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zalisa [80]
3 years ago
7

Suppose Scott has a budget of $56 that he spends on movies (Q1) and roller skating (Q2). The price of movie tickets recently inc

reased from $5 per person to $8 per person, and the price of roller skating decreased from $8 to $7 per person. What is Scott's new budget constraint?
Business
1 answer:
8090 [49]3 years ago
5 0

Answer:

1.6 Q1 + 0.875 Q2 = $56

Explanation:

Budget constraint equation represents the total budget allocation to different activities under consideration.

old Budget Constraint

Q1 + Q2 = $56

New Budget Constraint

(Q1)*8/5 + (Q2)*7/8 = $56

(Q1)*1.6 + (Q2)*7/8 = $56

(Q1)*1.6 + (Q2)*0.875 = $56

1.6 Q1 + 0.875 Q2 = $56

So best answer made based on data available.

You might be interested in
The Hylands Hotels are liquidating their partnership. Before selling the assets and paying liabilities, the capital balances for
Georgia [21]

Answer:

Ia. Debit Cash $84,000

Credit Non-cash asset $75,000

Gain on sale $9,000

Ib. Debit Gain on sale $9,000

Credit Martha, capital $3,600

Credit Nathan, capita $3,600

Credit Orin, capital $1,800

Ic. Debit Accounts payable $36,000

Credit Cash $36,000

Id. Debit Martha, capital $48,600

Debit Nathan, capita $39,600

Debit Orin, capital $27,800

Credit Cash $116,000

IIa. Debit Cash $35,000

Loss on sale $40,000

Credit Non-cash asset $75,000

IIb. Debit Martha, capital $16,000

Debit Nathan, capital $16,000

Debit Orin, capital $8,000

Credit loss on sale $40,000

IIc. Debit Accounts payable $36,000

Credit Cash $36,000

IId. Debit Martha, capital $29,000

Debit Nathan, capita $20,000

Debit Orin, capital $18,000

Credit Cash $67,000

Explanation:

Ia. During the sale on non-cash asset, we debit the cash we received during the sale and credit the the non-cash asset and another credit of gain on sale. So we debit cash $84,000 credit Non-cash asset to remove it from the book in the amount of $75,000 and another credit of $9,000 gain on sale.

Ib. The gain we credited earlier will be allocated to the partners based on the profiy and loss sharing ratio.

Debit Gain on sale $9,000

Credit Martha, capital (9,000 x 2/5) $3,600

Credit Nathan, capital (9,000 x 2/5) $3,600

Credit Orin, capital (9,000 x 2/5) $1,800

Ic. To record payment to creditor, we simply debit Accounts payable in the amount of $36,000 and credit Cash in the same amount of $36,000.

Id. The cash subject for allocation is the remaining amount after we deduct the cash we paid to outside creditor plus the amount we received from the sale on non-cash asset.

Beginning cash $68,000 - $36,000 (payment to creditor) + $84,000 (cash received from sale of non-cash assets) = $116,000

$116,000 - (45,000 + 36,000 + 26,000) = $9,000

We now allocate the cash based on the capital balances of the partners and divide the excess based on the profit or loss sharing ratio.

Debit Martha, capital (45,000 + (9,000 x 2/5)   $48,600

Debit Nathan, capital (36,000 + (9,000 x 2/5)  $39,600

Debit Orin, capital (26,000 + (9,000 x 2/5)       $27,800

Credit cash    $116,000                  

IIa. During the sale on non-cash asset, we debit the cash we received during the sale and credit the the non-cash asset. The difference between Cash received and the value of an asset will be charged to gain or loss. So we debit cash $35,000 and another debit of loss on sale in the amount of $40,000 then credit Non-cash asset to remove it from the book in the amount of $75,000..

Ib. The loss we Debited earlier will be allocated to the partners based on the profit and loss sharing ratio.

$75,000 - $35,000 = $40,000

Debit Martha, capital (40,000 x 2/5) $16,000

Debit Nathan, capital (40,000 x 2/5) $16,000

Debit Orin, capital (40,000 x 2/5) $8,000

Credit loss on sale $40,000

Ic. To record payment to creditor, we simply debit Accounts payable in the amount of $36,000 and credit Cash in the same amount of $36,000.

Id. The cash subject for allocation is the remaining amount after we deduct the cash we paid to outside creditor plus the amount we received from the sale on non-cash asset.

Beginning cash $68,000 - $36,000 (payment to creditor) + $35,000 (cash received from sale of non-cash assets) = $67,000

$67,000 - (45,000 + 36,000 + 26,000) = ($40,000)

We now allocate the cash based on the capital balances of the partners and divide the losses based on the profit or loss sharing ratio.

Debit Martha, capital (45,000 - (40,000 x 2/5))   $29,000

Debit Nathan, capital (36,000 + (40,000 x 2/5))  $20,000

Debit Orin, capital (26,000 + (40,000 x 2/5))       $18,000

Credit cash    $67,000

7 0
3 years ago
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol
Len [333]

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

3 0
3 years ago
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you received your s
s344n2d4d5 [400]

Answer:

Final Value= $4,216,869

Explanation:

Giving the following information:

You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.2 percent per year. Your salary will increase at 3 percent per year throughout your career. Your salary is $52,000

Your retirement is in 40 years.

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A=annual payment= 5,200

i= 9.2% interest + 3% year increase= 12.2%

n=40

FV= {5,200*[(1.122^40)-1]}/0.122

FV= $4,216,869

6 0
3 years ago
Writing About Economics
enot [183]

Answer:

Russia and China used to be command economy with the property rights lying solely with the government and the means of production, except labour were owned entirelyby the government. However, the command economy demanded long term planning that needed to be ultra accurate.moreover the system it self gave rise ro bureaucracy and dictatorial regimes, increasing the power centralization and the state corruption and lessening the innovative spirit of the nation.

Capitalism got rid of most of the problems in the command economy. It was accompanied by the democratic reforms in Russia and this led to more transparency. Moreover, the capitalist style social market economy in China introduced private ownership and Entrepreneurship l along with the concept of state owned companies.

In addition, the function of the price mechanism was pivotal as well. Instead of thorough and detailed planning, the resources were distributed by the price and the market demand and supply.

Explanation:

4 0
3 years ago
Issuing a pre-approval letter means that borrowers have completed the loan application and provided their debt, total income, an
stiks02 [169]

Answer: underwriter

Explanation:

The loan underwriter is responsible for verifying the information provided by a borrower. They will then use this information to assess the risk that the lender is going to incur if they lend money to the borrower.

When this is done, a pre-approval letter is issued which shows the amount that the lender is willing to lend to the borrower.

4 0
3 years ago
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