Answer: (a) $197,500
(b) $ 189,500
Explanation:
Given : The marginal cost function : 
To find the cost function, we need to integrate the above function with respect to x.
Now, the additional cost incurred in dollars when production is increased from 100 units to 150 units will be:-
![\int^{150}_{100}\ C'(x)\ dx\\\\=\int^{150}_{100} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{150}_{100}\\\\=[4000(150)-\dfrac{0.4(150)^2}{2}-4000(100)+\dfrac{0.4(100)^2}{2}]\\\\=[600000-4500-400000+2000]\\\\=197500](https://tex.z-dn.net/?f=%5Cint%5E%7B150%7D_%7B100%7D%5C%20C%27%28x%29%5C%20dx%5C%5C%5C%5C%3D%5Cint%5E%7B150%7D_%7B100%7D%20%284000-0.4x%29%5C%20dx%5C%5C%5C%5C%3D%5B4000x-%5Cdfrac%7B0.4x%5E2%7D%7B2%7D%5D%5E%7B150%7D_%7B100%7D%5C%5C%5C%5C%3D%5B4000%28150%29-%5Cdfrac%7B0.4%28150%29%5E2%7D%7B2%7D-4000%28100%29%2B%5Cdfrac%7B0.4%28100%29%5E2%7D%7B2%7D%5D%5C%5C%5C%5C%3D%5B600000-4500-400000%2B2000%5D%5C%5C%5C%5C%3D197500)
Hence, the additional cost incurred in dollars when production is increased from 100 units to 150 units= $197,500
Similarly, the additional cost incurred in dollars when production is increased from 500 units to 550 units :-
![\int^{550}_{500}\ C'(x)\ dx\\\\=\int^{550}_{500} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{550}_{500}\\\\=[4000(550)-\dfrac{0.4(550)^2}{2}-4000(500)+\dfrac{0.4(500)^2}{2}]\\\\=[2200000-60500-2000000+50000]\\\\=189,500](https://tex.z-dn.net/?f=%5Cint%5E%7B550%7D_%7B500%7D%5C%20C%27%28x%29%5C%20dx%5C%5C%5C%5C%3D%5Cint%5E%7B550%7D_%7B500%7D%20%284000-0.4x%29%5C%20dx%5C%5C%5C%5C%3D%5B4000x-%5Cdfrac%7B0.4x%5E2%7D%7B2%7D%5D%5E%7B550%7D_%7B500%7D%5C%5C%5C%5C%3D%5B4000%28550%29-%5Cdfrac%7B0.4%28550%29%5E2%7D%7B2%7D-4000%28500%29%2B%5Cdfrac%7B0.4%28500%29%5E2%7D%7B2%7D%5D%5C%5C%5C%5C%3D%5B2200000-60500-2000000%2B50000%5D%5C%5C%5C%5C%3D189%2C500)
Hence, the additional cost incurred in dollars when production is increased from 500 units to 550 units = $ 189,500
Answer:
a) $1080
b)$19080
c) Loan given | -$18000
d)$540
e)$19620
f)loan | 18000
Interest received | $1620
g) $1620
Explanation:
a) Year 1 : a) Interest income = $18000*9%*8/12 = $1080
b) The total receivable at december 31,Year = 18000+1080 = $19080
c) Year 1 :Statement of cash flow
Loan given | -$18000
d) Interest income Year 2 = $18000*9%*4/12 = $540
e) Total cash collect in 2017 = $18000+$1080 + $540 = $19620
f) Cash flow from investing activities :
loan | 18000
Interest received | $1620
g)Total interest earned = 18000*9% = $1620
Answer: D. $7,500
Explanation:
Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.
Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.