Answer:
Increase profits by $40,000
Explanation:
The computation of the net impact of stopping production of love seats is shown below:
= Contribution margin × increased percentage - segment margin
= $900,000 × 10% - $50,000
= $90,000 - $50,000
= $40,000
Since the amount comes in positive which means that the profits is increased by $40,000
All other information which is given is not relevant. Hence, ignored it
The cumulative budgeted cost at the end of week 6 is $100,000. The answer in this question whose are amounts are in thousand of dollars is $100,000. So, the cumulative budgeted cost at the end of the week 6 is $100,000.Cumulative budgeted cost or acronym of CBC is the amount that is budgeted in order to accomplish the work that was scheduled.
Answer:
$(94,179)
Explanation:
Particulars Year 0 Year 1 Year 2
Cash flows ($1,500,000) A$1,000,000 A$2,000,000
DCF 14% 1 0.8772 0.7695
Present Values 1500,000 A$877,200 A$ 1,538,935
Conversion 1 0.55 0.60
P V in US$ (1,500,000) 482,460 923,361
Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)
Answer and Explanation:
The transactions 3 6 and 8 represents that the expenses are incurred which results in increased and expenses and the transaction 4 and 5 shows that there is an increased in revenue
The journal entry is shown below:
For transaction 3
Rent expense
To Cash
(Being the rent expense is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 6
Electricity expenses Dr
To Cash
(Being the energy usage is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 8
Advertising expense Dr
To Account payable
(Being the advertising expense is recorded)
As the expense has debit balance so it would be increased
For transaction 4
Account receivable Dr
To Service revenue
(Being the service is provided)
As the revenue has credit balance so it would be increased
For transaction 5
Cash Dr
To Service revenue
(Being the service provided is recorded)
As the revenue has credit balance so it would be increased
The attachment is provided for better understanding
The other transactions represent the assets, liabilities and stockholder equity
Answer:
a. Do these preferences exhibit a diminishing marginal rate of substitution?
- no, because the consumer is actually purchasing a higher amount of goods, the only difference is that they are paying a lower price.
Assume that this consumer has $24 of income to spend on sugar, and the price of store-brand sugar is $1 per pound and the price of producer-brand sugar is $3 per pound.
- The consumer will purchase 24 pounds of price of store sugar simply because the price is much lower, not because he/she wants to consume less. Actually a lower price might result in an increase of consumption.
b. How much of each type of sugar will be purchased?
- If the consumer is willing to spend the whole $24 on sugar, he/she will purchase 24 pounds of store brand sugar. The alternative is to buy 8 pounds of producer brand sugar, and that is not a good deal.
c. How would your answer change if the price of store-brand sugar was $2 per pound and the price of producer-brand sugar was $3 per pound?
- The consumer would purchase 12 pounds of store brand sugar instead of 24, but he/she will still not purchase producer brand sugar since the difference in price is still too high. Remember that consumers view both types of sugar as perfect substitutes, so they will purchase the brand with the lower price.
