To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations.
<h3>What is
marginal cost?</h3>
The marginal cost in economics is the change in total cost that occurs when the quantity produced is increased, or the cost of producing additional quantity.
According to the law of declining marginal utility, as consumption increases, the marginal utility obtained from each extra unit decreases.
Marginal cost is an important concept in economic theory because a corporation seeking to maximise profits will produce until marginal cost (MC) equals marginal revenue (MR) (MR). After then, the cost of creating an additional item will outweigh the money generated.
To know more about marginal cost follow the link:
brainly.com/question/11689872
#SPJ4
Answer and Explanation:
The journal entries are shown below:
On December 31
Bad debt expense Dr $5,232 ($654,000 × 0.80%)
To Allowance for doubtful debts $5,232
(To record the bad debt expense)
On Feb 01
Allowance for doubtful debts Dr $327
To Account receivable $327
(To record the uncollectible amount)
On June 5
Account receivable $327
To Allowance for doubtful debts Dr $327
(To record the uncollectible amount)
On June 5
Cash Dr $327
To Account receivable $327
(To record the cash received)
Answer: It is important to establish limits through the partnership agreement, because by trust there could be disagreements in the future, some ideas for this agreement are the following:
I. The dividends resulting from the coffee shop profits must be distributed equally and will correspond to the amount resulting from discounting sales less costs and expenses.
II. Personal loans will not be allowed to the owners with the money taken from the coffee shop box.
III. It will not be allowed to consume the products of the coffee shop without paying what corresponds.
IV. Both owners will have the same rights to perform the duties of a manager.
Answer:
$1,467.88
Explanation:
Net pay is the amount one receives after subtracting deductions from the gross pay. Therefore, net pay is the gross pay minus all the deductions such as social security, federal and state taxes.
In this case, the gross pay is $1,828. The total taxes are $ 360.12.
The net pay will be $1,828 -360.12.
= $1,467.88
Answer:
26762.74
Explanation:
Prior service cost amortization for 2020 can be calculated by first calculating the average time until the employee's retirement. After calculating the average time until retirement we will divide the service cost at that time
Workings
average time until retirment = 1880/330
average time until retirment = 5.69 years
prior service cost amortization for 2020 = $152,280/5.69
prior service cost amortization for 2020 = $26762.74
