Answer:
a. Utilities Expense 500
Cash 500
Explanation:
Given: Consulting immediately paid $500 cash for utilities.
As $500 cash been paid for utility expenses.
We know the golden rule of accounting transaction:
- Personal accounts: Debit the receiver, credit the giver.
- Impersonal real account: Debit what comes in, credit what goes out.
- Impersonal Nominal account: Debit all expenses and losses, credit all profit and gains.
Paid for utility expense of firm is not the personal account, however, it is impersonal account. In the given case, cash is going out of business.
Therefore, Debit all expense and losses and credit what goes out of business.
Journal Entry of the transaction:
Debit utility expenses account--- $500
Credit cash account--- $500
Answer:
determining the final price
Explanation:
In the given scenario Malcolm wants to use a pricing strategy that relies on his extensive experience and legal background rather than on time or effort spent on cases.
So he is promoting a higher quality of legal representation compared to other firms.
The next step in his pricing strategy will be to set the final price he wants to.offer his services.
This should be done by taking note of other law firms operating in the same community. A price that is too high will drive customers to competitors.
Answer:
Total utility is the sum of marginal utilities
.
Explanation:
In the economy, utility is a measure of relative satisfaction. In other terms, it is a term that refers to the total satisfaction that a consumer experiences when consuming a good or service. Given this measure, one can speak of increasing or decreasing utility in a meaningful way and thus explain economic behavior in terms of attempts by the economic agent to increase his or her utility. Utility is often modeled as a unit influenced by the consumption of various goods and services, the possession of wealth and the enjoyment of free time. Total utility, therefore, is the sum of all the marginal utilities that compose the total accumulation of consumption of the individual.
Answer:
The optimal production plan gives a total costs of $417,672 for the periods Feb to May
In Feb we will have to hire 26 workers to close the gap between demand and production from our 100 existing workers
In March however, we will have to lay them off (26 workers) to keep our production in line with demand.
In April, we are constrained to 100 workers, thus requiring that we run overtime. The overtime requirement is between 3,060 hours to max of 5,000 hours. Note that inspire of the hours chosen, demand for April still won't be fulfilled.
The best option will be the one that gives us last backlog because of the costs of backorder being extremely costly.
5,000 overtime hours in April is the best option .
In May, we are constrained to our 100 workers, meaning we will fulfill our back orders and also retain inventory in hand of 7,760 units.
The 3 pages attached show how the cost is worked out and the presentation as well.
