Answer:
a. Contribution margin ratio = Contribution per unit/selling price
= $18/$$5
= 0.4 = 40%
b. Contribution per unit = Selling price - Variable cost per unit
= $45 - $27
= $18
c. Income from operations $
Total contribution ($18 x 160,000 units) 2,880,000
Less: Fixed cost 975,000
Income from operations 1,905,000
Explanation:
Contribution margin ratio is the ratio of contribution per unit to selling price
Contribution per unit is the excess of selling price over variable cost per unit
Income from operation is the excess of total contribution over fixed cost
Answer:
The correct answer is letter "A": total value from trade in a market.
Explanation:
Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.
Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.
Social surplus is the combination of consumer surplus and producer surplus, taking into account the price that consumers are willing to pay based on their preferences, and the price that producers are willing to sell their product at, based on their costs.
The question asked here is: Social surplus is the ____________. The correct answer to this question is that social surplus is the sum of consumer surplus and producer surplus. This concept falls under economic principles. Consumer surplus is the difference between the price that consumers are willing to pay based on their preferences, and the actual market equilibrium price. On the other hand, producer surplus is the gap between the price at which producers are willing to sell a product, based on their costs, and the market equilibrium price. Combining both these surpluses gives the social surplus.
#SPJ3
2. Reduce variable costs to 59% of sales.
Compute the net income to be earned under each alternative.
1. Net Income
$enter a dollar amount
2. Net Income
$enter a dollar amount
Which course of action will produce the higher net income? select an option
Answer:
Results are below.
Explanation:
Giving the following information:
Sales $382,500 (units 5,100 $75 per unit)
variable costs $245,000 (48.04 per unit)
fixed costs $98,000.
Option 1:
Increase selling price by 16%.
New selling price= 75*1.16= 87
Sales= 5,100*87= 443,700
variable costs= (245,000)
fixed costs= (98,000)
Net income= 100,700
2. Reduce variable costs to 59% of sales.
Contribution margin= (382,500*0.41)= 156,825
fixed costs= (98,000)
Net income= 58,825
The most profitable option is the first one.
She can find a more comfortable chair.
She can have more resources available.
She can remove any possible distractions.
She can choose an area with more light.
In this case, Alicia makes her studying environment more effective as she can remove any possible distractions. The correct option is c.
Studying is crucial for personal skill development in addition to educational advancement. Your confidence, skill, and self-esteem can all be increased by having effective study techniques. Additionally, it aids in lowering tension and worry related to tests and deadlines.
Take anything out of your study area that is not necessary for studying. To lessen auditory distractions, wear noise-canceling headphones, listen to white noise, or try utilizing earplugs. Eliminate electronic irritants. Put your phone in silent mode and away from your line of sight.
Therefore, the correct option is c. She can remove any possible distractions.
To learn more about studying, refer to the link:
#SPJ6
Answer:
C
Explanation:
edgen 2020
Answer:
A. consumer surplus that is generated from the introduction of a new product.
Explanation:
The product-variety externality is defined as consumer get the surplus that is generated from the introduction of a new product and entry of a new firm conveys a positive externality on consumers. It arises as new firms offer products that differ from those of the existing firms, however, it does not happen under perfect competition. Competitive market lead to efficient outcomes, unless there are externalities.
Answer:
The Journal entries are as follows:
(i) On may 1,
Investment - Walker Co. A/c Dr. $153,600
To cash $153,600
(To record the initial acquisition of the bonds)
(ii) On November 1,
Cash A/c( $153,600 × 8% × 6/12) Dr. $6,144
To Interest revenue $6,144
(To record the semiannual interest received)
(iii) On November 1,
Cash A/c ($43,200 × 98%) Dr. $30,240
Loss on sale of investment A/c Dr. $12,960
To Investment - Walker Co. $43,200
(To record the sale of the bonds)
(iv) On December 31,
Interest receivable A/c Dr. $1,300
To Interest revenue $1,300
(To record the accrual of $1,300 interest)
a. Prepare the entry to correct the prior year's depreciation, if necessary.
b. Prepare the entry to record depreciation for 2021.
Answer:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
b. Prepare the entry to record depreciation for 2021.
Explanation:
purchase cost of machinery $66,000
estimated useful life 8 years
estimated salvage value $4,400
depreciation has been recorded using the previous basis during the first 5 years, but now the estimated useful life was extended to 10 years and the salvage value = $4,950
depreciation expense per year (during first 5 years) = ($66,000 - $4,400) / 8 = $7,700 per year
accumulated depreciation up to year 5 = $7,700 x 5 = $38,500
the carrying value of the asset on January 1, 2021 = $66,000 - $38,500 = $27,500
the new depreciation expense per year = ($27,500 - $4,950) / 5 = $4,510
depreciation expense for 2021:
Dr Depreciation expense 4,510
Cr Accumulated depreciation - machinery 4,510