Answer:
E) A is higher, and F is lower.
Explanation:
If the farmer is risk averse, he tends to always take the decision which will minimize risk.
His financial assets (A) are not affected by floods, so the higher they are, less likely he will be to pay for flood insurance.
If P is the likelihood of a flood happening, the lower the risk P, then the lower the willingness to pay for flood insurance will be.
If F is lower, then the farmer is unlikely to spend money insuring the farm.
Therefore, analyzing the answer choices, the only that fits the above description is E) A is higher, and F is lower.
Answer:
Bob has $7 dollars now.
Explanation:
b = Bob's original amount of money ($x$ dollars)
p = Pat's original amount of money
"If Pat gives Bob a dollar, Bob will have twice as many dollars as Pat."
b + 1 = 2(p-1)
b + 1 = 2p - 2
b = 2p - 2 - 1
b = 2p - 3
"If Bob g Pat a dollar instead, they both will have the same number of dollars."
p + 1 = b - 1
p = b - 1 - 1
p = b - 2
In the first equation replace p with (x-2)
b = 2(b-2) - 3
b = 2b - 4 - 3
b = 2b - 7
7 = 2b - b
7 = b
Answer:
Decrease by $10,640
Explanation:
The unused capacity ordinarily will not change the fixed component of cost but will increase the variable cost hence the net income increase or decrease is know as net contribution margin. However, given the fixed cost as a unit cost, it will be affected by the offer of accepted.
Net income is the result of sales less cost where the cost is made of the fixed and variable portions.
Net income increase/(decrease)
= 23.1 (3800) - 3800(17.9 + 8)
=3800( 23.1 - 25.9)
= ($10,640)
Accepting the offer will result in a decrease in net income
Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
Answer:
2.79 quarters, so almost 3 quarters or 9 months
Explanation:
We write the equation, and solve it. To solve for x, as x is an exponent, we must use logarithms.