage or a more effective product process in stereo manufacturing.
If the country has a relative advantage or better product capabilities in television manufacturing, it would be more effective to switch production to TVs.
To learn more about the Opportunity Cost:
https://brainly.com/question/3611557
#SPJ4
Consider the case of a positive consumption externality. Suppose throughout this exercise that demand and supply curves are linear. a. Draw two graphs with the same demand (PMB) curve but one that has a fairly elastic (but not perfectly elastic) ind the other one with a fairly inelastic (but not perfectly inelastic) supply (PMC) curves, In which case would the (private) market equilibrium output be closer to the socially optimal level? b. Draw two additional graphs. This time use the same supply (PMC) curves in each graph, but with a fairly inelastic (but not perfectly inelastic) demand (PMB) curve and one with a fairly elastic (but not perfectly clastic) demand (PMB) curve. In which case would the (private) market equilibrium output be close the socially optimal level?
a. Consider the case of a positive consumption externality. Suppose throughout this exercise that demand and supply curves are linear. Draw two graphs with the same demand (PMB) curve but one that has a fairly elastic (but not perfectly elastic) and the other one with a fairly inelastic (but not perfectly inelastic) supply (PMC) curve. In which case would the (private) market equilibrium output be closer to the socially optimal level?
When demand (PMB) is the same but supply (PMC) is inelastic, and the consumption externality is positive, the market equilibrium output is far below the socially optimal level. The reason is that the market fails to account for the benefits of consumption in the equilibrium price and quantity. On the other hand, when supply is elastic, the market equilibrium output is closer to the socially optimal level.
The positive consumption externality is where the benefit to society exceeds the benefit to the consumers. In such circumstances, a market failure occurs when the market equilibrium output is less than the socially optimal level. A socially optimal level is the point at which social benefits equal social costs.
a) The graphs will look like this for inelastic supply and elastic supply:
Graph with Inelastic Supply:
PMC curves with a relatively inelastic supply curve will result in a market equilibrium output of Q1 at the price of P1. The socially optimal quantity is higher than the market equilibrium quantity. Graph with Elastic Supply:
PMC curves with a relatively elastic supply curve will result in a market equilibrium output of Q2 at the price of P2. In this scenario, the market equilibrium output is closer to the socially optimal level.
b) The graphs will look like this for elastic demand and inelastic demand:
Graph with Elastic Demand:
PMC curves with a relatively elastic demand curve will result in a market equilibrium output of Q2 at the price of P2. The market equilibrium output is near to the socially optimal level. Graph with Inelastic Demand:
PMC curves with a relatively inelastic demand curve will result in a market equilibrium output of Q1 at the price of P1. The market equilibrium output is below the socially optimal level.
Learn more about inelastic supply curve: https://brainly.com/question/30009398
#SPJ11
A market value weighted index has three stocks in it, priced at 62.6,96.9, and 81.9 per share, and each firm has 467,398 and 396 thousand shares outstanding, respectively. The value of the index today is 554.8. Over the course of a month, the market does its random walk- y thing, and the prices of the three stocks change do 87.9,86.5,56.3, respectively. What is the new value of the index? Enter answer accurate to two decimal places.
To calculate the new value of the market value weighted index, we need to consider the changes in the prices of the three stocks and the number of shares outstanding for each stock.
Stock 1: Price = 62.6 per share, Shares Outstanding = 467,398
Stock 2: Price = 96.9 per share, Shares Outstanding = 396,000
Stock 3: Price = 81.9 per share, Shares Outstanding = 396,000
After a month, the prices of the three stocks change to:
Stock 1: Price = 87.9 per share
Stock 2: Price = 86.5 per share
Stock 3: Price = 56.3 per share
To calculate the new value of the index, we multiply the price of each stock by its corresponding number of shares outstanding and then sum them up. Finally, we divide the sum by the original value of the index and multiply by 100.
New value of the index = (Price1 * Shares1 + Price2 * Shares2 + Price3 * Shares3) / Original value of the index * 100
Substituting the values:
New value of the index = (87.9 * 467,398 + 86.5 * 396,000 + 56.3 * 396,000) / 554.8 * 100
Calculating the new value of the index using the above formula, the result is approximately 139.32 (accurate to two decimal places).
To Know more about corresponding number
https://brainly.com/question/13599745
#SPJ11
Can you think of an example of an informational ad? What information is provided, and how does it persuade consumers? Can you think of an example of a branding ad? What personality and attitude are attached to the product? How might those characteristics persuade consumers?
