The following information was taken from Cody Co. ’s accounting records for the year ended December 31, year 2:


Decrease in raw materials inventory


$ 15,000


Increase in finished goods inventory


35,000


Raw material purchased


430,000


Direct labor payroll


200,000


Factory overhead


300,000


Freight-out


45,000


There was no work in process inventory at the beginning or end of the year. Cody’s year 2 cost of goods sold is


a. $895,000


b. $910,000


c. $950,000


d. $955,000

Answers

Answer 1

The Cody’s 2-year cost of goods sold (COGS) is $910,000

What is COGS?

The direct cost of producing a company's goods is known as its cost of goods sold (COGS). It is a significant line on your income statement that can provide you with a wealth of information regarding your business's financial expenditures , effectiveness, and profitability. Depending on how much product you manufacture, COGS may include expenditures for labour and raw materials. It excludes indirect expenses like office fees, executive salaries, and expenditures costs that the company must pay regardless of the volume of goods produced. The following formula is used to determine COGS: Cost of goods sold (COGS) is equal to the cost of raw materials, labour, and any other direct costs incurred during the time.

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Related Questions

Which role does human resources have in relation to the Equal Employment Opportunity Commission (EEOC) in this scenario?

Answers

In this scenario, the role of human resources in relation to the Equal Employment Opportunity Commission (EEOC) would likely be to ensure compliance with the laws and regulations set forth by the EEOC.

This would include implementing policies and procedures to prevent discrimination in the hiring, promotion, and termination of employees, as well as ensuring that any complaints or allegations of discrimination are properly investigated and addressed.

Additionally, human resources would be responsible for providing training and education to employees and management on the laws and regulations set forth by the EEOC, as well as on preventing discrimination in the workplace.

Human resources would also act as a liaison between the company and the EEOC, ensuring that the company is aware of any updates and changes to the laws and regulations and that the company is meeting the requirements of the EEOC.

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Company U has no debt outstanding currently and the cost of equity is 12%. Its EBIT is expected to be $ 201896 every year forever. The tax rate is 35%. Calculate the value of the firm. Company U has no debt outstanding currently and the cost of equity is 12%.

Answers

The value of the firm Company U has no debt outstanding currently and the cost of equity is 12%. Hence, the correct answer is $ 10,93,603,  $1252326, and 14.51%.

What is equity?

Equity is ownership of assets that may be burdened by debts or other responsibilities. Accounting equity is calculated by subtracting liabilities from the value of assets. For example, if someone owns a car worth $24,000 but owes $10,000 on the loan used to purchase it, the $14,000 difference is equity. Equity can refer to a single item, such as a vehicle or a home, or it can refer to a whole firm. A company that needs to start up or expand its operations might sell its stock to generate funds that do not have to be returned on a defined timeline.

1) Where there is no debt

Value of Company U = EBIT(1-tax rate) / Cost of Equity

= 201896(1-35%) / 12%

= 201896(1-0.35) / 0.12

= 201896(0.65) / 0.12

=131232/0.12

=$ 10,93,603

2) Where the company borrows $ 453493 and uses the proceeds to repurchase the shares

Value of company U = Value of unlevered firm + (Debt x tax rate)

= 1093603 + (453493 x 35%)

= 1093603 + 158723

= $1252326

3) here the value of equity = value of the company - the value of debt

= 1252326 - 158723

= $1093603

Thus debt to equity ratio = Debt/equity

= 158723/1093603

=0.1451

i.e 14.51%

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In corporate governance, _____ is the process of auditing and improving organizational decisions and actions.

Answers

CONTROL in corporate governance refers to the process of monitoring and enhancing organisational choices and actions.

