Answer:
Check the explanation
Explanation:
Going by the question that the proportion of milk and strawberry for milk shake is 1:5.
If amount of milk is to be X1 that means the quantity of strawberry (X2) will be 5×X1, i.e., X2=5X1... Equation 1
And in addition, the milk and strawberry are complementary consumables as strawberry is of no use without milk and vice versa.
Budget equation will be as follows:
P1×X1+P2×5X1=M.... Equation 2
Given M=200, P1=15 & P2=1
Putting values in Equation 2
15×X1+1×5X1=200
X1=10 & X2=50(from equation 1)
Answer a)
With change in P1 from 15 to 5
Again putting values in Equation 2
5×X1+1×5X1=200
X1=20 & X2=100.
The total change in the demand of milk will increase from 10 units to 20 units.
Answer b)
Strawberry and milk are complementary goods here for that reason there would be no effect on substitution.
Answer c)
Since there will be no effect on substitution, total effect will be equal to income effect.
Answer:25,000 in 12 years = 25,000*(1.09)^12= $70,316
Value of $7,500 deposits in 6 years
Use financial calculator and input these values
N=6
PV=0
PMT=7,500
I=9
Compute FV= 56,425, after this
PV= 56,425
PMT= 15,000
I=9
N=6
Compute FV=$ 207,480
We will have (207,480+ 70,316) = $277,796 in 12 years to start our business.
Explanation:
Answer:
Option "B" is the correct answer to the following statement.
$15
Explanation:
Marginal revenue is the extra revenue produced from increasing sales of a single unit of the commodity. Marginal benefit is the income received by a business or entity when the creation and distribution of one extra or marginal product.
Marginal Benefit = New revenue - Old revenue
= ($40) - ($25)
=$15
So,the Marginal Benefit for Lionel's Lawn Care is $15 .
Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.)
<span>Shipping Expense: </span>
<span>(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit </span>
<span>86,200 - (13 x 5,100) = £19,900 fixed cost </span>
<span>£ Y = £19,900 + £13 X </span>
<span>Salaries and Commissions </span>
<span>(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit </span>
<span>238,400 - (40 x 5,100) = £34,400 fixed cost </span>
<span>£ Y = £34,400 + £40 X </span>
<span>3. </span>
<span>Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) </span>
<span>Frankel Ltd. </span>
<span>Income Statement </span>
<span>For the Month Ended June 30 </span>
<span>Sales revenue 912900 </span>
<span>Variable expenses: </span>
<span>Cost of goods sold 346800 </span>
<span>Shipping expenses 5,100 x 13 = 66,300 </span>
<span>Commissions 5,100 x 40 = 204,000 </span>
<span>Contribution margin 295,800 </span>
<span>Fixed expenses: </span>
<span>Fixed shipping 19,900 </span>
<span>Insurance expenses 9000 </span>
<span>Depreciation expenses 42700 </span>
<span>Sales salaries 34,400 </span>
<span>Advertising expenses 69200 </span>
<span>Net operating Income 120600</span>
Answer:
$12,500
Explanation:
Bonus = 10% x ($200,000 - taxes)
Bonus = $20,000 - 0.1T
So we must now find T:
T = 40% x ($200,000 - Bonus)
T = $80,000 - 0.4Bonus
now we can replace:
Bonus = $20,000 - 0.1($80,000 - 0.4Bonus)
Bonus = $20,000 - $8,000 + 0.04Bonus
Bonus - 0.04Bonus = $12,000
0.96Bonus = $12,000
Bonus = $12,000 / 0.96 = $12,500
