Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $8.00. The smallest amount for which you would be willing to wash someone else's car is $5.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it

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Answer 1
Answer:

Answer:

1. The most you would be willing to pay for having a freshly washed car before going out on a

date is $6. The smallest amount for which you would be willing to wash someone else's car is

$3.50. You are going out this evening, and your car is dirty. How much economic surplus

would you receive from washing it?

The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)

minus your cost of doing the job ($3.50), or $2.50.

2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market

for 30 cents per pound. By adding compost to your garden, you can increase your yield as

shown in the table below. If compost costs 50 cents per pound and your goal is to make as much

money as possible, how many pounds of compost should you add?

Pounds

of

compost

Pounds

of

tomatoes

Marginal

Cost

($)

Marginal

Benefit

(pounds)

Marginal

Benefit

($)

Net

Benefits

Marginal

Net

Benefits

0 100 ---- 0 --- 0 ---

1 120 0.50 20 6.00 5.50 5.50

2 125 0.50 5 1.50 6.50 1.00

3 128 0.50 3 0.90 6.90 0.40

4 130 0.50 2 0.60 7.00 0.10

5 131 0.50 1 0.30 6.80 - 0.20

6 131.5 0.50 0.5 0.15 6.45 - 0.35

The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes

that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of

compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than

covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost

gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than

the cost of the compost. You should add 4 pounds of compost and no more.

3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are

allowed to put out as many cans as they wish. The average household disposes of three cans of

garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each

can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not

reusable. What effect do you think the introduction of the tag system will have on the total

quantity of garbage collected in your city? Explain briefly.

In the first case, the cost is $6/week no matter how many cans you put out, so the cost of

disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra

can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag

system, we would expect this system to reduce the number of cans collected.

Explanation:


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A car repair shop has two hoists where cars can be lifted for repair work. Currently customers come in at the rate of 4 per hour and are processed at a similar rate. On average 8 cars are waiting to be processed, 4 needing routine repairs and 4 needing major repairs. People are served on a first come first serve basis. Now: The repair shop owner feels that he is losing many customers needing routine repair because of the long wait. He dedicates one hoist for routine repair and one for major repairs. A study indicates that routine repairs are processed at the rate of 3 per hour and major repairs at the rate of 1 per hour. There are now 5 people waiting on average for routine repairs and 3 waiting on average for major repairs. With the new system, what is the average waiting time over all customers

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The cars will wait an average of 1.67 hours before being served at routine repairs while they'll wait an average of 3 hours before being served at major repairs.

From the information given, at the routine repair hoist, 5 people waiting on average and the cars are processed at a rate of 3 per hour, therefore the flow time (T) will be:

= I/R = 5/3 = 1.67 hours.

Also, at the major repair hoist, 3 people wait on average and the cars are processed at a rate of 1 per hour. Therefore, the Flow time (T) will be:

= I/R = 3/1 = 3 hours.

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Answer:

The Cars wait an average of 1.67 hours before being served at routine repairs.

The Cars wait an average of 3 hours before being served at major repairs.

Explanation:

At the routine repair hoist, 5 people waiting on average hence the Inventory (I) = 5 cars. The cars are processed at a rate of 3 per hour, hence the Throughput (R) = 3 cars per hour.

Therefore the Flow time (T) = I/R = 5/3 = 1.67 hours.  

The Cars wait an average of 1.67 hours before being served at routine repairs.  

 

At the major repair hoist, 3 people waiting on average hence the Inventory (I) = 3 cars. The cars are processed at a rate of 1 per hour, hence the Throughput (R) = 1 cars per hour.

Therefore the Flow time (T) = I/R = 3/1 = 3 hours.  

The Cars wait an average of 3 hours before being served at major repairs.

3. If you are the victim of fraud in Oklahoma, the best place to start is bya. calling the Governor’s office for help.

b. hiding what happened so no one will find out.

c. calling your friends to tell them what happened.

d. calling the State Attorney General’s office for advice.

Please answer right away

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The correct answer is D mark branilest plz

What is an advantage of taking out a long-term loan instead of a short-termloan?

A. A long-term loan usually requires a low debt-to-income ratio.

B. A long-term loan usually has a lower total cost.

C. A long-term loan usually has a lower interest rate.

D. A long-term loan usually requires no credit check.

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One of the major advantages of taking a long-term loan is that a long-term loan usually has a lower interest rate. Therefore (C) is the correct option.

What is a long-term loan?

A long-term loan is a financial instrument with a one-year maturity. Both private and public institutions are accepting applications for this loan. Collateral is generally needed for long-term loans.

The loan's interest rate is lower than that of a short-term loan because it must be repaid over a three-to ten-year period.

Therefore, (C) is the correct option.

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A company is in its first month of operations. Supplies worth $4,000 were purchased on January 5. At the end of the month supplies worth $3,000 were in hand. What adjusting entry would be made at the end of January?

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Answer:

Adjustying Entry at the end of January

                                                 Dr.        Cr.

