Answer:
The answer is $119
Explanation:
Solution:
The firm is working in a competitive market that is seen as perfect.
Thus,
The profit the condition for maximizing profit is given below:
P = MR =MC
Now,
The market price of the product is =$290
So,
P = $290
From the given table, we noticed that the profit maximizing output level is 9 units when P = MC
The profit (π) = total revenue - cost total
= ( P * Q) - ( ATC * Q)
= 290 * 9 - 171 * 9
= 2610 - 1539
= 1071
Therefore, the per-unit economic profit at the profit-maximizing output is
=$1071/9
=$119
Answer:
c. $24,990
Explanation:
The Term 2/15 net 45 mean 2% cash discount is offered if the payment is made within 15 days otherwise the credit period is 45 days. There is no after 15 days of sale.
Amount of Sale = $25,500
Discount Rate = 2%
The Pound Co. paid the invoice within the discount period. They are eligible to receive the 2% discount on sale value.
Discount Amount = $25,500 x 2% = $510
Net Sales amount in this transaction = $25,500 - $510
Net Sales amount in this transaction = $24,990
Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
It is important so no one in the agreement screws the other person over
