Answer:
a. the buyer’s consumer surplus for that good is maximized.
Explanation:
The consumer will purchase up to the moment at whose preference price matches the market price.
Because of the diminished return theory, the following unit (k+1) will have a lower benefit to the consumer thus, it will have purchased only if the price is lower. Therefore, it will not purchase as the market price is the same as the previous unit but the consumer benefit is lower.
Answer:
Total incremental net income = $28,000
Incremental per gallon increase in net income = $0.70 per unit
Explanation:
a. The preparation of incremental statement to find out the increase in net income
Total production $140,000
Less:
Incremental cost
Direct material $68,000
($1.70 × 40,000 gallons)
Direct labor $24,000
($0.60 × 40,000 gallons)
Variable manufacturing
overhead $20,000
($0.50 × 40,000 gallons)
Total incremental cost ($112,000)
Total incremental net income $28,000
b. Incremental per gallon increase in net income = Total incremental net income ÷ Total quantity
= $28,000 ÷ 40,000 gallons
= $0.70 per unit
Therefore the total incremental net income is $28,000 and incremental per gallon increase in net income is $0.70 per unit.
Answer:
Use a credit card and pay off something each month.
For example, a spotify membership with a student discount is $5 a month, these monthly payments will help increase your credit.
Explanation:
Answer:
Explanation:
The journal entry is shown below:
On June 1
Cash A/c Dr $99,000
To Notes payable A/c $99,000
(Being the amount borrowed is recorded)
For recording this transaction, we debited the cash account and credited the notes payable account so that the correct posting can be done
All other information which is given is not relevant. Hence, ignored it
