Cannondale company purchased an electric wax melter on april 30, 2020, by trading in its old gas model and paying the balance in cash. the following data relate to the purchase. list price of new melter $15,800 cash paid 10,000 cost of old melter (5-year life, $700 salvage value) 11,200 accumulated depreciation-old melter (straight-line) 6,300 secondhand fair value of old melter 5,200 prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. cannondale’s fiscal year ends on december 31, and depreciation has been recorded through december 31, 2019.

Adding a complementary product to what is currently being produced is a demand management strategy used when: a. capacity exceeds demand for a product that has stable demand. b. price increases have failed to bring about demand management. c. demand exceeds capacity. d. demand exceeds 100 percent. e. the existing product has seasonal or cyclical demand.

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.

Depasquale corporation is working on its direct labor budget for the next two months. each unit of output requires 0.61 direct labor-hours. the direct labor rate is $8.70 per direct labor-hour. the production budget calls for producing 6,700 units in may and 7,100 units in june. if the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?