Corporations, governments, quasi organisations, political organizations, international institutions, armed services, charities, n't yet corporations, partnerships, unions, and educational institutions, among others, are all legal sorts of organizations. A hybrid firm is one that works in both the public and private sectors at the same time, fulfilling public tasks while also growing commercial market operations. A voluntary association is a group made up entirely of volunteers. Depending on jurisdiction, such organizations might be able to operate without legalities, such as informal clubs or coordinating carcasses with a goal in mind, which they may express in the form of a manifesto, mission, or in an informal way reflected in what they do, because every action taken by an organization, legal or illegal, reflects a goal.

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Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
A. becoming too fixated on cost reduction
B. overly aggressive price-cutting
C. having the basis for the firm's cost advantage undermined by cost-saving technological breakthroughs that can be readily adopted by rival firms
D. setting the industry's price ceiling to capture volume gains and achieve economies of scale
E. relying on an approach to reduce costs that can be easily copied

Answers

Among the followings, overly aggressive price-cutting is not one of the pitfalls of a low-cost provider strategy.

What do you mean by Low-Cost Provider Strategy?

Low-Cost Provider Strategy is a business model that focuses on providing customers with products and services at the lowest possible price. This is done by reducing overhead costs and cutting out unnecessary expenses. Low-cost providers strive to be the absolute most cost-effective option in the market by offering the lowest prices for the same quality of goods or services. This model works best when there is a large customer base that desires to purchase a certain type of product or service at a low price. Low-cost providers are usually able to pass on the savings to customers, enabling them to purchase the same quality of product or service at a lower cost. This strategy is often used by companies that have a competitive advantage such as a large market share, economies of scale, or access to cheaper resources.

So, The correct option is A.

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Which events occurred in Florida before the stock market crash and helped bring about the Great Depression

Answers

Hurricanes often hit the United States between 1926 and 1928. Floridans had therefore started to experience difficulty prior to the stock market crash, which sparked the Great Depression in 1929.

A stock market, also known as an equity market or share market, is the collection of individuals who buy and sell stocks, also known as shares, which represent ownership stakes in corporations. These securities may be listed on a public stock exchange or only traded privately, such as shares of private corporations that are offered to investors through equity crowdfunding platforms. An investing plan is often included when making an investment. The buying and selling of shares, bonds, and other securities takes place on a stock exchange. Stocks from several big businesses are traded on a stock market. This increases the stock's liquidity and, as a result, its allure to many investors. Additionally, the exchange could guarantee settlement.

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Which of the following is not one of the characteristics of a mature profession?
a) code of ethics
b) licensing
c) mandatory drug testing
d) mandatory professional development
e) professional education

Answers

Mandatory drug testing is not one of the characteristics of a mature profession.

What is Drug testing?

In a sample of your urine (pee), blood, saliva (spit), hair, or perspiration, a drug test checks for indications of one or more illicit or prescription medications. A drug test is used to check for drug usage and misuse, which may include:

using any illicit drugs, including cocaine or club drugs

Taking prescription medications improperly refers to doing so in a manner or for a purpose other than that which your doctor has directed. Examples of drug abuse include taking someone else's medication or utilizing a painkiller obtained with a prescription to unwind. The majority of drug testing use urine samples. These tests are capable of detecting drug use anywhere between hours and many days or more before the test.

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Which of the following approaches to value involves the process of developing an opinion of value by using sales of similar properties to estimate the value of the subject property? Sales comparison approach

Answers

The sales comparison approach is one of the approaches to value that involves the process of developing an opinion of value by using sales of similar properties to estimate the value of the subject property.

This approach compares the subject property to similar properties that have recently sold in the same area and uses the sale prices of those properties as a guide to estimate the value of the subject property.

Factors such as location, size, condition, and features of the properties are considered in the comparison. The sales comparison approach is also known as the market data approach or the comparable sales approach.

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What exists when a real estate firm or a real estate licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction

Answers

When a real estate company or licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction, this is known as dual agency.

Is it possible to act as a buyer and a seller in the same transaction?

They cannot give confidential advice and must maintain neutrality and not represent either you or the buyer. By signing an Agreement to Represent Both Buyer and Seller, both parties must give their informed consent for a real estate professional to proceed with transaction brokerage.

