You are a general manager of a firm that manufactures personal computers. due to a soft economy, demand for pcs has dropped 50 percent from the previous year. the sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new pcs. according to the sales manager, the client is willing to pay $650 each for 10,000 new pcs. your production line is currently idle, so you can easily produce the 10,000 units. the accounting department has provided you with the following information about unit (or average) cost of producing three potential quantities of pcs. based on the information provided, what is your recommendation? explain.

10,000 pcs 15,000 pcs 20,000 pcs

materials (pc components) $500 $500 $500
depreciation $200 $150 $100
labor $100 $100 $100
$800 $750 $700

The balance sheet contains the following major sections: current assets long-term investments property, plant, and equipment intangible assets other assets current liabilities long-term liabilities contributed capital retained earnings accumulated other comprehensive income required: the following is a list of accounts. using the letters a through j, indicate in which section of the balance sheet each of the accounts would be classified. if an account does not belong under one of the sections listed, select "not under any of the choices" from the classification drop down box. for all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no". account classification contra or deducted (yes/no) 1. cash 2. bonds payable (due in 8 years) 3. machinery 4. deficit 5. unexpired insurance 6. franchise (net) 7. fund to retire preferred stock 8. current portion of mortgage payable 9. accumulated depreciation 10. copyrights 11. investment in held-to-maturity bonds 12. allowance for doubtful accounts 13. notes receivable (due in 3 years) 14. property taxes payable 15. deferred taxes payable 16. additional paid-in capital on preferred stock 17. premium on bonds payable (due in 8 years) 18. work in process 19. common stock, $1 par 20. land 21. treasury stock (at cost) 22. unrealized increase in value of available-for-sale securities

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise