Answer:
b. debit to Vacation Pay Expense for $16,400.
Explanation:
current month's accrued = total current's vacaction cost/12
= $196,800/12
= $16,900
Adjusting journal entry will be:
Dr Cr
vacation pay expenses $19,600
to vacation payable $16,900
Therefore, The journal entry to record the adjusting entry required on December 31 to record the current month's accrued vacation pay will include a debit to Vacation Pay Expense for $16,400.
Answer:
Explanation:
Retention rate = 75%
Contribution to profit and overhead = 35%
Purchase laptop every 2,5 years (1/2.5=0.4 per year)
Average cost = $750
Value of loyal customer =
= Price * Purchase frequency * Gross margin * 1/(1-Retention rate)
Value of loyal customer = 750*0.4*0.35*1/(1-0.75) = 750*0.4*0.35*1/0.25 = $420
Answer:
The farmer should use more fertilizer and less labor.
Explanation:
The production of wheat requires two inputs, labor and fertilizer.
The price of labor is $4.50 and the price of fertilizer is $3.00.
A farmer is currently employing the inputs such that the marginal product of labor is 11 and the marginal product of fertilizer is 8.
The ratio of price to marginal product for labor
=
= 2.44
The ratio of price to marginal product for fertilizer
=
= 2.66
Since the ratio for fertilizer is higher than labor, it implies that fertilizer is providing more benefit to the farmer as compared to labor. So the farmer should use more fertilizer.
The market sales will go down in the oil stores sense the oil refineries got hit by the hurricane