James is currently unemployed. He is disappointed every Sunday when none of the job advertisements in the newspaper are for work
1 answer:
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Answer:
a. $30,000.
Explanation:
Willingness to pay is the highest amount a consumer would be willing to pay for a good or service. In this example, the willingness to pay is $50.
Consumer surplus is the difference between price of a product and the willingness to pay.
To calculate the total consumer surplus , refer to the attached image, the consumer surplus is the shaded triangle.
The total consumer surplus = 1/2 base × (height)
The height is the difference between the willingness to pay and the price of the wine = $50 -$30 =$20
The base is the total quantity purchases at $30 =
1/2 × 3 × ($20) = $30
There are 10,000 consumers, therefore consumer surplus =$30,000
I hope my answer helps you.
Answer:
$4,783.88
Explanation:
As for the provided information, the problem is based on activity based costing.
There are 3 activities:
i) Design Changes = $120,000 for 500 changes
Cost per change = = $240 for each change
ii) Setups = $380,000 for 4,000 setups
Cost per setup = = $95 for each setup
iii) Inspections = $100,000 for 9,000 inspections
Cost per inspection = = $11.11
In case of Money Managers, there is printing of 70,000 pages
Design charges = 12 design changes $240 = $2,880
Setup charges = 17 setups $95 = $1,615
Inspection charges = 26 inspections $11.11 = $288.88
Total overhead cost for Money Managers = $2,880 + $1,615 + $288.88 = $4,783.88