In economic terms, marginal is another word for: C. additional
Let's say that you need to consume 2 hamburgers to be fully satisfied. The marginal cost refer to the additional cost that you need to pay to acquire the second hamburgers
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Answer:
c. $3,750
Explanation:
Green Thumb Company provides two years warranty for any product defect. The provision needs to be made for the warranty expense and it should be reported in the balance sheet as warranty liability. The company budgets the warranty expense to be 2% in year of sales which is $2,400 ($120,000 * 2%) and 3% in the year after sale which is $1,350 ($45,000 * 3%). The total warranty liability for the year 2017 which will be reported at December 31, 2017 is $3,750.
Answer:
A) Katie's maximum deduction is $200,000 x 20% = $40,000
But we must check that her deduction meets 3 requirements:
- cannot exceed 50% of her earned wages = $300,000 x 50% = $150,000 ✓ requirement met
- cannot exceed 25% of her earned wages + 2.5% of qualified property = ($300,000 x 25%) + ($150,000 x 2.5%) = $78,750 ✓ requirement met
- cannot exceed 20% of taxable income = $400,000 x 20% = $80,000 ✓ requirement met
B) Katie's maximum deduction is $400,000 x 20% = $80,000, but since her net business income is higher than her taxable income, she must calculate 20% x $350,000 (taxable income) = $70,000 (same as requirement 3 in previous answer)
Answer:
(3) $3,750,000
Explanation:
The computation of the expect monthly sales to be as high is shown below:
Given that
Sales per month = $300,000
Royalty payments = 8% of sales
So, the expected monthly sales would be
= Sales per month ÷ Royalty payments percentage
= $300,000 ÷ 8%
= $3,750,000
We simply divided the sales per month by the royalty payment percentage i.e 8%
Answer:
9587 orders are needed to achieve breakeven sales revenue for March' 06
Explanation:
Break Even Point is where firm earns Total Revenue (TR) equal to its total cost (TC)
- Total Revenue = Average Revenue or Price x Quantity ;
- Total Cost = Total Fixed Cost + Total Variable Cost
Let quantity i.e unit of sales revenue be = x
Above 2 formulas & ; Total Variable Cost = Average Variable Cost x Quantity implies :-
12.95x = 7.38x + 53400
12.95x - 7.38 x = 53400
5.57 x = 53400
x = 53400 / 5.57
x = 9587