An example of an informational ad could be a commercial for a new smartphone. The information provided would include the phone's features, specifications, and price. This ad persuades consumers by highlighting the phone's capabilities and demonstrating how it can meet their needs.
A branding ad example could be a commercial for a luxury car brand. The personality and attitude attached to the product may convey sophistication, elegance, and exclusivity. These characteristics persuade consumers by creating a desire to associate themselves with the brand's image and lifestyle.
Overall, informational ads provide detailed information to persuade consumers based on product features, while branding ads create an emotional connection by associating specific characteristics with the product.
To know more about informational ad visit:
brainly.com/question/29813009
#SPJ11
An Australian exporting company will receive 6.8m USD in 3 years’ time from sales. The current spot rate is AUD / USD 0.6594 / 0.6598. Australian interest rates are currently at 2.35% p.a. and U.S. interest rates are at 3.25% p.a. The net interest rate spread in both countries is 2.8% (read this as the borrowing rates are 2.8% higher than the given investment rates above). Design a money market hedge which will remove the FX risk faced by the company, yet not altering the timing of the receipt. Clearly show the AUD cash flow in the future.
The F X risk, the company can enter into a forward contract to sell 4.970934 million AUD in 3 years' time at the current spot rate of 0.6598 AUD/USD.
First, let's calculate the future value of 6.8 million USD after 3 years, considering the interest rates in both countries. [tex]Future Value = Present Value * (1 + interest rate)^number of years[/tex]
Using this formula, the future value of 6.8 million USD after 3 years is:
[tex]Future Value = 6.8 million USD * (1 + 3.25%)^3[/tex]
= 7.53 million USD.
Now, let's convert the future value from USD to AUD using the current spot rate:
AUD Future Value = 7.53 million USD * 0.6598 AUD/USD
= 4.970934 million AUD
This way, the company locks in the exchange rate and eliminates the risk of exchange rate fluctuations.
The company will receive 4.970934 million AUD in the future as a result of this money market hedge.
To know more about forward visit:
https://brainly.com/question/29241899
#SPJ11
Jeremy (unmarried) earned $101,800 in salary and $7,800 in interest income during the year. Jeremy's employer withheld $10,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $24,800 in itemized deductions, including $2,000 of charitable contributions to his church. (Use the tax rate schedulesi) Required: a. Determine Jeremy's tax refund or taxes due. b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $12,550. What is Jeremy's tax refund or tax due including the tax on the capital gain? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Determine Jeremy's tax refund or taxes due. Determine Jeremy's tax refund or taxes due.
a) Jeremy's federal income tax liability is $5,898 based on his taxable income of $80,600 after deductions and exemptions.
b) The tax on Jeremy's long-term capital gain of $12,550 is $1,883.25, resulting in a total tax liability of $7,781.25 including the capital gain.
a) The total income earned by Jeremy is $101,800 + $7,800 = $109,600
Total itemized deductions = $24,800, which is greater than the standard deduction for the head of household. Therefore, Jeremy will use itemized deductions to lower his taxable income.
Taxable income = Total income - itemized deductions- personal exemption = $109,600 - $24,800 - $4,200 (personal exemption for Jeremy and his child) = $80,600
From the tax tables, the federal income tax liability on $80,600 is $15,898. Subtracting the withheld taxes from the liability, we have the amount due, $15,898 - $10,000 = $5,898; therefore, Jeremy owes $5,898 in federal income taxes.
b) Long-term capital gain = $12,550Since it is long-term, the tax rate will be either 0%, 15%, or 20%. Because Jeremy's taxable income is $80,600 before including the capital gain, his capital gains tax rate is 15%.
The tax on the capital gain = $12,550 x 0.15 = $1,883.25Therefore, the total tax liability, including the capital gain is = $5,898 + $1,883.25 = $7,781.25 (rounded to the nearest dollar)
To know more about taxable income click on below link:
https://brainly.com/question/33053500#
#SPJ11
You have $400 and are comparing two savings accounts. One pays 5% simple interest and the other pays 5% compound interest. How much more money will you have after 9 years if you invest in the compound interest account as compared to the simple interest account?
You will have approximately $40.53 more money if you invest in the compound interest account compared to the simple interest account after 9 years.
To calculate the difference in the amount of money you will have after 9 years between the compound interest account and the simple interest account, we need to determine the interest earned by each account.
For the simple interest account, the formula to calculate the interest earned is:
Simple Interest = Principal (P) × Interest Rate (r) × Time (t)
In this case, the principal (P) is $400, the interest rate (r) is 5% (0.05 in decimal form), and the time (t) is 9 years. Plugging in these values:
Simple Interest = $400 × 0.05 × 9
= $180
Therefore, after 9 years, the simple interest account will earn $180 in interest.
