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3 years ago

The 100% rule does not imply that the optimal solution will necessarily change if the percentage exceeds 100%

1 answer:

kondor19780726 [428]3 years ago

3 0

The truth is 100% Rule doesn’t imply that the optimal solution will automatically change if the percentage exceeds 100%. The 100% Rule compares, proposed changes to allowed changes. The value of the objective function will change, but the values of the decision variables and the dual prices will stay the same.

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If consumer has rational, monotonic and convex preferences, which of the following is true concerning the substitution effect of

Zanzabum

Answer:

It will lead to an increase in consumption of good X only if X is a normal good ( D )

Explanation:

If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .

This is because the demand for Normal goods increases with increase in consumers income. therefore a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.

5 0

3 years ago

If a check correclty written and paid by the bank is incorrectly recorded in the company;s's books for $794 how should this erro

worty [1.4K]

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, this error be treated on the bank reconciliation--- Subtract $45 from the book balance.

What is bank reconciliation?

Bank Reconciliation is an important process in accounting in which organizations match their bank statements with the transactions that are recorded in their general ledger. Preparing a bank reconciliation statement helps businesses to eliminate possible errors in transactions or bookkeeping

What is the journal entry for bank reconciliation?

The journal entries for the bank fees would debit Bank Service Charges and credit Cash. The journal entry for a customer's check that was returned due to insufficient funds will debit Accounts Receivable and will credit Cash.

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6 0

2 years ago

Each of the following, except one, is a condition that characterizes a perfectly competitive labor market. Which is the exceptio

Kitty [74]

Each of the following, except one, is a condition that characterizes a perfectly competitive labor market. The exception is workers receive wages that are above their marginal revenue product (MRP).

In developing countries, labor markets play a central role in determining economic and social progress since employment status is one of the key determinants of exiting poverty. Ultimately, having a decent, well-paid, and secure job is the most sustainable path to increasing incomes and consumption levels.

That is, in the labor market, employers are willing to buy more hours of labor at lower wages than at higher wages. Although employers, who demand labor, prefer lower wages, workers, who supply that labor, prefer high wages.

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2 years ago

Rogers Products uses a periodic inventory system. The company’s records show the beginning inventory of PH4 oil filters on Janua

Dmitry [639]

Answer:

a. Ending inventory value by average method is $ 98.77

b. Ending inventory value by FIFO method is $ 120

c. Ending inventory value by LIFO method is $ 82

Explanation:

Following are three types of Inventory valuation method.

1 ) Average Method : It is calculated by dividing total cost of inventory purchased divided by total units purchased.

In Periodic Inventory system,

Weighted average unit cost = Total cost of materials purchased / Total no.of units purchased.

Given data

Beginning inventory = 11 units

Date units Unit Cost Total Cost

Beginning inventory 11 3 33

Feb-23 18 3.5 63

Apr-20 28 3.8 106.40

May -04 37 4 148

Nov-30 20 5 100

Total 114 450.4

Weighted average unit cost = 450.4 / 114 = 3.95

Ending inventory contains 25 units = 25 x 3.95 = 98.77

2) FIFO: FIFO means First in First out. In this type of inventory valuation method, ending inventory is composed of most recently purchased items.

Ending inventory by FIFO method is = (20 x 5) + (5 x 4) = 120.

3) LIFO: LIFO means Last in First out. In this type of inventory valuation method, most recently purchased items or units are issued to the production.

Ending inventory by LIFO method is = (11 x 3) + (14 x 3.5) = 82.

During inflation, FIFO results higher income as the lowest cost items are issued to the production and results higher inventory.

4 0

3 years ago

Catharine, Inc. is considering issuing additional long-term debt to finance an expansion. The company currently has $20 million

sladkih [1.3K]

Answer:

$10 million

Explanation:

Calculation for How much additional 10 percent debt can Catharine, Inc issue

First step is to find the EBT

EBT = $3.0 / (1 - 0.40)

EBT= $5.0

Second step is to find the EBIT

EBIT = $5.0 + $1.0

EBIT= $6.0

Third step is to find the Interest permitted using this formula

Interest permitted = EBIT / Times interest earned

Let plug in the formula

Interest permitted = $6.0 / 3.0

Interest permitted = $2.0

Fourth step is to find the Additional interest amount

Additional interest = $2.0 - $1.0

Additional interest = $1.0

Last step is to compute the Additional debt amount

Additional debt = $1.0 / 0.1

Additional debt= $10 million

Therefore the Additional debt will be $10 million

5 0

3 years ago