The cashew industry is perfectly competitive and until now each of the identical firms in the industry have been earning zero economic profits while selling ay units of output each (for a combined industry-wide total of qy units) at a market equilibrium price of P1 per unit. An unexpected increase in the demand for cashews raises the market equilibrium price to P2, which creates a situation in which P2 exceeds MC at 91 units of output.
a. If the firms continued producing 91 units each, would their combined output of cashews be too little, too much, or just right to achieve allocative efficiency?
i. Just right
ii. Too much
iii. Too little
b. In the long run, what will happen to the supply of cashews and the price of cashews?
i. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P1.
ii. The industry's supply of cashews will be less than Q1 and the price of cashews will be less than P1.
iii. The industry's supply of cashews will equal Q1 and the price of cashews will equal P2.
iv. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P2.

Answer:

a. iii. Too little

b. i. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P1.

Explanation:

Allocative efficiency refers to the point in production where Marginal Revenue equals Marginal cost. As this is a perfectly competitive market, marginal revenue is the same as price which as shown in the question, exceeds Marginal cost. The firms are therefore producing too little to achieve allocative efficiency and need to produce more to make price and marginal cost equal.

In the long run, the firms will produce more such that supply would exceed the original quantity supplied of Q1. This will lead to the price falling back to P1 as there is now less scarcity.

On January 1, 2018, ABC purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. Assume the truck was totaled in an accident on December 31, 2019. What amount of gain or loss should ABC record on December 31, 2019 (If a loss, put a minus number in front)

The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the ____________ the slope of the SML. Which of the following statements best describes the shape of the SML if investors were not at all risk averse?

a. The SML would have a positive slope, but the slope would be flatter than it would be if investors were risk.
b. The SML would be a horizontal line.
c. The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk averse.
d. The SML would have a negative slope.

A $500,000 bond issue sold at 98. Therefore, the bonds: Multiple Choice Sold at a premium because the stated rate of interest was higher than the yield rate. Sold at a discount because the stated rate of interest was lower than the effective rate. Sold at a discount because the effective interest rate was lower than the face rate. Sold for the $500,000 face amount less $10,000 of accrued interest.

Macgregor Company completed its first year of operations on December 31, 2020. Its initial income statement showed that Macgregor had revenues of $192,000 and operating expenses of $78,000. Accounts receivable and accounts payable at year-end were $60,000 and $23,000, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash provided by operating activities

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.5 ounces $ 8.00 per ounce $ 60.00 Direct labor 0.9 hours $ 19.00 per hour $ 17.10 Variable overhead 0.9 hours $ 8.00 per hour $ 7.20 The company reported the following results concerning this product in June. Originally budgeted output 2,900 units Actual output 2,500 units Raw materials used in production 19,500 ounces Purchases of raw materials 22,400 ounces Actual direct labor-hours 4,700 hours Actual cost of raw materials purchases $ 41,400 Actual direct labor cost $ 12,900 Actual variable overhead cost $ 3,450 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is: Multiple Choice $1,386 U $6,000 U $6,000 F

Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records for the month of June 2021:
Cost Retail Beginning inventory $ 120,000 $ 146,000 Net purchases 383,000 580,000 Net markups 33,000 Net markdowns 51,000 Net sales 600,000
To the nearest thousand, estimated ending inventory is:_______.

Boss Company reported the following results for the year ended December 31, 2019, its first year of operations: 2019 Income (per books before income taxes) $ 1,500,000 Taxable income 2,500,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2019. What should Boss record as a net deferred tax asset or liability for the year ended December 31, 2019, assuming that the enacted tax rates in effect are 40% in 2019 and 35% in 2020

Project manager Claire and her team need to minimize project risks. Help them match the step to minimize risk to what each step Involves.

The following information is for Hulk Gyms' first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Year Future Taxable Amounts Future Amounts 2021 2022 2023 2024 2025 Total Accounting income $ 124 Temporary difference: Prepaid insurance (28 ) $ 7 $ 7 $ 7 $ 7 $ 28 Taxable income $ 96 Required: Prepare a compound journal entry to record the income tax expense for the year 2021.

Jackson Co. (lessee) entered into a 10-year operating lease on January 1, Year 1. Annual lease payments are $30,000, and payments begin December 31, Year 1. The lessee knows that the rate implicit in the lease is 8%, and its incremental borrowing rate is 7%. The useful life of the asset is 20 years. How should Jackson Co. account for the lease in the income statement

During 2022, Crane Company entered into the following transactions.
1. Purchased equipment for $310,720 cash.
2. Issued common stock to investors for $138,050 cash.
3. Purchased inventory of $68,620 on account.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the right-hand margin.
Assets = Liabilities + Stockholders' Equity
Cash + Inventory + Equipment = Accounts Payable + Common Stock + Retained
Earnings
(1)
(2)
(3)

CarCut Corporation has been employing the Fixed-Order Quantity model to manage the inventory of its best selling 3D printer. The current inventory policy places exactly 60 orders each year. The monthly inventory holding cost is $25 per unit and the setup cost is $50 per order. The demand during lead time is constant, and it takes a lead time of 2 days to receive a shipment. Assume CarCut operates 360 days per year. What is the optimal reorder point in units

3. What do you think has more risk: buying corporate bonds or buying a second house in hopes that housing prices increase?

