BUSINESS HIGH SCHOOL

Joseph is consuming three units of pizza and two units of soda. The price of pizza is $5 and the price of soda is $1. If he is consuming the optimal consumption bundle and his marginal utility of the third unit of pizza is 50, his marginal utility of the second soda is:A. 50.
B. 5.C. impossible to determine unless you know Joseph's income.
D. 10.

Answers

Answer 1
Answer:

Answer:

D) 10

Explanation:

Joseph is consuming pizzas at $5 per slice and sodas as $1 per soda.

If the marginal utility of the third slice is 50, then the utils per dollar = 50 / $5 = 10 utils per dollar.

Since the soda costs $1, and it provides the same utils per dollar as the pizza, then the marginal utility = $1 x 10 utils per dollar = 10 utils

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Gibson company began august with 200 units of product br having a unit cost of $8 in inventory. relevant information is listed as follows: if gibson company uses the average cost method inventory cost flow assumption, what amount will it report as gross profit for august?
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Which loan type requires you to make loan payments while you're attending school

Answers

This type of a student loan is called an unsubsidized student loan. In these loans, you are responsible of paying the loan at all times, as well as the interest rates.

Vertical space can be utilized to gain more storage space?
True or False

Answers

True. Vertical space can be used for more storage space, however in most storage units only fifty percent of the total storage is not utilized. Using vertical space will increase the storage space

Answer:

TRUE

Explanation:

The space of an environment consists not only of horizontal space, but also of vertical space, which can be used in many normally creative ways. For example, in a kitchen you can put a pipe on the wall and use hooks to hang pans instead of storing them in a cupboard. This is vertical utilization. Thus, it is true that the vertical use of space serves to gain more space.

During 2016, P Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts:2014 $120,000 understated
2015 150,000 overstated

P uses the periodic inventory system to ascertain year-end quantities that are converted to dollar amounts using the FIFO cost method. Prior to any adjustments for these errors and ignoring income taxes, P's retained earnings at January 1, 2016, would be:

Answers

Answer:

$150,000 overstated

Explanation:

Given

2014 $120,000 understated

2015 150,000 overstated

Using the FIFO cost method, the retained earnings would be $150,000 overstated.

The understated earnings of $120,000 would affect the earnings of 2014 cost of goods sold to be entered as overstated. At the same time, this would understate the net income and the retained earnings.

Having mentioned the above, this would also affect the beginning Inventory of 2015 cost of goods sold to be understated. By the same virtue, this would overstate the net income and the retained earnings by the same amount the net income and retained earnings is understated, effectively correcting the balance of the retained earnings.

Lastly, The $150,000 overstated ending inventory would then affect the 2015 cost of goods sold to beunderstated; this would overstate the Net Income and Retained Earnings.

Answer:

P's retained earnings are overstated by $150,000.

Explanation:

First of all, the $120,000 inventory understatement would cause the 2014 cost of goods sold to be overstated. In other words, profits and consequently retained earnings were understated because COGS were too high.

Because the 2014 ending inventory was understated, the beginning inventory in 2015 would be understated also. Since the initial inventory was understated, the COGS would be too low during 2015, which would end up correcting the previous error during 2015 (both profits and retained earnings should level up).

By the end of 2015, an error happened again and this time the ending inventory was overstated by $150,000, which understates COGS and overstates profits (and retained earnings). This should also be corrected during 2016, but since we are asked about January 1, 2016, then the correction hasn't occurred yet.

The problem with a periodic inventory system is that COGS is determined at the end of the accounting period, unlike a perpetual inventory system that records COGS immediately. Any variation in final inventory will change profits and directly affect retained earnings.

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart and set up its own Web site to sell its books. This change in channel organization is called ________.

Answers

Answer: Disintermediation

Explanation:

Disintermediation is the withdrawal of funds from an intermediary financial institutions e.g savings and loan associations or banks in order to invest them directly. It is the reduction in using intermediaries between the producers and consumers.

From the question, Erudite stopped using an intermediary and started selling its books online. The main advantage of disintermediation is that the consumer saves money.

Surfer sam company produced 4,000 units of product that required 2.5 standard hours per unit. the standard fixed overhead cost per unit is $0.80 per hour at 10,500 hours, which is 100% of normal capacity. determine the fixed factory overhead volume variance.

Answers

The fixed factory overhead volume variance is $400 (unfavorable)

solution

Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead

Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000

Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000

and

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)

Fixed Overhead Volume Variance = 8000- 8400 = 400 (unfavorable)

11. Describe a product, and then give an example of a time when the demand for this product might be high and the demand for this product might be low. (2-4 sentences.)

Answers

A good example is ham. On normal days, ham are a couple of dollars cheaper because there is no occasion. But during the holidays, the price of the ham increases due to its demand by the customers.
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