Answer:
The effect on net operating income would be an increase of $137,900
Explanation:
Giving the following information:
Selling price $85
Variable expenses per unit $ 35
If Price Paper spends an additional $12,100 on advertising, sales volume should increase by 3,000 units.
To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:
Effect on income= 3,000*(85 - 35) - 12,100= $137,900
The total amount of traceable fixed manufacturing overhead for Alpha and Beta will be $3332000 and $3689000.
<h3>How to compute manufacturing overhead? </h3>
From the information given, the traceable fixed manufacturing overhead for Alpha will be:
= 119000 × 28
= $3332000
The traceable fixed manufacturing overhead for Beta will be:
= 119000 × 31
= $3689000
Learn more about overhead amount on:
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Answer:
c. $ 760,000
Explanation:
For computing the cost of goods manufactured, we have to use the formula which is shown below:
Cost of goods manufactured= Beginning work in process + manufacturing cost - ending work in process
= $125,000 + $835,000 - $200,000
= $760,000
Beginning work in process + manufacturing cost is called total work in process for a given period
Answer:
Because it is (a.) neither excludable nor rival in consumption, a tornado siren is a public good.
Explanation:
A tornado siren is an outdoor warning system that alert the public about an impending tornado danger, and thus expects the people to be prepared for an emergency, tune in to news for further directives or immediately seek safer shelter from impending tornado.
It does not exclude anyone for any reason and neither does it creates rivalry in consumption for the public usage. It is a straight forward alert that optimizes safety for all and sundry.
It is known as the Prospect Theory Effect.
Prospect Theory is the tendency to feel stronger negative emotions than positive emotions when losing something of value. It is an assumption that losses and gains have different values even if they are really both equal. For an instance, there are two options presented- one shows potential gains and the other shows possible losses. The former option will be chosen because the probability of gain is perceived greater.
