This shorter payback period is positive and beneficial to the consumer, as it allows for harmony with amortization expenses.
We can arrive at this answer because:
- A short payback period is beneficial because of its relationship to amortization, as long-term debt allows this amortization to take place.
- These amortization expenses allow the cost of long-term assets to be represented in the payment.
- However, when the short-term payback period allows for amortization, causing the asset's value to be reduced by the amount that will be paid by the consumer.
In this case, we can state that in cases like the one shown in the question above, the short payback period is very beneficial and interesting to the consumer, as it can promote economic benefits.
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Answer and Explanation:
Data provided
Initially anticipated closure costs = $2,000,000
The journal entry is shown below:-
Landfill Closure Liability Dr, $2,000,000
To Cash $2,000,000
(Being landfill closure liability is recorded)
Therefore we debited the landfill closure liability as it decrease the liability and we credited the cash as decreases the assets.
Answer:
Her contribution was $300 and total contribution was $1,800
Explanation:
Gross Domestic Product is the value of goods and services which is produced or performed in the specific period. The value included in the GDP is the gross value of sales minus the costs associated to make it. In this question they made $40 per day it means they earned the return of $40 per day after deducting all the expenses from sales amount.
So, total contribution will be
Total = $40per day x 45 days = $1,800
Her contribution = $1,800 / 6 = $300
Answer:
The cost of goods sold for the year is $134,300
Explanation:
The cost of goods sold for the year = Beginning inventory + Merchandise Purchased - Ending inventory
Tuity Fruity Beverage Company's purchases $140 comma 700 and has beginning inventory 12 comma 600, ending inventory 19 comma 000.
Therefore:
The cost of goods sold for the year = $12,600 + $140,700 - $19,000 = $134,300
Answer:
The marginal propensity to consume is <u>92 percent</u>.
Explanation:
Marginal propensity to consume (MPC) refers to the additional expenditure on consumption by consumer as a result of an in national income.
That is, MPC is a measure of the proportion or percentage of the additional income that goes consumption expenditure.
MPC can be calculated using the following formula
MPC = ΔC / ΔY ......................................... (1)
Where;
ΔC = Change in consumption = New consumption - Old consumption = $1,168 - $800 = $368
ΔY = Change in income = New income - Old income = $1,400 - $1,000 = $400
Substituting the values into equation (1), we have:
MPC = $368 / $400 = 0.92, or 92%
Therefore, the marginal propensity to consume is <u>92 percent</u>.
