Answer:
$0
Explanation:
Bonita is a person, not a company, therefore she cannot record operating losses. This is a not a common situation since you generally don't have more deductions than gross income, but it is a possible situation. For example, if Bonita had a lot of medical expenses during the last year and they accumulated to actually more than her salary. She may have paid them using her savings, selling some assets or by obtaining a loan.
Answer:
When Economists say that humans make decisions at the margin they mean that decisions are made on the basis of the cost and benefit of getting an additional unit of a good/ service.
Marginal benefit refers to the additional utility that we will derive from consuming one extra unit of a good or service and factors in heavily into our decision making. We usually accept a decision if the Marginal benefit is higher or equal to the Marginal cost ( cost of the additional unit) of the good/service.
If the Marginal Cost is instead higher, the decision would most probably be cancelled.
Four requirements for a valid contract are an offer, acceptance by the other party of the offer, a mutual agreement or meeting of the minds of the contracting parties and a valid consideration.
Answer:
Is irrelevant in decision making
Explanation:
Since the suck cost is the cost that no longer is recovered so it should not be a factor to consider when making a decision. For example, you have bought a cinema ticket for this evening, but it is heavily rainy so you may get sick if you go to the cinema. The fact that you have paid for this ticket should not consider whether to go or stay home since you can not get this amount of money no matter what happens.
Answer:
8,000= fixed overhead
Explanation:
Giving the following information:
Bell’s Shop can make 1000 units of a necessary component with the following costs:
Direct Materials $24000
Direct Labor 6000
Variable Overhead 3000
Fixed Overhead ?
The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.
Buy= 41,000/1,000= $41
Total Unitary cost= 24,000 + 6,000 + 3,000 + fixed overhead
41,000= 33,000 + fixed overhead
8,000= fixed overhead