When you act as a buyer's or seller's representative, what is it called?

When both the buyer and the seller use the same brokerage, this is known as dual agency. It can also happen when a buyer calls the listing agent directly, like through an online listing or a for-sale sign, without having a buyer's agent.

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Economists view the fact that Florida grows oranges, Texas pumps oil, and California makes wine as Oa. confirmation of the infant-industry argument. O b. confirmation of the virtues of free trade. O c. confirmation that specialization in absolute advantage works. O d. confirmation that free trade agreements are not necessary.

Answers

The fact that California produces wine, Texas produces oil, and Florida produces oranges is seen as evidence of the benefits of free trade by economists.

California is a state on the west coast of the United States. It is the third-largest state in terms of area and has the most residents in the US, with over 39.2 million people living there in a total area of around 163,696 square miles. It ranks as the 34th most populous subnational entity on the earth and is the most populous in North America. The Greater Los Angeles Area and the San Francisco Bay Area are the second and fifth most populated urban areas in the US, with over 18.7 million and over 9.6 million inhabitants, respectively. The second-most populous metropolis in the US and the most populous city in the state is Los Angeles, which has its headquarters in Sacramento.

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When a patient allows the provider to bill their insurance company and collect payment from the insurer, this is known as:

Answers

Assignment of benefits occurs when a patient authorizes the clinician to bill their insurance company and obtain payment from the insurer. Thus, the Assignment of benefits is the correct answer.

What exactly is a benefit assignment?

An AOB is a contract that transfers the insurance policy's claims rights or benefits to a third party. An AOB authorizes the third party to submit a claim, make repair choices, and collect insurance funds without the homeowner's input. For many years, AOBs have been utilised in conjunction with life and health insurance plans. AOBs, on the other hand, are increasingly being employed in homeowners' insurance claims by repair businesses and contractors. Signing an AOB might assist you through the claims process, but if it is misused, it can have negative ramifications for the homeowner.

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Identify the influential agencies and stakeholders you would include in your plan. Describe the roles of the nurses in disaster planning and actual disasters. How would you ensure the nurses on the unit understand their roles in the disaster plan

Answers

Disasters are classified as sudden accidents or catastrophic events that result in loss of life or other life forms and cause material, economic or environmental damage that cannot be addressed by affected communities and societies alone.

They can be caused by natural disasters, man-made disasters, technological disasters, and various factors that affect community exposure and vulnerability.

Authorities that can be included in a disaster plan are:

NIDM (National Institute for Disaster Management)

National Disaster Management Agency (NDMA)

National Disaster Response Force (NDRF)

International Strategy for Disaster Risk Reduction (ISDR)

world health organization

Local Fire Brigade, Police, Ministry of Foreign Affairs, Civil Defense, Home Guard

Stakeholders that can be included in a disaster plan include:

members of the board of directors

regulator

politician

medical professionals

Investor

patients and their families

volunteer

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If the price elasticity of demand for a good is 1.2, then a 3 percent decrease in price results in a
a. 0.4 percent increase in the quantity demanded.
b. 2.5 percent increase in the quantity demanded.
c. 3.6 percent increase in the quantity demanded.
d. 6 percent increase in the quantity demanded.

Answers

If the price elasticity of demand for a good is 1.2, then a 3 percent decrease in price results in a 3.6 percent increase in the quantity demanded.

What does  means?

Price elasticity is a measure of how sensitive a good or service's demand is to price changes. It is calculated by dividing the percentage change in quantity demanded by the price change. A high price elasticity of demand indicates that the quantity demanded is highly sensitive to price changes, whereas a low price elasticity of demand indicates that the quantity demanded is less sensitive to price changes.

What is Quantity demanded ?

