2484
(2300)
---------
184
184 / 8 = 23
23 / 2300 = .01 -->1%
The number of burritos that will be supplied depends on the costs the supplier incurs.
You did not include any charts that can be used to answer this specific question so I will give a general answer.
When a supplier is deciding the price at which to supply a good, they look at:
- Their costs both fixed and variable
- The price others are charging
- The demand for the good
The most important factor is their costs. If in this case, it costs more than $1 to produce a burrito, they will not supply burritos. If their costs are less than a dollar, the number of burritos supplied will then depend on other factors but they will supply some.
In conclusion, if the cost to make the burrito is less than $1, the supplier will supply no burritos but if the cost is less, they will supply based on other factors.
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Answer:
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Explanation:
Answer:
Basis of Lewis of Lot #3 = $16,500
Explanation:
Total of all the lots = $25,000 + $31,250 + $20,625 + $48,125 = $125,000
Since the land is purchased for $100,000
The basis for each dollar = $100,000/$125,000 = $0.8 for each dollar
Thus for Lot #3 basis = $0.8 X $20,625 = $16,500
Note: The basis is calculated so that directly the lot value is not considered as the total cost is only 80% of total lot value.
Basis of Lewis of Lot #3 = $16,500
