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4 years ago

A utility‐maximizing consumer buys so as to make ________ for all pairs of goods.

Business

1 answer:

Lady_Fox [76]4 years ago

4 0

MUx / MUy = Px / Py is the right answer

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On December 31, a $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for $1,455,000.

Novay_Z [31]

Answer:

Explanation:

The journal entry is shown below:

Bonds Payable A/c Dr. $1,500,000

Loss on Redemption of Bond A/c Dr. $25,100

To Discount on Bonds Payable A/c $70,100

To Cash A/c $1,455,000

(Being the redemption of the bond is recorded)

The loss on redemption of bond would be

= $1,455,000 + $70,100 - $1,500,000

= $25,100

7 0

3 years ago

O'Neill, Incorporated's income statement for the most recent month is given below. The marketing department believes that a prom

Nesterboy [21]

Answer:

$1,800

Explanation:

Here Decrease or increase can be calculated as under:

Increase in Revenue $15,000

Increase in Variable Cost (72k / 100k * $15,000) ($10,800)

Increase in Promotional Cost ($6,000)

Net Operating Income Decrease ($1,800)

Hence the decrease in Net Operating Income would be by $1,800.

Note: As the complete question is not provided and is not found online, almost similar question was picked from the internet. So make sure you account for of the differences.

The Numerical section of the question is given as under:

8 0

3 years ago

Hubert lives in San Francisco and runs a business that sells boats. In an average year, he receives $842,000 from selling boats.

aev [14]

Answer:

Explicit costs are normal costs of operating a business.

Implicit costs are opportunity costs meaning that they are the benefits foregone by engaging in a certain course of action.

The wholesale cost for the pianos that Hubert pays the manufacturer ⇒ EXPLICIT COST.

The salary Hubert could earn if he worked as an accountant ⇒ IMPLICIT COST.

The wages and utility bills that Hubert pays ⇒ EXPLICIT COST

The rental income Hubert could receive if he chose to rent out his showroom. ⇒ IMPLICIT COSTS

Accounting Profit = Revenue - Explicit costs

= 842,000 - 452,000 - 301,000

= $89,000

Economic Profit = Revenue - Explicit costs - Implicit costs

= 842,000 - 452,000 - 301,000 - 38,000 - 48,000

= $3,000

If Hubert's goal is to maximize his economic profit, he should stay in the piano business because the economic profit he would earn as an accountant would be -$3,000.

Economic profit as accountant = Salary + rental income - accounting profit from piano

= 48,000 + 38,000 - 89,000

= -$3,000

6 0

3 years ago

Modern companies tend to deal with many different suppliers in order to avoid problems that can arise when one supplier is unabl

Romashka-Z-Leto [24]

The answer to the question is false.

6 0

3 years ago

The Open Grill incurred the following costs in acquiring a new piece of land:Cost of the land $ 80,000. Commissions 4,800.Liabil

rodikova [14]

Answer:

Explanation:

we are to calculate the total land cost recorded in this question;

To get the cost recorded we do the following;

Cost of land recorded = cost of land + commissions + cost of removing existing building - sale of salvaged materials on land

cost of land recorded= 80,000+ 4,800 + 20,000 - 4,000 = $100,800

8 0

4 years ago

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