Quantity demanded is an economic term that describes the amount of a good or service that a consumer is willing and able to purchase at a given price. It is the inverse of demand and is a component in the determination of price. In order to determine a product’s market price and understand the relationship between price and demand, it is important to understand the concept of quantity demanded. The quantity demanded is determined by a customer's willingness and ability to purchase a good or service at a certain price. When demand is high, the quantity demanded is high, and when demand is low, the quantity demanded is low.

Therfore the correct option is C.  3.6 percent increase in the quantity demanded.

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Which challenge requires the instructor to work with superiors to affect change within organizations

Answers

Our feelings about learning and how they change as we move from a low-order process like listening to a higher-order process like resolving a problem are all part of the affective learning domain.

Why are there three learning domains?

Teachers play a crucial role in the teaching process by creating and delivering lessons. Teachers must therefore ensure that students achieve the three learning domains of cognitive (thinking), affective (emotions or feelings), and psychomotor (physical or kinesthetic).

In Krathwohl's affective domain, which of the five levels best explains each level?

From the lowest to the highest level, there are five levels in the Affective Domain Taxonomy: receiving, responding, valuing, putting together, and describing (Krathwohl et al., 1964; Anderson and others, 2001).

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What are the 5 stages of migration?

Answers

There are five common migration approaches: Retire, Replace, Re-host, Rearchitect, and Retain.

What are the  stage of migration?

With Retire, the application is at end of life, and it is easier to retire, than migrate the application. Replace is very common where business workloads have equivalent Software as a Service offerings. Re-host or (also known as lift and shift) is where an application is migrated to a set of virtual machines as part of an Infrastructure as a Service (IaaS) offering from a cloud provider. Rearchitect requires converting the application to run as a Platform as a Service (PaaS), which is significantly more costly than rehosting, but can be advantageous as the upgraded application will likely have lower on-going management complexity and operating cost compared to rehosting. retain refers to retaining the application on-premises for when continuing in place is the only realistic option. This option is common for applications with regulatory or geographic requirements that cannot be met by current cloud offerings.

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Big City Financial is allowing stockholders to purchase more shares of stock at prices below the existing market value. This is an attempt to avoid a hostile takeover by a corporate raider. Which of the following methods is being used by Big City Financial to evade the takeover

Answers

The stock that all of a company's shareholders now own is referred to as shares outstanding.

What stock refers to issued stock that is currently held by stockholders?

These consist of restricted shares owned by company officers and insiders as well as share blocks held by institutional investors.

The term "issued shares" refers to the total stock of an organization's equity shares held by customers, employees, and insiders. Unlike outstanding shares, treasury shares—stock that a business buys back from shareholders—are included in issued shares. In order to determine important measures for a company, including its market capitalization, profits per share (EPS), and cash flow per share, the number of outstanding shares is taken into account (CFPS).

The number of outstanding shares of a firm is not constant and is subject to rapid changes throughout time. The stock that all of a company's shareholders now own is referred to as shares outstanding.

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the sale of land held for investment results in the following type of gain or loss?

Answers

the sale of land held for investment results in the following type of gain or loss A. Capital

Money spent on assets with the hope that their value would rise over time is known as an investment. To invest, a current resource must be sacrificed, be it time, money, or effort.Making money from the asset that is being used is the aim of investing in the financial world. The return may also contain an unrealized capital gain (or loss), investment income such as dividends, interest, or rental income, a combination of capital gain and income, and a gain (profit) or loss realized on the sale of a home or investment. The return could potentially include foreign exchange profits or losses as a result of shifting exchange rates.Investors assert that more risky investments frequently produce larger profits. a sound fiscal

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The complete question is here:

The sale of machinery at a loss that was used in a trade or business and held for more than one year

results in the following type of loss?

A. Capital.

B. §291.

C. §1231.

D. §1245.

E. None of these.

How do governments address economic externalities, such as damage to a nation's infrastructure used by its citizens

Answers

By taxing products and services that result in spillover costs, the government may deter negative externalities.

What are the policies to address externalities?

