Answer:
A. Debit Income Summary $41,300; credit Expense accounts $41,300
Explanation:
At the end of the period, the revenue and expenses for the company are closed into the income summary account which in turn is closed into the retained earnings account.
For revenue, the entries are debit revenue and credit income summary with the revenue for the year. For expenses, credit expenses and debit income summary with the total expense for the year.
As such, given that Total revenues for the period are $58,200, total expenses are $41,300, and dividends are $10,200, the correct closing entry for the expense accounts is
Debit Income Summary $41,300
Credit Expense accounts $41,300
Answer:
$336.60 per unit
Explanation:
The computation of selling price per unit is given below:-
For computing the selling price per unit first we need to follow some steps which is shown below:-
Total fixed costs = Fixed overhead costs + Fixed selling and administrative costs
= $679,000 + $114,000
= $793,000
Fixed cost per unit = Total fixed costs ÷ Number of units expected to be produced
= $793,000 ÷ 12,200
= $65 per unit
Total costs per unit = Direct materials + Direct labor + Variable overhead + Fixed cost per unit
= $122 + $52 + $67 + $65
= $306
Now,
Selling price per unit = Total cost per unit × (1 + Markup)
= $306 × (1 + 10%)
= $306 × 1.1
= $336.60 per unit
Answer:
An isoquant is a curve that shows the least-cost combinations of inputs that can produce a given level of output.
Explanation:
- Isoquants are lines of equal values that are meant to show a set of points that have the same quantity of output when changing the quantities of more than two inputs.
- It also shows an extent to which the firm has the ability to substitute two or different products to attain the same level of the outputs.
Answer:
Mark's individual consumer surplus is $10.
Explanation:
Mark and Rasheed are at the bookstore buying new calculators for the semester.
Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator.
The price for a calculator at the bookstore is $65.
The consumer surplus is the difference between the maximum price that a consumer is willing to pay and the price he actually has to pay.
Mark's individual consumer surplus
= Price mark was willing to pay - Price he actually has to pay
= $75 - $65
= $10
Answer:
A.
Explanation:
Allocative efficiency is when the markets are working in the most economically efficient manner and there are no externalities (no over production or under production of economic goods and services).
Markets are allocative efficiency when the price equals the marginal cost.
Allocative efficiency is at an output which maximizes total consumer welfare.
is reached when no one can be made better off without making someone else worse off.
Occurs when the value that consumers place on a good or service (reflected in the price they are willing and able to paid) equals the cost of the factors resources used up in production.
