Answer:
$8,040,000
Explanation:
Net sales made under warranty in 2020 = $201 million
Warranty Cost = 4%
<em>Calculation of Warranty expense on Brazell's 2020 income statement:</em>
= Net sales made under warranty in 2020 * Warranty Cost
= $201 million * 4%
= $8,040,000
So, the amount of warranty expense on Brazell's 2020 income statement is $8,040,000.
Answer:
The correct answer is option b.
Explanation:
Changing oil is a service. Susan used to go to Speedy lube for changing the oil. She used to pay them in return for their service. This payment was included in GDP. But Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself.
When Susan is changing oil herself this will not be included in the GDP as she is doing it for herself and no one is paying her for it.
<span>c. the retail price of everything that comes with that particular vehicle. </span>
Answer:
B. an economic profit of $6.50
Explanation:
Note: The full question is attached
Price Q TR MR Output TC MC
2.75 3 8.25 - 3 4 -
2.50 4 10 1.75 4 4.5 0.5
2.25 5 11.25 1.25 5 4.75 0.25
2 6 12 0.75 6 5.75 1
1.75 7 12.25 0.25 7 7.75 2
For profit Max MR = MC. MC>MR
At Q = 5, MR = 1.25 & MC = 0.25
Economic profit = TR - TC = 11.25 - 4.75 = $6.5
But at Q = 6, MR = 0.75 MC = 1. Net benefit is negative