Negative externalities frequently lead to market failure. In certain circumstances, the government has three options: through regulation, Pigovian taxes, or tradeable pollution permits. By enacting new rules that directly control undesirable conduct, regulation enables the government to lower externalities.

One method of mitigating externalities is through taxes. To help minimize the negative effects of some externalities, such as pollution, governments might charge a tax on the things that cause them. The government can assist in promoting commodities and services that have positive externalities by providing subsidies to such products or services.

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based on your current knowledge and work experience, which strategic training and development initiatives do you think that all companies should support regardless of economic conditions

Answers

Regardless of the situation of the economy, a firm must keep its attention on its goals by promoting employees within the organization and providing them with ongoing training.

How would you define organization?

An organisation is a group of individuals who work together, such as a business, neighbourhood association, nonprofit, or union. A person, a group, a business, or the act of establishing or developing anything can all be referred to as a "organization."

Which three categories do organizations fall under?

Corporations, partnerships, and sole proprietorships are the three primary types of business entities in the US. In today's session, the benefits and drawbacks of each organizational model will be discussed using the low-cost chocolate industry as a case study.

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A new retail associate in another department asks you about the features of the merchandise in his department. You just explained all of this to him t

Answers

By clarifying it to the individual once again in a way that is clear and intelligible, so that you wouldn't leave without them repeating it or confirming that they grasp the subject that they find difficult to understand.

The easiest method to handle this is to repeat what you said in a way that the individual can comprehend, so that you won't leave without hearing him or her confirm that he or she knows the concept that they are having trouble understanding. The individual being questioned by the new retail worker has to be intelligible because they are new to their section and need some people to lead them through.

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When a firm's only variable input is labor, then the slope of the production function measures the
a. quantity of labor.
b. quantity of output.
c. total cost.
d. marginal product of labor.

Answers

When a firm's only variable input is labor, then the slope of the production function measures the marginal product of labor.

Hence, Option D is correct

The marginal product of labor, also known as MPL, is the increase in total production that occurs when a company adds one more unit of labor (typically one more employee), while keeping all other factors of production constant .When one unit of an input, like labor, is added to the current combination of productive factors, the additional output that results is known as the marginal product of that input. The increase in overall labor costs caused by adding one worker is known as the marginal cost of employing labor.The marginal physical product is multiplied by the average revenue or the product price to arrive at the value of the marginal product. Physical Product x Sales Price of the Product is a more straightforward way to calculate VMP.

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An economy has 670 people divided among the following groups: 200 have full-time jobs, 40 have one part-time job, 30 have two part-time jobs, 45 would like to work and are looking for jobs, 40 would like to work but are so discouraged they have given up looking, 130 are running their own businesses, 65 are retired, and 120 are small children. A) Calculate the labor force and the labor-force participation rateb) Calculate the number of unemployed and the unemployment ratec) Calculate total employment in two ways: as measured by the household survey and as measured by the establishment survey

Answers

The labor force is the sum of those employed and those unemployed. The labor force is therefore 200 + 40 + 30 + 45 = 315 people. The labor-force participation rate is the labor force divided by the total population, which is 315/670 = 46.6%.

What is labor force?

The labor force is a term used to describe the pool of people who are employed and actively looking for work. It is a measure of the total available workforce in a given population, and is often used to assess the overall health of an economy.

b) The number of unemployed is the sum of those who would like to work and are looking for jobs, plus those who would like to work but are so discouraged they have given up looking. This is 45 + 40 = 85 people. The unemployment rate is the number of unemployed divided by the labor force, which is 85/315 = 27.0%.

c) Total employment as measured by the household survey is the sum of those employed and those running their own businesses, which is 200 + 130 = 330 people. Total employment as measured by the establishment survey is the sum of those employed in full-time and part-time jobs, which is 200 + 40 + 30 = 270 people.

