The competitive industry of children's pajamas is in long-run equilibrium when a new government safety regulation raises the average cost of children's pajamas by $2 per pair. If this is a constant cost industry, then what happens to the price of children's pajamas in the long run?

Answer:

Long-run profits will remain the same.

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

Sunland Company sells office equipment on July 31, 2022, for $22,080 cash. The office equipment originally cost $72,560 and as of January 1, 2022, had accumulated depreciation of $38,910. Depreciation for the first 7 months of 2022 is $4,980.

Required:
Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.

sykes company has sales revenue of $585,700. Cost of goods sold before adjustment is $335,900. The company's actual manufacturing overhead is $92,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit

A company purchased a marketable security for $10,000 on 3/3/2013. On 3/30/2013, the company prepared its financial statements and marked the security to its market value, which was $17,500. The security was sold on 4/30/2013 for $15,000. The company used the Trading Securities method to account for the security. The statutory tax rate is 35%. What was the effect of the sale of the security on Income Tax Payable on 4/30/2013

Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:

Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share

What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.

Waterway Industries Recorded operating data for its Cheap division for the year. Waterway requires its return to be 10%. Sales $1600000 Controllable margin 88000 Total average assets 4400000 Fixed costs 100000 What is the ROI for the year

cutter enterprises purchased equipment for $75,000 on january 1, 2021. the equipment is expected to have a five-year life and a residual value of $4,200. using the double-declining-balance method, depreciation for 2021 and the book value at december 31, 2021, would be: book

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.

a. Sale of Common Stock.
b. Sale of Land
c. Purchase of Treasury Stock
d. Merchandise Sales
e. Issuance of a long-term note payable
f. Purchase of merchandise
g. Repayment of note payable
h. Employee salaries
i. Sale of equipment at a gain.
j. Issuance of bonds

The accountant for Fazzi Corp. was preparing a bank reconciliation as of April 30, 2017. The following items were identified: Fazzi's book balance $46,200 Outstanding checks 1,100 Interest earned on checking account 50 Customer's NSF check returned by the bank 500 In addition, Fazzi incorrectly recorded a customer's check in cash receipts as $150; the bank recorded the amount correctly as $510. What amount will Fazzi report as its adjusted cash balance at April 30, 2017

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,400 hours at $10.50 What is the direct labor time variance

Caterpillar Inc. (CAT) pays an annual dividend of $4.45. The company is expected to continue paying this dividend with no future growth in dividends. Investors require 11% rate of return on this investment. What is the current stock value of CAT

Creating a Budget
Before you can make a spending plan that works for your particular situation, you'll need to understand your spending priorities. What must you spend money on, and what items do you simply want? First, make sure you understand the following terms:
budget: a plan for saving and spending
expenditure: the amount of money spent
necessity: an item that a person must have, such as housing, clothing, or food
luxury: an item that offers physical comfort or enjoyment but is not necessary for life and health.
1. Classify each of the following expenditures as a necessity or a luxury. If any item can be considered either a necessity or a luxury, depending on the situation, classify it as either.
Expenditure Necessity Luxury Either
a. Auto insurance
b. Clothing for school
c. Concert tickets
d. Dinner for two at the newest
e. restaurant in town Groceries
f. Music downloads
g. Medical treatment for strep throat
h. Theme park tickets
i. New car
j. Rent
k. School lunches
I. School ski trip
m. Cell phone service
2. For those items that you indicated could be either necessities or luxuries, describe when you would consider them necessities and when you would view them as luxuries.
MAKING A BUDGET
3. Income First, write down your weekly income: $______.
4. Expenditures For one week, keep track of all of your expenditures. At the end of the week, put the totals in the table below.
Weekly Expenditure Current Amount
Clothing $
Debt repayment (monthly payment + 4) $
Entertainment $
Food (including groceries, meals
out, and snacks) $
Rent and utilities (monthly payment = 4) $
Transportation (own car, ridesharing, public
transportation, etc.) $
Personal care items $
Other $
Total Weekly Expenditures $
5. Subtract your total expenditures from your weekly income.
6. Revised budget
At the end of the week, did you have any money left? Or did you spend more than you earned? If you want to make better use of your money, take a look at how you're spending it and decide where you can trim expenditures. You may find that you could be spending your money on something you really want.
Weekly Expenditure New Budget Actual Spending
Clothing $ $
Debt repayment (monthly payment + 4) $ $
Entertainment $ $
Food (including groceries, meals out,
and snacks) $ $
Rent and utilities (monthly payment + 4) $ $
Transportation (own car, ridesharing,
public transportation, etc.) $ $
Personal care items $ $
Other $ $
Total Weekly Expenditures $ $
7. Using your revised budget as a guide, record your income and expenses for another week. How much money were you able to save?

