Answer:
The US has absolute advantage in making cars. An additional worker makes 5 times higher cars than a Mexican worker.
Explanation:
The US has the absolute advantage than Mexico in making both products since its Marginal Product of Labor (MPL) (i.e. the number cars that an additional worker produces) is higher. The US also enjoys absolute advantage because it incurs less cost in making car (or even airplane) than does Mexico in making either car (or even airplane). One can then conclude that the US has the absolute advantage in the making of cars.
Answer:
$252,000
Explanation:
The question is to determine the contribution of Sam's Bookstore for the first quarter
Contribution Margin represents the profit an organisation can generate from the sale of a product. in order to calculate, the variable costs are deducted from the revenue from sale.
The formula for Contribution margin = Sales- the cost of goods sold - variable selling expense.
Selling Price = $65
Reported ales = $910,000
First, we determine the number of books sold in the first quarter
= $910 000/ $65 = 14 000 books
Second, since the store sold 14,000 books in the first quarter, the total variable selling cost for the books sold
= total books sold x the variable selling expense per book
= 14,000 x $4 = $56,000= total variable selling expense
Third, since the store sold 14,000 books in the first quarter, the total variable administrative cost for the books sold
= total books sold x the variable administrative expense per book
= 14,000 x $3 = $42,000= total variable Administrative expense
Four, determine the contribution margin as follows:
Sales - cost of goods sold - variable selling expense - variable administrative expense
= $910,000-$560,000- $56,000-$42,000= $252,000
Answer:
B. a location with weak environmental rules that attracts manufacturing companies due to decreased costs.
Explanation:
A pollution haven is when companies establish factories or offices abroad in countries in which they have lower costs and have access to all the resources they need. Also, these locations tend to be in developing nations in which the environmental standards tend to be lower than the ones in developed nations. According to this, the answer is that a pollution haven is a location with weak environmental rules that attracts manufacturing companies due to decreased costs.
The other options are not right because a pollution haven is attractive for multinational investment because of the lower cost and it is not related to ambient pollution. Also, a pollution haven has low wages but it is not the only thing that defines it and it is not a place where people like pollution.
Employee Health Insurance Payable 450
Employee Income Tax Payable 400
Estimated Warranty Payable 600
Long-Term Notes Payable(Due 2019) 33,000
FICA—OASDI Taxes Payable 560
Sales Tax Payable 370
Mortgage Payable(Due 2020) 6,000
Bonds Payable(Due 2021) 53,000
Current Portion of Long-Term Notes Payable 3,500
What is the total amount of current liabilities?
Answer:
$18,880
Explanation:
Current Liabilities are those liabilities which need to be paid within on year time. These liabilities are also called short term liabilities.
Following Liabilities are considered as the current liabilities because these needs to be paid within one year.
Accounts Payable $13,000
Employee Health Insurance Payable $450
Employee Income Tax Payable $400
Estimated Warranty Payable $600
FICA—OASDI Taxes Payable $560
Sales Tax Payable $370
Current Portion of Long-Term Notes Payable $3,500
Total Current Liabilities $18,880
Following are all the Non current liabilities balances:
Long-Term Notes Payable(Due 2019) 33,000
Mortgage Payable(Due 2020) 6,000
Bonds Payable(Due 2021) 53,000
Answer:
1,040
Explanation:
The Herfindahl index is an index that is used to measure the size of firms in relation to the industry and it also shows the level of competition among the firms in the industry. The Herfindahl index is also known as Herfindahl–Hirschman Index (HHI).
The Herfindahl index is calculated by summing the square of the market share of all firms in the industry. For this question, it can be calculated as follows:
Herfindahl index = (12^2 * 5) + (8^2 * 5) = 720 + 320 = 1,040.
Answer:
The cash payments for September are $646000
Explanation:
The cash payments for merchandise are divided into to parts. The previous month's 70% payments and this month's 30% payments. Thus, the cash payments for the month of september will be 70% for AAugust purchases and 30% for september's purchases.
Thus the cash payments for merchandise will be,
Cash Payments = 0.7 * 610000 + 0.3 * 730000 = $646000
Answer:
=646000
Explanation:
30% pay in the month of purchase .
Note that th purchase made in September is $730,000 and 30% is due that month.
= 30% × 730,000
= 219,000
70% in the following month
For his category, payment be made in September should relate to purchases made in August, and $610,000 was purchased in August
=70%× $610,000
=427,000
Cash payment f r te September
= 219,000 + 427,000
=$646,000
Answer:
Explanation:
Journal entry
a. Dr Cash 100750
Cr Capital- Kacy spade 100750
(Investment in company)
b. Dr Office supplies 1250
Cr Cash 1250
(to purchase office supplies on cash)
c. Dr Office equipment 10050
Cr Accounts payable 10050
( To record purchase of office equipment)
d. Dr Cash 15500
Cr Service fee income 15500
( To record service provided to customer)
e. Dr Accounts payable 10050
Cr Cash 10050
( To record payment of office equipment purchase)
f. Dr Account receivable 2700
Cr Service revenue 2700
(To record service revenue)
g. Dr Rent expense 1225
Cr Cash 1225
( To record rent expense on cash)
h. Dr Cash 1125
Dr Account receivable 1125
( To record partial collection of receivable )
i. 1) Dr Retained earning 10000
Cr Dividend payable 10000
( To record dividend yet to be to shareholder )
2.) Dr Dividend payable 10000
Cr cash 10000
( To record Payment of cash dividend)
Cash capital-kacy spade
Dr____________Cr___ ___ DR ___________Cr
100750 --- 1250 --100750
15500 ---10050
---1225
1125-- 10000
Office supplies Office equipment
Dr ____________Cr__ __ Dr _____________Cr
1250-- 10050---
Accounts payable Service fee income
Dr_____________Cr_ __ Dr ___________Cr_
10050 ---- 10050 ---- 10050
---2700
Service revenue Account receivable
Dr_____________Cr__ _ Dr ______________Cr
-- 2700----1125
rent expense retained earning
Dr____________Cr__ _ Dr __________Cr__
1225-- 10000 ---- 10000
Dividend payable
Dr_______________Cr
10000 --- 10000
Trial Balance
Cash 94850 100750 Capital-Kacy spade
Salary expense
Rent expense 1225 Account payable
Office Equipment 10050 Retained earning
Prepaid insurance 12750 Service revenue
office supplies 1250 Dividend payable
Account receivable 1575
total 108950 = 108950