You are a producer of tortillas. In the market for tortillas, two events happen simultaneously: there is a decrease in the price of corn used to make your tortillas, and there are headlines that promote the link between eating tortillas and reducing heart attacks. Which of the following is a consequence?
A. There is a decrease in the price of tortillas and a decrease in the quantity of tortillas.
B. There is a decrease in the price of tortillas and an increase in the quantity of tortillas.
C. There is an increase in the price of tortillas and a decrease in the quantity of tortillas.
D. We know the quantity will increase, but we don't know what will happen to the price unless we know the size of the shifts.

Swain company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. the company's beginning balance in retained earnings is $65,000. it sells one product for $170 per unit and it generated total sales during the period of $603,500 while incurring selling and administrative expenses of $54,500. swain company does not have any variable manufacturing overhead costs and its standard cost card for its only product is as follows:

Mandalay hotel bases its budgets on guest-days. the hotel's static budget for august appears below: budgeted number of guest-days 4,300 budgeted variable costs: supplies (@$9.60 per guest-day) $ 41,280 laundry (@$9.40 per guest-day) 40,420 total variable cost 81,700 budgeted fixed costs: wages and salaries 57,190 occupancy costs 52,030 total fixed cost 109,220 total cost $ 190,920 the total cost at the activity level of 5,200 guest-days per month should be:

On january 1, 2018, wetick optometrists leased diagnostic equipment from southern corp. which had purchased the equipment at a cost of $2,256,342. the lease agreement specifies six annual payments of $490,000 beginning january 1, 2018, the beginning of the lease, and at each december 31 thereafter through 2022. the six-year lease term ending december 31, 2023 (a year after the final payment), is equal to the estimated useful life of the equipment. the contract specifies that lease payments for each year will increase on the basis of the increase in the consumer price index for the year just ended. thus, the first payment will be $490,000, and the second and subsequent payments might be different. the cpi at the beginning of the lease is 120. southern routinely acquires diagnostic equipment for lease to other firms. the interest rate in these financing arrangements is 12%. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) prepare the appropriate journal entries for wetick and southern to record the lease at its beginning.