The beauty of an economic model comes from:______.
a. its ability to represent a complex reality without any simplification.
b. its ability to make clear predictions that are consistent with reality.
c. its simplicity in presenting the essential elements of an otherwise complex reality.
d. b and c.

Lafayette, Inc. was incorporated on January 1, 2014. Lafayette issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Lafayette has not paid any dividends yet. In 2017, Lafayette had its first profitable year, and on November 1, 2017, Lafayette declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders

India now has pockets of strengths in key high-technology industries such as software and pharmaceuticals. Why do you think India is developing strength in these areas?

Sales $ 100,000 Operating expenses $ 94,000 Operating assets $ 40,000 Stockholder's equity $ 25,000 Cost of capital 10 % What is Sweet Dreams Company's return on investment (ROI)

Gullett Corporation had $34,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $83,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

A company has a Deferred Tax Liability of $35,000. Now, the government has just changed the statutory tax rate from 35% to 30% effective immediately. What is the correct journal entry to record the impact of this tax rate change

Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the following 5 years.

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2800 units, the actual direct labor cost was $83200 for 5200 direct labor hours worked, the total direct labor variance is $2800 unfavorable. $800 favorable. $800 unfavorable. $500 unfavorable.

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.

Cost Element Standard (per unit) Actual

Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards ($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours ($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60) $49,000 fixed overhead $37,000 variable overhead

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400.
Required:
Compute the total, price, and quantity variances for (1) materials and (2) labor.

Name four commercial services which are useful to the manufacturer​

Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 40 parts. A part requires 6 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batch is 5 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time fill in the blank 1 min fill in the blank 2 min Non-value-added time fill in the blank 3 min fill in the blank 4 min Total lead time fill in the blank 5 min fill in the blank 6 min Value-added ratio (as a percent) fill in the blank 7 % fill in the blank 8 %

Sysco Corporation, formed in 1969, is the largest global distributor of food service products, serving over 500,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those that occurred in a recent year (dollars are in millions). a. Purchased buildings costing $450 and equipment costing $234 for cash.
b. Borrowed $119 from a bank, signing a short-term note.
c. Provided $54,171 in service to customers during the year, with $23,358 on account and the rest received in cash.
d. Paid $129,574 cash on accounts payable.
e. Purchased $41,983 of inventory on account.
f. Paid payroll, $5,240 during the year.
g. Received $19,043 on account paid by customers.
h. Purchased and used fuel of $1,600 in delivery vehicles during the year (paid for in cash).
i. Declared $598 in dividends at the end of the year to be paid the following year.
j. Incurred $126 in utility usage during the year; paid $93 in cash and owed the rest on account.
Required:
For each of the transactions, prepare journal entries.

Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative​ advantage, ______.

Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs 55 Fixed costs: Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (50%) 320 Targeted selling price $960 For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order

whistle works manufacturers safety whistle keychains. They have the following information available to prepare their master budget whistle works sells eafch whistle for $12. It takes .25 direct labor hours to produce each whistle at a cost of $15 per hour. How much will direct labor cost be in December

The following information is available for Cubic Company before closing the accounts. After all closing entries are made, what will be the balance in the Retained earnings account

A newly independent Eastern European nation wants to adopt a floating exchange rate system in order to restore monetary control to its government. Using the monetary autonomy argument, how do this country's ministers justify establishing this system? Trade deficits are determined by the balance between savings and investment in a country, not by the external value of its currency. Unpredictability of exchange rate movements makes business planning difficult. Speculation in exchange rates dampens the growth of international trade and investment. Each country should be allowed to choose its own inflation rate. Variable exchange rates are more receptive to a trade balance.

Excellent Company has provided the following operating information for one of its divisions: Sales $100,000 Variable expenses $55,000 Contribution margin $45,000 Direct fixed expenses $35,000 Common fixed expenses allocated in proportion to sales amounts to $16,000. Based on the provided information, calculate the division's segment margin.