Mayan Company had net income of $132,000. The company had 89,000 shares of common stock issued. The company had 9,000 shares of

Answer:

The best way to understand how outsourcing production to foreign countries work is to analyse a real world example. We can use GE and refrigerators for our example (it is a mature product). I just purchased a new refrigerator and noticed that it isn't built in the US anymore, but instead it's built in Mexico. I should be getting the new refrigerator tomorrow, but I've seen the same model on display on a retail in the past. I believe that it is well built and obviously I liked it, therefore, I decided to purchase it (besides getting a great deal online).

What made GE relocate the production of refrigerators to Mexico? I guess that the answer is lower production costs that offset any distribution costs, and no import tariffs. I really couldn't see any difference between this new refrigerator and my old refrigerator, except that the old had manual controls while the new one has digital controls.

This means that the quality of foreign goods can be as good as American goods. Since my family has always loved Hondas (Accords and Civics), I believe that Japanese cars are better, but since they are built in the US they do not fit this analysis.

Equal quality + lower prices = higher profit margin

That is the reason why American firms move their production facilities to other countries.

Of course, not all countries will have the same advantages that Mexico has, most imports pay tariffs. There is also a huge difference between purchasing something from Mexico (where most factories belong to American companies or provide goods to them) than purchasing something from China or some other country in Southern Asia. I like Hondas, and I could buy a Honda car built in Japan, but I wouldn't buy a Chinese car. And no matter which brand that Chinese car has, I will still think it's low quality and useless.

The decision depends on many factors, but ultimately, financial advantages (or disadvantages) will determine the outcome.

Answer:

(450.33)

Explanation:

Anthony has purchased a new shipment of 50 Bluetooth earbuds that he plans to sell for $99.99 each.

The manufacturer informs Anthony that each product will cost Anthony $52, but this does not include the cost of transportation.

Even with the extra transportation costs, Anthony is not worried. He believes he can sell all 50 earbuds by the end of the month.

After adding up inventory, transportation, storage, and other costs, he determines that his total costs will be $3,750.

However, by the end of the month Anthony has only sold 33 earbuds.

Therefore his profit is

Revenue = 33 earbuds x $99.99 each = $3,299.67

less: Total costs = .........................................<u>($3,750.00)</u>

Profit = ..............................................................     <u>(450.33)</u>

Answer:

1. A free weight station in a fitness room that is open to the public (common resource)

2. A large, beautiful fountain in a town square (public goods)

3. A new drum set for you to play in your friend's band (private good)

Explanation:

Before we look into the different types of goods, let us define the terms associated with goods:

Rival: A good is said to be rival, if its consumption by one consumer prevents simultaneous consumption by another consumer.

Excludable: An excludable good is one for which access is not provided by the owner or seller, to a consumer who has not paid for it or who has not met certain requirements for its use.

Now let us define the different types of goods:

a. Private goods: these goods are excludable and rival. This means that the owners can prevent certain individuals from using them and their use prevents simultaneous use by other consumers. These goods are usually limited in quantity. in our example, A new drum set for you to play in your friend's band meets these requirements. other examples include food, clothes et.

b. public good: these goods are non-excludable and non-rival. These goods can be used simultaneously by many individuals and restrictions to use are virtually absent on them.  A large, beautiful fountain in a town square meets these criteria. other examples include air, street lights etc.

c. common resource: These products are non-excludable (restriction to use is absent) and rival (use by an individual can prevent simultaneous use by others). if an individual is using A free weight station in a fitness room that is open to the public, other individuals will have to wait for their turn, even if they do not pay for it.

d. club good: these goods or services are excludable (paid for before use) but non rival (multiple consumers can use them simultaneously).  Examples include cable television, internet services, cinemas etc.

Answer:

Journal entry

Explanation:

The journal entry is as follows

Preferred Stock $55,000   (1,100 shares × $50)

Paid in capital Preferred Stock $15,400  {1,100 shares × ($64 - $50)}

          To Common Stock $22,000   (2,200 shares × $10)

         To Paid in capital common stock Additional $48,400

(Being the conversion of the preferred stock is recorded

Answer: Partnerships

Explanation:

A partnership is a legal form of business operation created between two or more individuals with a common goal, who are to share management and profits.

There are two recognized types of partnerships. The types of partnerships are general and limited partnerships.

In a general partnership, each of the partners controls the firm and assume full responsibility for the companies debts and profits.

In a limited partnership there is the presence of both the general and limited partners. The general partner owns and control the day to day running of the business and takes responsibility for the company, while the limited partners play the role of investors only; they posses little or no control over the firm and do not share the same liabilities as the general partners.