Producer surplus is the differential amount between the minimum amount they are willing to accept and the actual amount they actually received.
thus,
Producer surplus = the area triangle when prices are graphed with respect to time.
Using the formula for the area of right triangles
Producer surplus = 1/2 (4)(40)
Producer surplus =$80/hr
Answer:
Option D is the right answer.
Explanation:
The selling of debt or factoring of debt means selling of the claims to accounts receivables to a third party in return for instant cash. The factoring firm charges a certain factoring fee and only pay a certain percentage of cash to the selling company.
The amount of cash that will be received is,
Cash = 4400 * 0.96 = 4224
Factoring fee expense = 4400 * 0.04 = 176
Thus, the entry to record such a transaction for the firm which is selling its accounts receivable claims is,
Cash 4224 Dr
Factoring Fee expense 176 Dr
Accounts Receivable 4400 Cr
Answer:
A. Does production of fake whales exhibit diseconomies of scale, economies of scale, or constant returns to scale?
the production of fake whales exhibit economies of scale
- the total cost per unit for producing 1 whale = $16,000
- the total cost per unit for producing 2 whale = $10,500
- the total cost per unit for producing 3 whale = $8,667
- the total cost per unit for producing 4 whale = $7,750
- the total cost per unit for producing 5 whale = $7,200
- the cost per unit keeps decreasing as total output increases
B. What is the fixed cost of producing fake whales?
$11,000, the cost of the mold
C. What is the variable cost of producing fake whales?
$5,000 per whale
Answer:
$72
Explanation:
To calculate the weighted contribution margin we can use the following formula:
[(sales price A - variable cost A) x proportional sales A] + [(sales price B - variable cost B) x proportional sales B]
= [($200 - $120) x 80%] + [($100 - $60) x 20%] = $64 + $8 = $72
Answer:
5.15%
Explanation:
Following data provided in the question
Coupon rate = 5.02%
Present value of the bond = $1,948.34
Par value = $2,000
Time period = 17 years
By considering the above information, the current yield on the bond is
= (Par value × coupon rate interest) ÷ (Present value of the bond)
= ($2,000 × 5.02%) ÷ ($1,948.34)
= 5.15%
