I'd say B, by leasing the car he'd save more money if it broke down or stopped functioning properly and if that happened he could lease a different car instead of paying multiple times to fix things that would most likely break down again because he owned it.
Answer:
Option (D) is correct.
Explanation:
Total Overhead Cost:
= (Overhead × Number of cases) for all products
= (20 × 350) + (25 × 550) + (17 × 650)
= 31,800
Total Machine Hours:
= Machine hours × Number of cases
= (5 × 350) + (3 × 550) + (4 × 650)
= 6,000
Overhead Rate:
= Total Overhead Cost ÷ Total Machine Hours
= 31,800 ÷ 6,000
= 5.30
Total product cost per case for Product GC:
= Direct Material + Direct Labor + Overhead
= 80 + 30 + (Machine hours × Overhead Rate)
= 80 + 30 + (3 × 5.3)
= 80.00 + 30.00 + 15.90
= $125.90
Answer:
Cannot be determined
Explanation:
If the marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18.
For it to be determined if Adhira is maximizing her utility, we need to compare the different units of utility per product to the individual prices of the product.
The Utility Maximization rule states that <u>consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility</u>.
It is marginal utility per dollar spent that is equalized. and not absolute utility.