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Lillian is the purchasing manager at Ceramic Central, a maker of housewares. She has evaluated the first year's performance of Jason, a purchasing agent. In the evaluation, she noted that he places orders accurately, but when employees in the company ask about the status of their orders, he has difficulty finding the information for them in a timely manner. What should be the next step in performance management in this situation

Answers

Lillian should arrange for corporate training so Jason can learn how to look up the status of orders.

Corporate training is the process of making employees learn using a variety of training programs through a system of activities. It serves as a catalyst for employee achievement, which in turn indicates the overall success of your company or organization. According to a LinkedIn survey, 94% of employees said they would not leave a firm if it made a contribution in their learning requirements because training is seen as such a crucial aspect of their professional lives.

Most firms use the Learning Management System, or LMS, for their online corporate training. It makes the process of employee training and assessment more simple and candid and helps in tracking their development.

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Based on the graph shown above, which of the following is the equallibrium quantity and price at which the compony should sell the truck

Answers

Based on the graph shown above, the following is the equilibrium quantity and price at which the company should sell the truck: option B. 300 trucks at $6 per truck

What is an equilibrium quantity and price?

In economics, an equilibrium quantity and price refers to a state in which the quantity of a good or service that a seller is willing to supply is equal to the quantity that a buyer is willing to demand, and the price at which this transaction occurs is the equilibrium price. This is also known as market equilibrium.

At the equilibrium price, there is no surplus or shortage of the good or service, and the market is said to be in balance. If the price is higher than the equilibrium price, there will be a surplus of the good or service, and if the price is lower than the equilibrium price, there will be a shortage.

The equilibrium quantity and price are determined by the interaction of supply and demand in a market. When the supply and demand curves intersect, the equilibrium quantity and price are established.

Therefore, the correct answer is as given above

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The complete question goes thus:

A toy company created a new truck to offer to consumers.

Based on the graph shown above, which of the following is the equilibrium quantity and price at which the company should sell the truck?

A. 200 trucks at $8 per truck

B. 300 trucks at $6 per truck

C. 400 trucks at $8 per truck

D. 200 trucks at $4 per truck

Suppose Garnett and Kennedy own a Pearl District downtown apartment in tenancy by the entirety. If Garnett dies, what type of ownership does Kennedy now have

Answers

Kennedy currently possesses sole ownership in the event that Garnett passes away.

What are the benefits of sole proprietorship?

The initial costs are low. You are completely private. It's easy to start and run your own business. If things change, it's simple to wind up your business and change your legal structure later.

Who is known as a company's sole proprietor?

A person or legal entity that is the legal proprietor of a business is an owner. A corporation, which is a legal entity, may own one or more businesses. The individual owner (proprietor) of a sole proprietorship is specifically referred to as a "sole proprietor."

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During 2017, company XYZ had sales 252189; costs 130794; depreciation expense 43813; interest expense 19808; tax rate 35 percent. Given this information what is company XYZ net income

Answers

According to the data, the net income for the company XYZ is $37,553.

Net income, in both business and accounting, is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period. Your take-home pay, or net income, is what remains after taxes and other withholdings have been deducted from it. Net income is the money that remains after all business expenses have been paid.

Since net income is a company's final indicator of profitability, it is frequently used interchangeably with the term "profit." Since it indicates the leftover profit after all costs and expenses are deducted from revenue, net income is also known as net profit.

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Which process is used to develop risk profiles for a firm's information system projects and assets?
a. Information systems plan
b. Scoring model
c. Feasibility study
d. Systems analysis
e. Portfolio analysis

Answers

Requirements analysis creates a thorough description of the functions that the new system must carry out in addition to clearly defining the goals of the new or changed system.

Which four steps are involved in creating an information system?

The construction of an information system goes through six key phases: system survey, needs analysis, design, implementation, testing, change, and maintenance.

What are the five steps in the process for describing an information system?

These five components integrate to execute input, process, output, feedback, and control. Data instructions are sent into the systems at the input stage, when software programs then process the data.

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What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 11 years if the appropriate discount rate is 12%.

