Answer:
Option (B) is correct.
Explanation:
Unit of account:
There are some functions of money or we can say that characterstics of money:
(a) Medium of exchange
(b) Store of value
(c) Unit of account
(d) Standard of deferred payments
Sea shells are precious items but one cannot properly split divide those sea shells into small denominations like money does. Money is easily storable, people use as a medium of exchange and unit of account.
By unit of account we mean that we can easily measure the value of goods and service and many things in monetary terms but we cannot measure in terms of sea shells.
That's why sea shells unfit to act as money today.
Answer:
Total variable cost if 4 units were produced
= $33.75 x 4 units = $135
Total fixed cost = Total cost - Total variable cost
Total fixed cost = $175 -$135
Total fixed cost = $40
Average fixed cost = Total fixed cost/No of units
Average fixed cost = $40/10 units
Average fixed cost = $4
The correct answer is B
Explanation:
In this case, we need to calculate the total variable cost on the ground that 4 units were produced. Then, we will determine the total fixed cost by deducting the total variable cost from total cost. Finally, we will divide the total fixed cost by 10 units in order to obtain the average fixed cost.
Answer:
$1.49 per share
Explanation:
The calculation of diluted earnings per share is given below:-
Diluted shares outstanding= $200,000 + 12,000 × ($36 - $30) ÷ 36
= $200,000 + 12,000 × 6 ÷ 36
= $200,000 + 2,000
= $202,000
Diluted earnings per share = Net income ÷ Diluted shares outstanding
= $300,000 ÷ $202,000
= $1.49 per share
Therefore for computing the diluted earnings per share we simply divide the net income by diluted shares outstanding.
Answer:
$80.364.45
Explanation:
The lump sum that would make the employee indifferent can be determined by calculating the present value of the annuity
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 = $10,000
Cash flow in year 1 = $40,000
Cash flow in year 2 = $40,000
I = 9%
PV = $80,364.45
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Explanation:
Please have a look at the attached photo below
We know the formula of the price elasticity of demand:
<em>percentage change of quantity demanded/percentage change of price </em>
Given:
- P1: $2.65 => D1 (quantity sugar-free gummy bears) = 181 and O1 (quantity ordinary gummy bears) =485
- P2: $3.05=>D2 (quantity sugar-free gummy bears) = 157 and O2 (quantity ordinary gummy bears) =273
So:
= %ΔD / %ΔP
= (ΔD/ 
(D1+D2) ) / (ΔP/ (P1+P2))
= (181-175) / ( 157+181 ) : (3.05 -2.65)/ ( 3.05 +2.65 )
= 
: 
= 0.24
= %ΔO / %ΔP
= (ΔO/ (O1+O2) ) / (ΔP/ (P1+P2))
= (273-485) / ( 273+485) : (3.05 -2.65)/ ( 3.05 +2.65 )
= 
: =- 3.9