The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. prepaid insurance bonds payable

Item Classification
1. Current portion of long-term debt.
2. Notes payable (due in 6 to 11 months).
3. Sales taxes payable.
4. Bonus payable (to be paid in 60 days)
5. Warranty liability (6 months of coverage)
6. Prepaid Insurance (6 months of coverage)
7. Notes payable (due in 120 days).
8. Salaries payable.
9. Pension liability (to be fully paid to retired employees in next 11 months)
10. Bonds payable (due in 2 years)

You are given the following information on Parrothead Enterprises:
Debt: 9,300 6.5 percent coupon bonds outstanding, with 22 years to maturity and a quoted price of 104.75. These bonds pay interest semiannually and have a par value of $1,000.
Common stock: 240,000 shares of common stock selling for $64.80 per share. The stock has a beta of.93 and will pay a dividend of $3.00 next year. The dividend is expected to grow by 5.3 percent per year indefinitely.
Preferred stock: 8,300 shares of 4.65 percent preferred stock selling at $94.30 per share. The par value is $100 per share.
Market: 11.7 percent expected return, risk-free rate of 3.75 percent, and a 23 percent tax rate.
Calculate the company's WACC. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %

Effective managers should Question 26 options: convince employees to engage in relationship conflict rather than the other forms of conflict. minimize the relationship conflicts that exist in the organization. remove all forms of conflict from the organization because it saps productivity. increase the amount of conflict among employees.

Journalizing Sales Transactions Enter the following transactions in a general journal. Use a 6% sales tax rate. May 1 Sold merchandise on account to J. Adams, $2,000 plus sales tax. Sale No. 488. 4 Sold merchandise on account to B. Clark, $1,800 plus sales tax. Sale No. 489. 8 Sold merchandise on account to A. Duck, $1,500 plus sales tax. Sale No. 490. 11 Sold merchandise on account to E. Hill, $1,950 plus sales tax. Sale No. 491. If an amount box does not require an entry, leave it blank.

Save the file in your Marketing 2 folder, and name it with Study, the section number, and your first initial and last name. For example, Jessie Robinson's study questions for Section 1 would be named Study 1 Robinson. Answer the questions for each lesson on the same day that you read the lesson. Save the file before closing it each day. Then turn in your answers to the study questions at the end of the section. Review Lesson 4 of the Course Overview for instructions about turning in your study questions. Section 4 Study Questions (15.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (5.0 points) 1. What is outsourcing

The following information relates to Hatami Company's defined benefit pension plan during the current reporting year:

Plan assets at fair value, January 1 $640,000,000
Expected return on plan assets 54,000,000
Actual return on plan assets 44,000,000
Contributions to the pension fund (end of year) 94,000,000
Amortization of net loss 0
Pension benefits paid (end of year) 36,000,000
Pension expense 64,000,000

Required:
Determine the balance of pension plan assets at fair value on December 31.

A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in outstanding credit card balances, $500 in government securities, $10 in currency in its vault, and $20 in deposits at the Fed. The bank's deposits that are part of M1 are equal to

Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (9 pounds at $1.90 per pound) $17.10 Direct labor (4 hours at $10.00 per hour) $40.00 During the month of April, the company manufactures 160 units and incurs the following actual costs. Direct materials purchased and used (2,100 pounds) $4,410 Direct labor (680 hours) $6,664 Compute the total, price, and quantity variances for materials and labor.

Novak Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $151 $139 $120 $113 $139 $113 Cost 95 101 101 101 63 45 Cost to complete 38 38 32 44 38 38 Selling costs 13 23 13 25 13 25 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of

Sybil transfers property with a tax basis of $5,000 and a fair market value of $6,000 to a corporation in exchange for stock with a fair market value of $3,000 and $2,000 cash in a transaction that qualifies as a section 351 transfer. The corporation assumed a liability of $1,000 on the property transferred. What is Sybil's tax basis in the stock received in the exchange?
A) $6,000.
B) $5,000.
C) $4,000.
D) $3,000.

The Smoot-Hawley Act, signed into law in 1930, increased U.S. tariffs to an unprecedented level of 53%, causing a sharp decline in U.S. exports. In 1934, however, changes in the U.S. trade policy enabled U.S. manufacturers to resume business with their foreign distributors. Which of the following is the most likely reason for the increase in U.S. exports after these changes?
A. The president received the authority to negotiate bilateral tariff-reduction agreements with foreign governments.
B. The scientific tariff was introduced, which allowed the president to increase tariff levels if foreign production costs were below those of the United States.
C. Congress was given the authority to approve bilateral trade agreements.

When Jake became one of three final candidates for a managerial position with a large medical supply company, the director of the department scheduled a special meeting with him. There, the two talked about the challenging deadlines and heavy travel required of the position, as well as the great compensation and multiple perks. Jake appreciated that the director took time to conduct a(n) _______. Realistic job preview Performance appraisal Behavioral-description interview Situational interview Unstructured interview

For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $91,000 and $3,000, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $413,000 and $417,000, respectively, and $3,690 in accounts receivable were written off. Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, is:

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Cost Item Estimated Unit Cost Direct material $ 32 Direct labor 20 Variable manufacturing overhead 15 Fixed manufacturing overhead 6 Variable selling expenses 3 Fixed selling expenses 4 What are the estimated conversion costs per unit?

Kayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak Company's production costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied $6,000. The predetermined overhead rate was: Multiple Choice 5.0%. 12.0%. 20.0%. 500.0%. 16.7%

Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $282,000, total variable expenses were $214,320, and fixed expenses were $36,900. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase total sales by $1,700? (Do not round intermediate calculations.)

Blossom Company has the following inventory data: July 1 Beginning inventory 35 units at $22 $770 7 Purchases 124 units at $24 2976 22 Purchases 18 units at $26 468 $4214 A physical count of merchandise inventory on July 30 reveals that there are 57 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is