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Rashid [163]
4 years ago
13

Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for ​$14​, a second lawn for ​$16​

, and a third lawn for ​$22. Also suppose that three neighbors are interested in having their lawns mowed. Mrs. Jones would be willing to pay ​$30 to have her lawn​ mowed, Mr. Wilson would be willing to pay ​$28, and Ms. Smith would be willing to pay ​$22.
Business
1 answer:
zimovet [89]4 years ago
8 0
The answer in what if Tom offers to mow lawns for $22 each, what will be his producer surplus?
Tim's producer surplus would be $14 
Tim would be able to mow all three lawns at a price of $22, because all three of his neighbors would be willing to pay at least that much. Tim would receive a total of $22 x 3, or $66 for mowing the three lawns. 
Tim's "supply curve" would be: he would be willing to mow three lawns for a total of $14 + $16 + $22, or $52. 
He receives $66 for something that he would be willing to do for $52, so his producer surplus would be $14.
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Ibarra Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department,
Morgarella [4.7K]

Answer:

Conversion Costs per unit  = $ $599,123/ 110080= $ 5.442

Explanation:

Conversion costs of $ $599,123

                                    Units            % of Completion                EUP

                                                            D.M       C.C                D.M       C.C

Units completed      106,000          100        100          106,000      106,000

<u>Ending Inventory       13,600          100          30            13,600        4080</u>

T<u>otal Equivalent  Units Of Production                          119600    110,080</u>

<u />

Conversion Costs per unit  = $ $599,123/ 110080= $ 5.442

Another way of finding out is through using the beginning inventory and the units started but as we do not have the % of completion for started units it cannot be computed.

                                   

7 0
3 years ago
Omega Contractors manufactures each house to customer specifications. It most likely would use_____________.a. Process costing.b
sergey [27]

Answer:

c. Unique costing. Job order costing.

Explanation:

Doing work on the specific requirement of customer is classified in unique costing and job order costing. Because all specifications , time period and requirements of the job is different from each other. All the other options are related to a similar business operations which require same costing method to be accounted for.

6 0
3 years ago
The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment incl
Kisachek [45]

Answer:

Contribution margin  for Turner  is $30,690

Contribution margin  for Home  Box  Office is $35,165

Contribution margin  for Warner Bros is $65,681

CM ratio:

Turner 62%

Home Box Office 65%

Warner Bros 77%

Explanation:

The computations of contribution margin and contribution margin ratio are as follows:

Time Warner Inc.    

                        Turner  Home Box Office Warner Bros total

                       $(miilion)      $(miilion             $(miilion)        $(miilion)

Segment revenue 49,500       54,100   85,300                   188,900    

Variable costs   (18,810)     (18,935)    (19,619)                   (57,364)

Contribution margin 30,690     35,165           65,681                    131,536  

CM ratio                        62%         65%       77%  

Variable costs as % of sales 0.38  0.35 0.23  

CM ratio=contribution margin ratio=contribution margin/sales revenue

Find attached as well.

Download xlsx
5 0
3 years ago
For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the fol
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Answer:

Income Tax Expense (Dr.) $49,080,000

Deferred Tax Liability (Cr.) $49,080,000

Explanation:

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Income Tax expense = ( $117,000,000 + $14,700,000 + $2,300,000 - $11,300,000) * 40%

Income Tax expense = $49,080,000

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Explanation:

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