Answer: "marketing strategy" .
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Answer:
Josefina is not maximizing her profits since she is making a loss of $0.25.
Explanation:
The marginal revenue is the total amount of revenue received from selling an additional unit of product while the marginal cost is the total cost incurred for producing an additional unit of product. The marginal cost and revenue can be compared to determine if producing and selling an additional unit is profitable or will cause a loss.
The profit/loss can be expressed as;
P/L=R-C
where;
P=profit
L=loss
R=total marginal revenue
C=total marginal cost
In our case;
P/L=unknown
R=marginal revenue per unit×number of units=1.50×1=$1.50
C=marginal cost per unit×number of units=$1.75×1=$1.75
replacing;
P/L=1.50-1.75=-$0.25
Since the marginal cost is greater than the marginal revenue, we can conclude that Josefina is making a loss of $0.25
Answer:
A) $9,100, $9,100
Explanation:
Calculation for the net realizable value of the receivables before
Accounts receivable $9,500
Less Allowance for doubtful accounts 400
Net realizable value of the receivables BEFORE $9,100
Calculation net realizable value of the receivables after the write-off
Accounts receivable $9,500
Less Allowance for doubtful accounts 400
Net realizable value of the receivables AFTER $9,100
Therefore The net realizable value of the receivables before and after the write-off was
$9,100, $9,100
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