Same average cost with different quantities? suppose there are two pencil producers with identical production facilities—identical factories and equipment. the firms pay the same wages and pay the same prices for materials. sam has a small workforce and produces 500 pencils per minute; marian has a medium-size workforce and produces 1,000 pencils per minute. the two firms have the same average total cost of 5 cents per pencil. suppose you build a production facility identical to the ones used by the other firms and hire enough workers and buy enough materials to produce 1,500 pencils per minute. you expect your average cost to begreater than5 cents per pencil.

Which is not an example of a cyclical company? a) airlines b) hotel industry c) medical d) theme parks

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.

Double corporation acquired all of the common stock of simple company for