Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis
Salaries $ 56,000 Number of employees
Depreciation 35,000 Cost of goods sold
Advertising 69,000 Net sales

Item Drilling Grinding Total
Number of employees 1,600 2,400 4,000
Net sales $ 392,000 $ 588,000 $ 980,000
Cost of goods sold $ 144,400 $ 235,600 $ 380,000

The amount of the advertising cost that should be allocated to Drilling for the current period is:

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a) both were commissioned explorers

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.

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