Buffalo corporation shipped $21,200 of merchandise on consignment to gooch company. buffalo paid freight costs of $1,900. gooch company paid $520 for local advertising, which is reimbursable from buffalo. by year-end, 61% of the merchandise had been sold for $21,400. gooch notified buffalo, retained a 10% commission, and remitted the cash due to buffalo.
prepare buffalo entry when the cash is received.

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.