Answer:
When demand for the product is highly elastic and the supply is relatively inelastic.
Explanation:
Subsidy is an amount of money given to companies by the government to boost production. It is an intervention by the government when economic situation in the free market is unfavourable.
When firms recieve money to boost production their cost of production is reduced.
If demand is highly elastic a small change in price will result in large change in quantity demanded. Companies will sell more goods at a reduced cost.
Of the supply is relatively inelastic there will be a degree of scarcity of the good so prices will go up, and the company willake more money.
a. How much would Kaufman Manufacturing’s total operating income increase?
Kaufman Manufacturing's total operating income would increase by $300,000.
To calculate the increase in Kaufman Manufacturing's total operating income, we need to compare the cost of purchasing the materials from outside suppliers with the cost of producing the materials in the Electronic Division and transferring them to the Appliance Division at the established transfer price.
If Kaufman Manufacturing purchases 150,000 units of materials from outside suppliers, the cost would be $25 per unit, which gives a total cost of:
150,000 x $25 = $3,750,000
If the Electronic Division produces 150,000 units of materials at a variable cost of $20 per unit, the total cost would be:
150,000 x $20 = $3,000,000
At a transfer price of $22 per unit, the total revenue from transferring the materials would be:
150,000 x $22 = $3,300,000
Therefore, the total operating income would be:
$3,300,000 - $3,000,000 = $300,000
So Kaufman Manufacturing's total operating income would increase by $300,000.
Learn more about total operating income
#SPJ11
Answer- Don't trust the offer, scamming companies often send emails like the ones she received to scam people out of their information. She should go to the banks website to verify that the offer is true.
Answer:
Jose would suggest Michelle not to trust the offer because scamming companies are trying to scam people's information. Jose would suggest her to visit the bank’s website or the bank to ensure that the offer is valid
Balance, Jan. 1
7,000
Receipts from customers
365,700
Payments for goods
275,100
Dividends on stock investments
5,600
Payments for operating expenses
139,500
Proceeds from sale of equipment
37,000
Interest paid
11,400
Proceeds from issuance of Taxes paid
8,300
bonds payable
500,000
Dividends paid
60,100
Balance, Dec. 31
420,900
What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Net cash The following T-account is a summary of the Cash a (provided/used) by financing activities _______ $The following T-account is a summary of the Cash a
The sources and uses of cash resulting from operating, investing, and financing operations are shown on a statement of cash flow. Net cash flow from Finance Activities will be $ 439,900.
The sources and uses of cash resulting from operating, investing, and financing operations are shown on a statement of cash flow. The activities of cash created from the business's operational activities and cash payments made for transactions and operating activities for the manufacture of goods are known as cash flow from operating activities.
The indirect approach allows for the calculation of net cash flow from operational operations by deducting non-cash effects and changes in current assets and liabilities from the company's net income.
Cash flow from investing activities includes the buying and selling of real estate, machinery, and marketable securities. Asset purchases and sales result in cash outflows and inflows, respectively.
Obtaining funds through paying off long-term debt or Cash flow from financing activities refers to long-term debt that is used for business operations. The issuance of financial securities will boost the company's cash inflow, while loan repayment will boost its cash outflow.
Learn more about Cash flow here
# SPJ 5
Answer:
D
Explanation:
Answer:
Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.
Explanation:
Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.