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1 year ago

which is considered to be a tell-tale indication that the point with the highest total utility has been obtained?

1 answer:

8 0

The marginal utility per dollar is the same for both goods is considered to be a tell-tale indication that the point with the highest total utility has been obtained.

what is marginal utility?

In economics, the benefit or enjoyment derived from utilizing something is referred to as its utility. The marginal utility of an item or service measures how satisfied or how much more they enjoy it after using it more or less by one unit. There are three types of marginal utility. They either have a positive, negative, or zero marginal utility. If you like pizza, for instance, getting a second slice makes you feel better than just one. It suggests that eating pizza will have a positive marginal advantage for you. However, after ingesting the second piece, you already feel full, and a third would not improve your situation. This shows that eating pizza has no marginal value for you.

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This year Burchard Company sold 40,000 units of its only product for $25 per unit. Manufacturing and selling the product require

Svetradugi [14.3K]

Answer:

Plan 2 is the best.

Explanation:

Giving the following information:

This year Burchard Company sold 40,000 units of its only product for $25 per unit.

Manufacturing and selling the product required $200,000 of fixed manufacturing costs and $325,000 of fixed selling and administrative costs.

Its per unit variable costs follow:

Material $ 8.00

Direct labor 5.00

Variable overhead costs 1.00

Variable selling and administrative costs 0.50

Next year the company will use a new material, which will reduce material costs by 50% and direct labor costs by 60% and will not affect product quality or marketability.

Direct material= 4

Direct labor= 2

Plan 1:

Sales= 40,000*25= 1,000,000

Variable costs= (4+2+1+0.5)*40,000= 300,000 (-)

Contribution margin= 700,000

Fixed costs= 525,000 (-)

Net operating income= 175,000

Plan 2:

Sales= 36,000*(25*1.2)= 1,080,000

Variable costs= 270,000

Contribution margin= 810,000

Fixed costs= 525,000 (-)

Net operating income= 285,000

Plan 2 is the best.

5 0

4 years ago

An owner withdrawal of $20,000 would: A. decrease ownerâ€™s equity and increase assets by $20,000. B. increase ownerâ€™s equity

ch4aika [34]

Answer:

C) increase liabilities and assets by $20,000.

Explanation :

Any financial transaction affects both assets and liability equally. If asset is increased , liability also is increased and vice-versa.

In the given problem , Option A and option B states that while one increases , other decreases. which is not possible .

So option C is correct.

6 0

3 years ago

Suppose that you were the manager of a large retail store that was currently experiencing a shoplifting problem. Every hour, app

Soloha48 [4]

<u>Answer: </u>

Benefits are amplified at a point where the minor income efficiency (MRP) is equivalent to the expense of employing a security watch. In this way, a benefit expanding firm will enlist as long as the MRP is more noteworthy than the wages or the expense of recruiting a security monitor.

On the off chance that I need to amplify benefit, at that point I won't enlist the security monitor at a compensation pace of $20 in light of the fact that the expense of recruiting is more noteworthy than the expansion to the complete income or MRP, which is equivalent to $15 (expecting that the security watchman will kill shoplifting).

The above examination shows that a security watchman will be paid a compensation rate for every hour, which is equivalent to the sum spared every hour by the security monitor for wiping out the normal shoplifting every hour.

The sum spared is an expansion to the all out income, and no benefit boosting firm would pay a compensation rate higher than the augmentations to the complete income.

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3 years ago

Exercise 3-24 Recording cost of completed goods LO P4 Prepare journal entries to record the following production activities. Tra

melisa1 [442]

Answer:

Sr. No Particulars Debit Credit

1 Finished Goods $135,600

Work In Process- Assembly department $135,600

Transferred completed goods from the Assembly department to finished goods inventory. The goods cost $135,600.

2 Account Receivable $315,000

Sales $315,000

Cost Of Goods Sold $ 175,000

Merchandise Inventory $ 175,000

Sold $315,000 of goods on credit. Their cost is $175,000.

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3 years ago

Van is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells

Ganezh [65]

Answer and Explanation:

c. In the given case Eric valued the goods in terms of money so here the role of money plays is the unit of account that represent something that can be used in order to value the goods and services

d. In the case when eric wants to store the money and use them in a future so here it is storing of value

e. In this case, eric purchased the lunch and pay $10 so here the food is exchanged with the money that represent the medium of exchange

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3 years ago