For the compound interest account, the formula to calculate the future value is:
Future Value = Principal (P) × (1 + Interest Rate (r))^(Time (t))
In this case, the principal (P) is $400, the interest rate (r) is 5% (0.05 in decimal form), and the time (t) is 9 years. Plugging in these values:
Future Value = $400 × (1 + 0.05)^9
= $400 × (1.05)^9
= $400 × 1.551328
= $620.53 (rounded to two decimal places)
Therefore, after 9 years, the compound interest account will have a future value of approximately $620.53.
The difference in the amount of money between the compound interest account and the simple interest account after 9 years is:
Difference = Future Value (Compound Interest) - (Principal + Simple Interest)
= $620.53 - ($400 + $180)
= $620.53 - $580
= $40.53
Therefore, you will have approximately $40.53 more money if you invest in the compound interest account compared to the simple interest account after 9 years.
Learn more about simple interest here:
brainly.com/question/30964667
#SPJ11
________ are payments, gifts, or special favors intended to influence the outcome of a decision.
Bribes are payments, gifts, or special favors intended to influence the outcome of a decision.
In order to influence the behavior of public officials, it is unlawful to trade something of value, such as money, in the form of a bribe. A bribe is when one party provides something of value or money unlawfully in order to influence a decision or procedure. Bribes are frequently offered to avoid prosecution or to get around laws or regulations.
Bribes can take on a variety of shapes, from small-scale transactions between individuals to significant agreements between businesses or governments. Additionally, bribes might pass for tips, presents, favors, donations, or other kinds of acceptable transactions. There is no one definition or categorization system for bribery because some countries accept and legalize certain business practices that are prohibited in other countries.
Learn more about Bribes here:
https://brainly.com/question/32972931
#SPJ4
You plan to deposit $2,000 today, $4,000 in one year and $2,000
in two years into an account earning 4.6% interest. What will the
account balance be in 4 years? Round to the nearest dollar.
The account balance in 4 years can be calculated by compounding the interest earned on each deposit.
Here's how you can calculate it step-by-step:
1. First, calculate the interest earned on the first deposit of $2,000 today. The interest rate is 4.6%, so the interest earned will be:
$2,000 * 0.046 = $92
2. Add the interest earned to the initial deposit to get the new balance after one year:
$2,000 + $92 = $2,092
3. Now, calculate the interest earned on the second deposit of $4,000 after one year. The interest earned will be:
$4,000 * 0.046 = $184
4. Add the interest earned to the balance after one year to get the new balance after two years:
$2,092 + $184 = $2,276
5. Finally, calculate the interest earned on the third deposit of $2,000 after two years. The interest earned will be:
$2,000 * 0.046 = $92
6. Add the interest earned to the balance after two years to get the final account balance after four years:
$2,276 + $92 = $2,368
Therefore, the account balance in 4 years, rounded to the nearest dollar, will be $2,368.
In summary, the account balance after 4 years will be $2,368. This is calculated by adding the interest earned on each deposit to the previous balance. It is important to note that this calculation assumes the interest is compounded annually, meaning it is added to the account balance each year.
To learn more about balance:
https://brainly.com/question/27154367
#SPJ11
consider a 4-year amortizing loan. you borrow $3,000 initially and repay it in four equal annual year-end payments. if the interest rate is 10%, what is the annual payment?
The annual payment for the 4-year amortizing loan would be approximately $946.07.
To calculate the annual payment for a 4-year amortizing loan, we can use the formula for the periodic payment of an amortizing loan:
[tex]P = (r * PV) / (1 - (1 + r)^(-n))[/tex]
Where:
P = periodic payment
PV = present value or initial loan amount
r = interest rate per period
n = total number of periods
In this case, the initial loan amount (PV) is $3,000, the interest rate (r) is 10% (0.10 as a decimal), and the total number of periods (n) is 4.
Plugging these values into the formula, we get:
P =[tex](0.10 * $3,000) / (1 - (1 + 0.10)^(-4))[/tex]
P = [tex]$300 / (1 - (1.10)^(-4))[/tex]
P = $300 / (1 - 0.683013)
P = $300 / 0.316987
P ≈ $946.07
Learn more about amortized loan here:
https://brainly.com/question/29423025
#SPJ4
It is of the utmost importance for a lawyer to be prepared for a trial. One of your matters,
namely a claim for damages, is set down for trial. You are the defence attorney. Describe the
steps you will take to prepare for trial to place all available evidence before court. Refer to
and explain the types of evidence that you will use in your preparation for the trial and also
why this evidence is important.
