Answer:
Josefina is not maximizing her profits since she is making a loss of $0.25.
Explanation:
The marginal revenue is the total amount of revenue received from selling an additional unit of product while the marginal cost is the total cost incurred for producing an additional unit of product. The marginal cost and revenue can be compared to determine if producing and selling an additional unit is profitable or will cause a loss.
The profit/loss can be expressed as;
P/L=R-C
where;
P=profit
L=loss
R=total marginal revenue
C=total marginal cost
In our case;
P/L=unknown
R=marginal revenue per unit×number of units=1.50×1=$1.50
C=marginal cost per unit×number of units=$1.75×1=$1.75
replacing;
P/L=1.50-1.75=-$0.25
Since the marginal cost is greater than the marginal revenue, we can conclude that Josefina is making a loss of $0.25
The existence of an optional entity indicates that its minimum cardinality is zero. The following are the types of the optional entities.
• Super type (optional) is the generalized fundamental entity that shares its attributes and associations with this fundamental entity. This can be the fundamental entity originating from the super type business term that this fundamental entity originates from.
• Sub types (optional) is the fundamental entities that inherit the attributes and associations from this fundamental entity.
• Attributes (optional) is the attributes that describe this fundamental entity. When attributes are united crossways multiple important entities, consider defining a super type fundamental entity to hold the shared attributes and define them only once. These attributes are based on the secondary business terms related to the primary business term that this fundamental entity originates from, and on the description of that primary business term.
• Relationships (optional) is the relationships to other entities. An important unit can be relative of one or more relationships with an associative unit. A fundamental unit can also be right associated to another fundamental entity as a child or a parent when the cardinality is at most a one to many. These relationships are founded on the related main relations to the business term that this fundamental entity creates from.
Answer:
Gross Margin 1,465,600
Explanation:
gross margin: sales - COGS
sales 6,400 units at 684 = 4,377,600
cost of goods sold 455 = (2,912,000)
Gross Margin 1,465,600
<u>The selling and administrative cost are cost of the period,</u> are not capitalized through inventory.
Answer:
(A) ($10,000)
Explanation:
This is the actual situation with the product A on production.
500.000,00 Sales of the product total
-340.000,00 variable expenses total
-210.000,00 Fixed expenses charged to the product total
-50.000,00 Income
If the product A is dropped the company not loose anymore the ($50,000) of income but the company must pay the $60,000 of fixed expenses, so the company will have a disadvantage of ($10,000).
Answer:
The amount which is to be debited to the account of Patents is $35,000
Explanation:
Patent is the right which is given to an investor to stop other people or an individual using or making their invention.
So, company incurred $150,000 for the research and development costs in order to develop the patent and $35,000 is paid for legal fees.
Therefore, the amount of $35,000, is the aggregate amount of patent as it is paid in obtaining the patent.
