Consider a market where the demand and supply for the good are described by the following equations: begin mathsize 14px style s

Answer:

The answer is "$7,630".

Explanation:

If we take into account that there are four weeks in a month, then

Joe's earnings can be calculated as:

=

= ($)

Zola's earnings can be calculated as:

=

=

= ($)

Thus,

The total gross monthly income would be:

=

=

= ($)

Answer:

The financial drawback amounts to 138,600.

Explanation:

The allocated and depreciation costs are inevitable and thus should be regarded as expenses for the purchase option.

Additionally, any income from the extra segment is applicable only to the purchase option.

The avoidable costs include:

Direct Materials

Direct Labor

Variable overhead

Supervisor's salary

These costs are absent in the purchase scenario.

The gain amounts to $370

Reasoning:

To determine the gain or loss for the date 12/31/2018, according to ABC's amortization schedule

On this date, the carrying value was $196,370 while ABC procured the bonds back for $196,000 on 12/31/2018

Now let’s compute the gain or loss using this formula

Gain/Loss = Carrying value - Bond stock

Substituting into the formula gives us Gain/Loss =$196,370-$196,000

Gain/Loss=$370

Therefore, on the date 12/31/2018, ABC will show a gain of $370

a. Cash Dr, $5,400

     To Sales $5,400

(Recording sales transaction)

b. Warranty Expense Dr, $330  

Estimated Warranty Liability $330

(Recording recognized warranty expense)  

($5,500 × 6%)

c. Estimated Warranty Liability Dr, $435

       To Inventory $435

(Recording warranty execution)  

(29 razors × $15)

d. Cash Dr, $16,200  

       To Sales $16,200

(Recording sales transaction)

e. Estimated Warranty Liability Dr, $360

        To Inventory $360

(Recording warranty execution)

(24 × $15)

f. Warranty Expense Dr, $972

           To Estimated Warranty Liability $972

(Recording recognized warranty expense)

($16,200 × 6%)

2. The amount of warranty expense for November 2016 and December 2016 is as follows:-

Warranty Expense for Nov 2016 = $5,500 × 6%

= $330

Warranty Expense for Dec 2016 = $16,200 × 6%

= $972

3. The warranty expense for January 2017 is computed as follows:-

Warranty Expense for Jan 2017 =$10,800 × 6%

=$648

4. The balance of the Estimated Warranty Liability account on December 31, 2016 is calculated as:-

Balance of Estimated Warranty Liability on 31 Dec 2016 = Warranty Liability for Nov 2016 + Warranty Liability for Dec 2016 - Warranty Claim in Dec 2016

=$330 + $972 - $648

=$654

5. The balance of the Estimated Warranty Liability account on January 31, 2017 is calculated as:-

Balance of Estimated Warranty Liability on 31st Jan 2017 = Balance on 31 Dec 2016 + Warranty Liability for Jan 2017 - Warranty Claim in Jan 2017

=$654 + $648 - (29 × $15)

=$654 + $648 - $435

=$867