In this situation, the company should Enter a debit of $1.85 in the Cash Over and Short account.
By doing this, the amount of difference will be covered on the adjustment that made on the account and the calculation for the net profit and cash flows will be back to the correct value,
Answer:
They should continue production to finished bookcases.
Explanation:
Giving the following information:
Pine Street Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70. Variable finishing costs are expected to be $6 per unit with no increase in fixed costs.
Unfinished bookcases profit= 62 - 36 - 10= $16
Finished bookcases profit= 70 - 46 - 6= $18
They should continue production to finished bookcases.
Frictional unemployment occurs because in a world of imperfect information, it takes time for people to find jobs.
<h3>
What is Frictional unemployment?</h3>
Transitions in employment that are voluntary within an economy lead to frictional unemployment. Even in an expanding, stable economy, frictional unemployment is a given. Frictional unemployment refers to workers who decide to leave their current jobs in search of new ones and people who are just starting out in the workforce. It excludes employees who hold onto their existing position until they find a new one because, presumably, they are never unemployed.
In the economy, there is always some frictional unemployment. It is a portion of natural unemployment, which is the lowest unemployment rate in an economy as a result of economic factors and labor movement, and it affects the overall employment picture.
The number of workers who are involuntarily out of work indicates both natural unemployment and the number of people who have been replaced by technology or lack of expertise.
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