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madam [21]
3 years ago
7

Suppose you have a monthly entertainment budget that you use to rent movies and purchase cds. you currently use your income to r

ent 5 movies per month at a cost of​ $5.00 per movie and to purchase 5 cds per month at a cost of​ $10.00 per cd. your marginal utility loading... from the fifth movie is 3030 and your marginal utility from the fifth cd is 5050. are you maximizing​ utility? you are
Business
1 answer:
Lelu [443]3 years ago
5 0
You are not maximizing utility, because the marginal utility per dollar spent renting movies is not equal to the marginal utility per dollar spent on​ CDs. We will maximizing utility when the consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility.
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Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given
AnnyKZ [126]

Based on the given information, it can be concluded that Derek is implementing the process of Depreciation.            

<h3><u>Explanation:</u>  </h3>

When dealing with assets whether fixed or non-fixed, the cost over its useful life is reduced in a systematic manner until it reaches zero. This is known as depreciation. It represents the value of the said asset that has been used up. The significance of depreciation is to allow the company to make revenue from the assets while the proportion of buying cost is expended during its service.

Failure to depreciate assets can negatively affect the company’s profits. There are different methods used to calculate depreciation and all depends on the following factors: salvage value, the asset cost price, and useful life.

8 0
3 years ago
Swiss Furniture Company manufactures bookshelves and uses an activityminusbased costing system. The following information is pro
telo118 [61]

Answer:

$12.40

Explanation:

Activity           Estimated Indirect       Allocation Base      Estimated Q. of

                      Activity Costs                                               Allocation Base

<u>Materials handling $7,700                Number of parts     7,350 parts </u>

<u>Assembling          $10,500                Number of parts     7,350 parts </u>

Packaging              $2,410                 Number of units     1,470 bookshelves

The direct materials cost per bookshelf is $39. What is the cost of materials handling and assembling per​ bookshelf?

materials handling cost per part = $7,700 / 7,350 parts = $1.05

assembling cost per part = $10,500 / 7,350 parts = $1.43

total cost per part = $2.48

cost per bookshelf = 5 x $2.48 = $12.40

6 0
3 years ago
Which type of investment offers both capital gains and interest income?
arlik [135]
 Bondholders regularly receive interest income at a preset interest rate, or coupon rate, for a specified period of time. This is the bond’s maturity period.<span> Holders can also sell the bonds in the bond market at their current market price.
So the Answer is BONDS
</span>
7 0
3 years ago
Read 2 more answers
Summarize the effect of credit card interest on the real cost of items.
JulijaS [17]

Answer with its Explanation:

The result is that some of the credit cards pays interests on the cash surplus and charges interests on the cash deficit. If the interest rate is higher then the interest on the real cost of items that are finance with the negative balance will be charged interest on the higher interest rate because the interest rate is higher. If the interest rate is lower then the effect of credit card interest rate would be higher on the real cost of items.

3 0
3 years ago
Which of the following users of accounting information are interested in the quality of a company assets?
kaheart [24]

Answer:

D

Explanation:

Well public is all about quality

7 0
2 years ago
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