Answers

Bond Price = M / (1 + r)^n

=$1,000/(1+ 12%.)^11=9821.42

Finding a bond's fair price is the process of bond valuation. The theoretical fair value of a bond is the present value of the stream of cash flows it is anticipated to produce, much like with other securities or capital instruments. To determine a bond's value, future cash flows are discounted to the present using the appropriate discount rate. If there are comparable instruments, this discount rate is often determined in practice through comparison. The associated yield-measures are then calculated at the specified price.  On the other hand, if a bond's market price is higher than its face value.

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A firm that makes use of a _____ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments.

Answers

Stakeholder orientation refers to how well a company comprehends and responds to stakeholder needs. Compared to secondary stakeholders, primary stakeholders are small groupings.

Why is it crucial for companies to identify secondary stakeholder groups?

Because they have an impact on a company's reputation, secondary stakeholders are crucial. Compared to primary stakeholders, secondary stakeholders frequently speak up more. Compared to secondary stakeholders, primary stakeholders are small groupings.

What does a stakeholder orientation aim to accomplish?

Stakeholder orientation refers to a pattern of social responsibility ideals, decision-making, or conduct in which managers make decisions and take actions while taking into account the interests of numerous stakeholder groups, such as consumers, employees, etc.

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Generosity towards others is an example of ______ in the business world. Multiple choice question. weakness accountability caring competence

Answers

In the business sector, generosity toward others is an illustration of caring.

A donor in business is what?

Giving people are those that want to contribute to a cause and go out of their way to assist others. One must have "a willingness to help others attain their goals" in order to be really inventive and collaborative (Grant, 2013). Then there are what Grant refers to as "toxic takers" (Grant, 2013).

What does kindness in business mean?

Accordingly, if you are kind to your customers, business partners, and staff members — if you put in the extra effort, take the extra time, and do whatever you can — they are likely to return the favor.

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Define Producer Surplus Question One of these demand and supply diagrams holds within it the concept of economic efficiency for lawn mowers. The shaded triangular shape represents producer surplus, which demonstrates that the area between the market price and the segment of the supply curve below the equilibrium. The equilibrium price for lawn mowers is $700 and the equilibrium quantity is! 600 mowers. Choose the correct shaded triangular area that represents the area of producer surplus of lawn mowers. Select the correct answer below: O this shaded area represents producer surplus Supply Demand Price of Lawn Mowers (Hundreds $) Equilibrium (11,7) (11, 1) 10 15 20 Quantity of Lawn Mowers (Hundreds) O this shaded area represents producer surplus O this shaded area represents producer surplus Supply Demand (11, 12,5) Price of Lawn Mowers (Hundreds $) Equilibrium (11,7) 10 152 0 Quantity of Lawn Mowers (Hundreds) O this shaded area represents producer surplus Demand Supply Price of Lawn Mowers (Hundreds $) (10, 11) Equilibrium 10 15 20 Quantity of Lawn Mowers (Hundreds) O this shaded area represents producer surplus Demand Supply Price of Lawn Mowers (Hundreds $) Equilibrium 0 (0,1) 5 10 15 20 Quantity of Lawn Mowers (Hundreds)

Answers

This shaded area (11,7)(11,1)&(6,7) represents producer surplus, which demonstrates the area between the market price and the segment of the supply curve below the equilibrium.

What is Producer surplus?

The total amount a producer receives from producing a quantity of a good and selling it at the market price is known as producer surplus. The producer surplus is the sum of a producer's total revenue from sales minus the marginal cost of production.

By dividing total revenue by total marginal costs, a producer surplus can be calculated. It can also be determined by dividing the item's revenue by its marginal cost for each item sold. Producer surplus is the difference between total revenue and total variable cost, whereas economic profit is the difference between total revenue and total cost. The marginal cost for each item is the minimum price that can be accepted for each good. The fixed cost of production is the difference between economic profit and producer surplus.

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