5/7/2016 8:08:45 AM
Consider the two case situations illustrated in the assignment. By considering the information provided; respond to the following in accordance with applying the proper concepts and theories.
Q1.
a) Complete the payroll sheet and prepare the necessary entry to record the payment of payroll.
b) Prepare the entry to record the payroll tax expenditures of Otis Import Company.
c) Prepare the entry to record the payment of payroll liabilities made. Suppose that the company pays all payroll liabilities at the end of every month.
Q2.
a) Determine ATC per unit for every level of output listed in table?
b) Is this a decreasing-cost industry?
c) Assume that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles. Illustrate how many firms will there be in this industry?