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kiruha [24]
3 years ago
14

Elton used a decision rule that says, "only buy well-known brand names" when selecting a television set. he did not look at pric

e, the store, or even discounts when purchasing his television. elton's purchasing pattern is an example of a consumer using a ________ rule.
Business
1 answer:
anzhelika [568]3 years ago
3 0

Answer: C) noncompensatory rule

Explanation:

The non-compensatory rule is used to describe a situation where a person does not believe that the good traits of a product in one area will compensate for perceived bad traits in another area.

For Elton, the good trait is well known brand names and the bad trait is brand names that are not well known. Even if for the brand that is not well known, the price is lower, the discount is higher or the store is well known, these still will not be enough to compensate for the bad trait of not being well known.  

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Oldham Corporation bases its predetermined overhead rate on a variable manufacturing overhead cost of $4.00 per machine-hour and
Rzqust [24]

Answer:

$21.42

Explanation:

The computation of fixed component in the predetermined overhead rate is shown below:-

Fixed component in the predetermined overhead rate = Fixed Overhead ÷ Machine Hours

= $87,822 ÷ 4,100

= $21.42

Therefore for computing the fixed component in the predetermined overhead rate we simply divide the fixed overhead by machine hours.

And all the other information i.e given is not relevant. Hence, ignored it

5 0
3 years ago
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square f
jekas [21]

Answer:

a) $7,400

b)$60,000

Explanation:

First, we need to complete the question

a) What is Rita's home office deduction for the current year?

b) What is Rita's AGI for the year?

Solution

a) Rita's Home Office Deduction for the Current Year

Description                                                        Amount ($)

Gross Income                                                   13,000

Subtract: Her Business Expenses                    (5,600)

The balance                                                        7,400

Subtract: Expenses under 1st Tier                     (6,700)

(Interest 5,100 + taxes 1,600)

Balance                                                                   700

Subtract: Expenses unde 2nd Tier                        (700)

($800 Operating Expernses before limit)

Balance                                                                    0

Subtract: Expenses under 3rd Tier                         (0)

1,600 Depreciation before limit

<u>Net income from Rita's Business                              0</u>

The Deduction allowed Rita is $7,400 a totla of the home office expenses and the home operating expenses

Note that there was no expense subtracted for the Tier 3 expenses this is because Rita's income had reduced to $0 and there was nothing to subtract from

B)  What is Rita's AGI for the year?

The AGI is the Rita's reported AGI of $60,000 + $0 which is the net calculated income from her business. So her AGI remains $60,000.

6 0
3 years ago
Japan has the ability to produce either 10,000 televisions or 5,000 cars in a day. The United States has the ability to produce
lisabon 2012 [21]

Answer:

<h2>The United States has the comparative advantage in car production.</h2>

Explanation:

  • Japan has a lower opportunity cost of producing televisions compared to cars, implying that Japan basically has to give up or sacrifice or trade off relatively less number of cars to produce one more television compared to the production of one more car.
  • Alternatively, US has a lower opportunity cost of producing cars relative to televisions meaning that US has to give up, sacrifice or trade off less number of televisions to manufacture one more car in comparison to the production of one more television.
  • Hence, in this case,US has a comparative advantage in the production of cars and Japan has a comparative advantage in production of television and both countries can produce these respective commodities by using relatively less productive resources or factor inputs.
8 0
3 years ago
Fontaine Inc. recently reported net income of $2 million. It has 500,000 shares of common stock, which currently trades at $40 a
Firlakuza [10]

Answer:

$50

Explanation:

Given,

Current Net income = $2,000,000

No. of common shares today = 500,000

Current market price per share = $40

Anticipated Net income in 1 year = $ 3,250,000

Anticipated No. of common shares in 1 year = 500,000 +150000 =650,000

From this data, then

The current Earnings Per Share(EPS) = \frac{2,000,000}{500,000} = 4

Current Price/Earning ratio = \frac{ Price per share}{EPS} = \frac{40}{4} = 10

Anticipated EPS in 1 year=\frac{Anticipated Net income in 1 year }{Anticipated No. of common shares in 1 year } = \frac{3,250,000}{650,000} = $5

If the company's P/E ratio remain as that of the current at 10, then

The anticipated price of stock in 1 year = Anticipated EPS * P/E ratio in 1 year

 = $5 *10 = $50

4 0
3 years ago
Diseconomies of scale means that a company is too small to purchase in bulk and is unable to lower costs.
Vinvika [58]

Answer:

Diseconomies of scale are when production output increases with rising marginal costs. ... Fixed costs do not change with increases/decreases in units of production volume, while variable costs are solely dependent, which results in reduced profitability. They show how well a company utilizes its assets to produce profit.

Explanation:

It's true.

3 0
3 years ago
Read 2 more answers
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