Answer: b. MB > MC or until they are equal.
Explanation:
It is best that Frieda produces bread at the level where Marginal benefits exceeds marginal costs. The difference will keep giving her more profit.
She should keep increasing her production so long as the Marginal benefit exceeds marginal cost but should stop at the level where the Marginal benefit and marginal cost become equal because producing past this point would mean that she would incur a marginal loss on each unit.
Answer:
$248 per unit
Explanation:
Given that
Selling price per unit = $620
Variable cost per unit = $372
Fixed cost = $868,000
Current sales volume = $4,370,000
The formula and the computation of the contribution margin per unit is shown below:
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $620 - $372
= $248 per unit
If you buy the bond for $1,000 (YTM = 6%), then the yield increases to 7%, and you sell the bond immediately after the first coupon payment (in 1 year), hpr after 1-year
bond price = 60/1.07 +1000/1.07
=990.65
HPR = ((990.65-1000)+60)/1000
=5.06%
A credit score card price coupon is a paper slip with charge information, consisting of the due date and the card's assertion balance, that is supposed to be sent along side a check whilst paying a credit card invoice through mail.
The term "coupon" is derived from the historic use of actual coupons for periodic hobby payment collections. as soon as set on the issuance date, a bond's coupon charge remains unchanged and holders of the bond acquire fixed interest bills at a predetermined time or frequency.
The coupon rate, additionally called the nominal charge, nominal yield, or coupon fee is a percent that describes how plenty is paid by means of a set-income safety to the proprietor of that protection for the duration of the period of that bond.
Learn more about coupon rates here:
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Answer:
1. $173,500
2. $ 71,000
Explanation:
Requirement 1: Solution
We can calculate the fair value of new parcel of land just by adding the current market price with additional cash paid to complete the transaction
Fair Value = Current market price + cash paid additionally
Fair Value = $150,000+$23,500
Fair value = $173,500
Requirement 2: Solution
We need to calculate Gain/loss on exchange first in order to record them on books. This can be done by just subtracting the land's book value from the current market price of land
Gain/loss on exchange = Current market price - book value
Gain/loss on exchange = $150,000 - $79,000
Gain/loss on exchange = $71,000
Entries: Debit Credit
New land $173,500
Old land $79000
Cash $23,500
Gain $71,000
Answer:
1. $54,000
2. $50,000
3. $50,000
Explanation:
1. The computation of transaction price if the expected value is used is shown below:
= Flat fee + (Cost savings × given percentage)
= $50,000 + ($20,000 × 20%)
= $50,000 + $4,000
= $54,000
2. The computation of transaction price if the estimate of variable consideration is used. So, only a flat fee should be considered and the cost saving is ignored. Hence, the amount is $50,000
3. The computation of transaction price if the estimate of variable consideration is used. So, only a flat fee should be considered and the cost saving is ignored. Hence, the amount is $50,000 as there is very uncertainty due to lack of experience
