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2 years ago

7

Franklin has $2,500 in a savings account that pays interest at the rate of 4% annually. how much interest will he earn after one

year?

1 answer:

prohojiy [21]2 years ago

7 0

Interest earned=2,500×0.04=100

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John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of

gulaghasi [49]

Answer:

No, he doesn't show diminishing marginal utility. Yes, he shows increasing marginal utility for Coke.

Explanation:

The law of diminishing returns states that the marginal or addition satisfaction or utility derived from the consumption of a product increase until a pint and then starts to decrease.

Units Total utility Marginal utility

1 10 10

2 25 15

3 50 25

After 3 bottles, John does not show diminishing marginal utility as the marginal utility (as shown above) continues to increase with each additional bottle of coke consumed.

8 0

3 years ago

The budgeted annual cost of operating a post office truck is $5,500 plus $0.50 per mile. In 2008 the truck was to be driven 25,0

finlep [7]

Answer:

The total cost of operating a truck would be $18000 as calculated below.

Explanation:

The total costs of operating the truck is a combination of fixed costs of $5500 per year and variable of $0.50 per mile ,hence the total cost function is given as:

TC=5500+0.50X

Where represents the number of miles driven per year.

Since X=25000 miles

TC=$5500+($0.50*25000)

TC=$5500+$12500

TC=$18000

The understanding here is that wages paid to the two employees working with the truck is already embedded in the fixed costs of $5500 per year, otherwise that would been given as a distinct cost entirely.

7 0

3 years ago

Company X has beta = 1.6, while Company Y's beta = 0.7. The risk-free rate is 7%, and the required rate of return on an average

Kaylis [27]

Answer:

a. 5.40%

Explanation:

First, I will calculate the new cost of equity for both stock X and Y:

Required rate of return = risk free rate + (beta x market premium)

Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%

Re stock Y = 8% + (0.7 x 6%) = 8% + 4.2% = 12.2%

The difference between the required rate of return = 17.6% - 12.2% = 5.4%

4 0

3 years ago

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $74,000 and $3,900, r

Nadya [2.5K]

Answer:

The 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

Explanation:

The non-collectible accounts expenses on its Year 2 income statement is shown below:

= Ending balance + write off balance - opening balance

= $6,000 + $7,200 - $3,900

=$9,300

The accounts receivable is not to be considered because we have to find out the uncollectible accounts expense, so the account receivable balance should not be taken in the computation part.

Hence, the 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

5 0

3 years ago

On May 7, Keenan Company purchased on account 620 units of raw materials at $21 per unit. During May, raw materials were requisi

a_sh-v [17]

Answer:

Dr Material Inventory $13,020

Cr Trade Payables $13,020

Dr Work In Progress $9,742

Cr Material Inventory $9,742

Explanation:

On 7th May the double entry would be to record the inventory purchases on credit which would increase the inventory by $13,020 (620*21) as under:

Dr Material Inventory $13,020

Cr Trade Payables $13,020

The material sent to production or manufacturing team would be recorded as increase in the work in progress by the value of the material issued which is $9,742 (211*$19 + 273*$21).

Dr Work In Progress $9,742

Cr Material Inventory $9,742

8 0

3 years ago