A lawyer who is preparing for a trial should be well-prepared and ready to present all available evidence before court.
A lawyer is always supposed to be well-prepared and ready to present all available evidence before court, especially when preparing for a trial. In the case of a defence attorney whose matter is a claim for damages set down for trial, he should first gather all the evidence which includes police reports, medical reports, witness statements, photographs, and other evidence that might be pertinent to his case. He should then organize the gathered evidence in a way that would make it easy for the court to understand. There are three types of evidence that he should make use of in his preparation for the trial, namely; documentary evidence, testimonial evidence, and physical evidence.
Documentary evidence consists of written records or documents, such as contracts, invoices, and receipts. Testimonial evidence comes from witnesses who will testify in court. Physical evidence includes items that can be seen, touched, and examined by the court. The gathered evidence is important because it will help to prove the defence attorney's case. Evidence is what he will use to persuade the court that his client is innocent. Without evidence, it will be difficult to prove the case and win the trial. Therefore, it is important to be well-prepared and have all available evidence organized and ready to present. The above are the steps a defence attorney should take when preparing for a trial.
To know more about trial visit:
brainly.com/question/1807824
#SPJ11
if efficiency were to be the only criterion for the evaluation of administrative performance, would any other important values be diminished? Explain.
If efficiency were the sole criterion for evaluating administrative performance, it is likely that other important values would be diminished or overlooked.
If efficiency were the sole criterion for evaluating administrative performance, it is likely that other important values would be diminished or overlooked. Efficiency focuses on accomplishing tasks and goals in the most optimal and resource-effective manner. While efficiency is important for organizations to operate effectively, it should not be the sole measure of performance.
By solely prioritizing efficiency, other values such as effectiveness, equity, transparency, accountability, and ethical considerations may be diminished or disregarded. For instance:
Effectiveness: Efficiency alone may not guarantee that the organization is achieving its intended outcomes or meeting the needs of stakeholders. Emphasizing efficiency without considering effectiveness could result in the organization optimizing processes that ultimately produce subpar results.
Equity: Efficiency-focused approaches may unintentionally overlook considerations of fairness and equality. Allocating resources solely based on efficiency may lead to disparities or neglect the needs of marginalized or disadvantaged groups.
Transparency: While efficiency may streamline processes, it may also compromise transparency and decision-making visibility. Strict focus on efficiency might result in limited information sharing, lack of communication, and reduced opportunities for public or stakeholder engagement.
Accountability: Overemphasizing efficiency may undermine accountability mechanisms. If efficiency becomes the primary goal, there may be less emphasis on monitoring and evaluating performance, addressing potential ethical concerns, or holding individuals or organizations accountable for their actions.
Ethical considerations: Efficiency-focused approaches could inadvertently encourage shortcuts, compromise quality, or neglect ethical considerations. Ethical dilemmas and complex decision-making may require additional time and resources, which might conflict with efficiency goals.
To learn more about Equity
https://brainly.com/question/11556132
#SPJ11
from the two activities. If the selling price of bracelets increases from $12 to $24, then Jamal's opportunity cost of making earrings and making earrings is now profitable than making bracelets. Suppose that the earrings market consists of several suppliers like Jamal who are skilled at making both earrings and bracelets. Which of the following is likely to happen to the supply curve of earrings when the price of a bracelets increases? It does not change It shifts to the right It shifts to the left
According to the given activity, if the selling price of bracelets increases from 12 to 24, then Jamal's opportunity cost of making earrings and making earrings is now more profitable than making bracelets. Now, let's see which of the given options is likely to happen to the supply curve of earrings when the price of a bracelet increases.
The opportunity cost of making earrings over bracelets decreases when the price of bracelets increases. The reason for this is because it's become more profitable to make bracelets than earrings. Jamal, and other skilled makers, are likely to shift their focus to making bracelets instead of earrings. This means that they will supply fewer earrings to the market. The decrease in supply will shift the supply curve to the left. Hence, the correct option is "It shifts to the left."When the price of bracelets increases, the opportunity cost of making earrings over bracelets decreases.
It becomes more profitable to make bracelets than earrings. Skilled makers like Jamal are likely to focus their efforts on making bracelets. They will then supply fewer earrings to the market. This decrease in supply will shift the supply curve of earrings to the left.
To know more about bracelets visit :
https://brainly.com/question/16898240
#SPJ11