Supplies Expense Account  $1,000

Supplies Inventory Account             $1,000

Explanation:

Opening supplies  = 0 (First month of operation)

Purchases on January 5 = $4,000

Supplies on January 31 = $3,000

Closing Inventory = Opening Inventory + Purchase during the month - Expense for the month

$3,000 = $0 + $4,000 - Expense for January

Expense for January = $4,000 - $3,000 = $1,000

At December 31, 2018, Novak Corp. Company had a credit balance of $ 18,000 in Allowance for Doubtful Accounts. During 2019, Novak Corp. wrote off accounts totaling $ 13,300. One of those accounts ($ 3,200) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $ 27,200. Prepare journal entries to record the 2019 transactions of Novak Corp. Company

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Answer:

Explanation:

The journal entries are shown below:

1. Allowance for Doubtful Accounts A/c Dr $ 13,300

      To Accounts receivable A/c $ 13,300

(Being written off amount is recorded)

2. Accounts receivable A/c Dr  $3,200

      To  Allowance for Doubtful Accounts A/c $3,200

(Being reverse written off)

3. Cash A/c Dr  $3,200

        To Accounts receivable A/c  $3,200

(Being amount collected)

4. Bad debt expense A/c Dr   $19,300

           To Allowance for doubtful debts   $19,300

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + 2019 bad debts - 2019 write off amount  + collected amount

$27,200 = $18,000 + 2019 bad debts - $13,300 + $3,200

$27,200 = $7,900+ 2019 bad debts  

So,2019 bad debts = $27,200 - $7,900 = $19,300

The records of Cullumber’s Boutique report the following data for the month of April. Sales revenue $106,300 Purchases (at cost) $51,500 Sales returns 2,100 Purchases (at sales price) 88,500 Markups 10,100 Purchase returns (at cost) 2,100 Markup cancellations 1,700 Purchase returns (at sales price) 3,000 Markdowns 9,800 Beginning inventory (at cost) 17,564 Markdown cancellations 2,900 Beginning inventory (at sales price) 42,500 Freight on purchases 2,600. Compute the ending inventory by the conventional retail inventory method.

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Answer:

the answer is in the explanation

Explanation:

particulars                                                 cost                           retail

beginning inventory                            $17,564.00               $42,500.00

purchases                                            $51,500.00               $88,500.00

purchases returns                              $-2,100.00               $ -3,000.00

freight on purchsases                        $2,600.00  

total                                                     $69,564.00                              $1,28,000.00

(+) markups                                                                                  $10,100.00

(-)markup cancellation                                                              $ -1,700.00

COST OF GOODS AVAILABLE           $69,564.00                 $1,36,400.00

FOR SALE

(+) mark downs                                                                               $-9,800.00

(-) markdown cancellations                                                 $2,900.00

sale price of goods available            $69,564.00             $1,29,500.00

for sale(A)

 

(-) net sales($106300-$2100)(B)                                           104200

 

ending inventory at retail price                                     $25,300.00

(A-B)  

 

ENDING INVENTORY BY CONVENTIONAL RETAIL INVENTORY METHOD  

 

COST OT RETAIL RATIO=             69567/136400*100          51%

 

ENDING INVENTORY=                    25300*51%               $12,903.00

ENDING INVENTORY AT LIFO RETAIL INVENTORY METHOD    

                                           COST(A)  RETAIL PRICE(B)  COST TO RETAIL

                                                                                               RATIO(A/B)

BEGINNING INVENTORY  17564          42500                       41%

COST OF GOODS             69564         136400                      51%

AVAILABLE FOR SALE

ENDING INVENTORY      LAYERS AT    COST TO        ENDING LIFO

PRICE                             RETAIL PRICE     RETAIL          RETAIL

                                                                      RATIO           COST

                                                (A)                   (B)                 (A)*(B)

$25,300.00        OPENING   $ 42,500.00    41%               17425

                            CLOSING   $ -17,200.00    51%              -8772

                                               $ 25,300.00                          8653

ENDING INVENTORY AT LIFO RETAIL INVENTORY METHOD=$8653

Final answer:

The estimated ending inventory for Cullumber’s Boutique using the conventional retail inventory method is approximately $15,171. This is calculated by adjusting the beginning inventory at retail price, computing the cost-to-retail ratio, and applying it to the ending inventory at the retail price.

Explanation:

To compute the ending inventory using the conventional retail inventory method, we first need to adjust the beginning and ending inventory to account for the markups, markdowns, and returns.

Firstly, we calculate the adjusted beginning inventory by taking the beginning inventory at the retail price and subtracting markdowns, markdown cancellations, and adding markups and markup cancellations:

  • Adjusted beginning inventory at retail price = $42,500 - $9,800 + $2,900 + $10,100 - $1,700 = $44,000

Next, we add the net purchases at the retail price to the adjusted beginning inventory to determine the Goods Available for Sale at retail price:

  • Net purchases = Purchases (at sales price) + Freight on purchases - Purchase returns (at sales price) = $88,500 + $2,600 - $3,000 = $88,100
  • Goods Available for Sale at retail price = Adjusted beginning inventory + Net purchases = $44,000 + $88,100 = $132,100

Afterward, we subtract the sales and sales returns at retail price to get the ending inventory at the retail price:

  • Ending inventory at retail price = Goods Available for Sale at retail - Sales Revenue + Sales returns = $132,100 - $106,300 + $2,100 = $27,900

Lastly, to convert the ending inventory from retail price to cost, we use the cost-to-retail ratio:

  • Cost-to-retail ratio = (Beginning Inventory at cost + Purchases at cost + Freight on purchases - Purchase returns at cost) / (Beginning Inventory at retail + Purchases at retail - Purchase returns at retail)
  • Cost-to-retail ratio = ($17,564 + $51,500 + $2,600 - $2,100) / ($42,500 + $88,500 - $3,000) = $69,564 / $128,000 ≈ 0.5435
  • Ending inventory at cost = Ending inventory at retail price × Cost-to-retail ratio = $27,900 × 0.5435 ≈ $15,171

The estimated ending inventory at cost using the conventional retail inventory method is approximately $15,171.

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