Bing Corporation acquired two inventory items at a lump-sum cost of $120,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Bing sells 1,000 units of LF, what amount of gross profit should it recognize

$7,500

Explanation:

3,000 units of LF normally costs:

= 3,000 * 30

= $90,000

7,000 units of 1B normally costs:

= 7,000 * 10

= $70,000

Together they cost:

= 90,000 + 70,000

= $160,000

Use this to calculate the proportional cost of LF from the lump sum:

= 90,000 / 160,000 * 120,000

= $67,500

Cost per unit of LF purchased at lump sum cost:

= 67,500 / 3,000 units

= $22.50

Gross profit:

= (Selling price - Cost per unit) * 1,000 units

= (30 - 22.50) * 1,000

= $7,500

answer trochanter; i believe this is correct, plz check first, good luck;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.