Nash Company sold 10,800 Super-Spreaders on December 31, 2020, at a total price of $1,015,200, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $561,600. The assurance warranties extend for a 2-year period and are estimated to cost $43,400. Nash also sold extended warranties (service-type warranties) related to 2,100 spreaders for 2 years beyond the 2-year period for $12,600. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash.

     Amount reported in Income

Particulars                           Amount

Sales revenue                   $1,015,200

Warranty expenses           $43,400

 Amount reported on balance sheet

Particulars                                 Amount

Unearned service revenue      $12,600

Cash ($1,015,200 + $12,600)   $1,016,460

Warranty liability                       $43,400

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.