A duty is a type of tax.
Consider the modern day examples of "duty free" shopping available in places like airports and certain tourist locations where people can purchase luxury goods without owing a tax to any country or locality.
Answer:
The book value of this equipment at the end of four years if he ignores bonus depreciation $26,290.
Explanation:
Cost of property = $67,600
Balance Depreciation
Year 1 67,600 13520
Year 2 54,080 17,306
Year 3 36,774 7,061
Year 4 29,713 3,423
Book vaue at the end of year 4 = 29,713 - 3423 = $26,290
Answer:
a. Marginal revenue exceeds marginal cost.
Explanation:
<u>Note</u>: <u>The words "profit is not maximized" have been interpreted as, "the firm at current level of output earns profits, but not maximum profits it can earn." The answer provided herein is based upon this assumption.</u><u> </u>
Marginal revenue (MR) refers to the addition to total revenue when an additional unit of output is sold.
Similarly, marginal cost (MC) refers to the addition to total cost of production, when an additional unit is produced.
For an optimal level of production, and as a condition for profit maximization under perfect competition,
MR = MC and the marginal cost should increase post the level of output at which MR = MC.
If a competitive firm operates at a level wherein profits are not maximized, but the firm does earn profits, it indicates the stage of production wherein the marginal revenue exceeds the marginal cost.
Thus, as firm produces more and more units of output, it would reach a stage wherein marginal revenue would equal marginal costs and profits shall be maximized.
Answer:
Newton Corporation
Net income for the year = $120
Explanation:
a) Data and Calculations:
Direct materials cost = $400
Direct labor cost = 800
Manufacturing overhead 400
Total manufacturing cost $1,600
Cost per unit = $8
Ending Inventory of finished goods = 150 units * $8 = $1,200
Cost of goods sold = 50 * $8 = $400
Sales revenue = 50 * $12 = $600
Newton Corporation
Income Statement
For the year ended December 31:
Sales Revenue $600
Cost of goods sold 400
Gross income $200
Selling & Admin.
expense 80
Net Income $120
b) Newton Corporation's net income is the difference between the Sales Revenue, cost of goods sold and selling and administrative expenses.
Answer:
The correct answer is letter "C": bans viewing by non-subscribers.
Explanation:
In economics, the free-rider problem arises when individuals refuse to pay their fair share or pay less for something others are paying. This situation occurs when individuals can consume a given resource without limits and when there is regulation over the resource consumption.
Thus, <em>Daleview is avoiding the free-rider problem in its TV cable service by setting bans to non-subscribers accounts.</em>
