In order to derive Lily's demand curve for bananas, we need to solve the buyer's problem for her multiple times and find the optimal number of bananas, when price of a bananas is at a different level each time.
Explanation:
The demand curve is an intractable economic diagram that indicates the connection between an overall market demand for commodity quantity and market price.
The market demand graph is the convergence of all private market demand curves. This indicates the quantity expected by all people at different prices. For eg, the quantity expected by all advertisers at 10 dollars per day is 150 lattes.
Answer:
retained earnings
Explanation:
In simple words, Retained earnings refers to the amount from net profits left available to the company after the owners have taken out dividends. The determination to maintain the profits or disperse them to the owners is typically left mostly to administration of the company.
Although this is done by the declaration of income, the net benefit is still included both in the income statement as well as the cash flow statements. This are not paid to shareholders as dividends but are rather used for new funding back into the company..
Question Completion:
We assume that the variable manufacturing cost is $55 per unit.
Answer:
The change in operating income = $60,000
Explanation:
a) Data and Calculations:
Special order = 3,000 units
Price of special order = $75 per unit
Variable cost per unit (assumed) = $55
Fixed costs = unchanged
Variable marketing and administrative costs = unchanged
The change in operating income = $60,000 (($75 - $55) * 3,000)
b) Given the above scenario and the assumed variable cost per unit of $55, the change in operating income will be a total of $60,000, which adds to the normal business of the company.
