It is to be noted that the demand for sandwiches and ice cream cones consumed after the price of ice cream cones rises to $2 a piece will both reduce (all things being equal).
<h3>Why would the demand for both items reduce?</h3>
The demand for both goods will both come down because they are complementary or joint demand goods.
A pair of goods are termed "joint demand" when both must or usually is consumed with the other.
Recall that (where all things are equal) demand will decrease as price increases.
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Products whose demand rises when another product's price increases are called: Substitute goods
Answer:
entire initial investment will not be recovered.
Explanation:
Payback period is one of the methods used in capital budgeting.
Payback period calculates how long it takes for the amount invested in a project to be recovered from its cummulative cash flows.
For example, if a project costs $360 and the cash flow each year for its 6 years useful life is $120. The amount invested would be gotten back from the cummulative cash flow in 3 years.
But if a project costs $360 and the cash flow each year for its 2 years useful life is $120. The amount invested would never be gotten back the cummulative cash flow. Therefore, the entire investment amount will never be entirely recovered.
The project will always not be profitable
I hope my answer helps you.
<u>Solution and Explanation:</u>
<u>Journal entry to record the purchase the bags of insultaion.</u>
Date Particulars Debit Credit
Inventory $6875
accounts payable $6875
(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)
<u>entry to record the payment for shipping</u>
Inventory $320
cash $320
( paid shipping charges for bags to warehouse)
<u>entry for return of the defective bags</u>
accounts payable $275
Inventory $275
( returned defective bags to glassco Inc)
<u>To record the payment for the bags kept by compass.</u>
Accounts payable $6600
cash $6600
( payment for remaining bags to Glassco Inc., )
Answer:
The words aren't bolded, so it is difficult to know what kind of phrase and it is difficult to help you.
Explanation:
