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Orlov [11]
3 years ago
10

Vonda and Aleiyah are shopping together at the mall for new jeans. Vonda is willing to pay $90 and Aleiyah is willing to pay $50

for a pair of jeans. What is the gain in total consumer surplus when the price decreases from $59 to $40?
Business
1 answer:
emmasim [6.3K]3 years ago
8 0

Answer:

Total consumer surplus is $60

Explanation:

The consumer surplus is the gap between the maximum price that the consumer is willing to pay and the price the consumer actually pay.

In this case,

Vonda is willing to pay $90 and he actually pay $40

Consumer Surplus is $50

Aleiyah is willing to pay $50 ​ and he actually pay $40

Consumer Surplus is $10

To get Total consumer surplus,  we must add all

Total consumer surplus=$50+$10=$60

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Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $40,000 (
pickupchik [31]

Answer:

$36,000

Explanation:

Given that,

Book value of the equipment given up = $40,000

Fair value of the equipment given up = $27,000

Cash paid = $9,000

Hence,

Value of pickup trucks:

=  Fair value of the equipment given up + Cash paid

=  $27,000 + $9,000

= $36,000

Therefore, the amount of $6,000 will Calaveras value the pickup trucks.

3 0
3 years ago
Del gato clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. at the clo
inna [77]

Answer:

bank reconciliation:

bank balance $16,206

+ outstanding deposits $2,973

- outstanding checks ($3,091)

<u>- NSF checks ($0)                     </u>

adjusted bank balance $16,088

book reconciliation:

cash account balance $16,124

- bank fees ($45)

<u>+ error on check $698 - $689 = $9</u>

adjusted cash account balance $16,088

3 0
3 years ago
George had a previous balance on his credit card of $330.19 on which he paid $50.00. He
Svetllana [295]
Since it’s a credit card you must subtract 330.19-50.00 = 280.19 then with the fine you add 280.19+4.20= 284.39. So the new balance is $284.39
3 0
3 years ago
Sole Mates Inc. is planning a one-month campaign for July to promote sales of one of its two shoe products. A total of $100,000
Cerrena [4.2K]

Answer:

Sole Mates Inc.

Differential analysis:

                                        Tennis Shoe      Walking Shoe

Unit selling price                      $85                  $100

Unit production costs:

Direct materials                        $19                   $32

Direct labor                                  8                      12

Variable factory overhead          7                       5

Unit variable selling expenses   6                     10

Total variable costs                $40                   $59

Contribution margin per unit $45                   $41            

                                        Tennis Shoe      Walking Shoe   Difference

                                        Alternative 1       Alternative 2

Total contribution margin    $315,000         $287,000       $28,000

Advertising costs                  (100,000)          (100,000)                  0

Total income (loss)             ($215,000)          $187,000      $28,000

Promote the Tennis Shoes (Alternative 1) because it will bring in more contribution margin than Alternative 2.

Explanation:

a) Data and Calculations:

Budgeted advertising costs = $100,000

                                        Tennis Shoe      Walking Shoe

Unit selling price                      $85                  $100

Unit production costs:

Direct materials                        $19                   $32

Direct labor                                  8                       12

Variable factory overhead          7                        5

Fixed factory overhead             16                       11

Total unit production costs    $50                  $60

Unit variable selling expenses   6                     10

Unit fixed selling expenses     20                     15

Total unit costs                       $76                 $85

Operating income per unit      $9                   $15

3 0
3 years ago
Flounder Corp. uses a periodic inventory system and reports the following for the month of June. Date Explanation Units Unit Cos
iragen [17]

Answer:

Flounder Corp.

                                   Weighted Average      FIFO             LIFO

Ending Inventory              $1,414                   $1,580           $1,280

Cost of goods sold          $2,796                 $2,630          $2,930

Explanation:

a) Data and Calculations:

Date        Explanation      Units     Unit Cost     Total Cost

June 1     Inventory            100          $5               $ 500

June 12   Purchases         385            6                 2,310    

June 23  Purchases        200             7                 1,400

               Total units        685                            $ 4,210

June 30  Inventory          230

June 30  Units Sold        455  (685 - 230)

Weighted Average Cost = Total costs/Total units bought

= $4,210/685 = $6.146

Weighted Average:

Ending Inventory = $1,414 ($6.146 * 230)

Cost of goods sold = $2,796 ($6.146 * 455)

FIFO:

Ending Inventory  = (30 * $6) + (200 * $7) = $1,580

Cost of goods sold = (100 * $5) + (355 * $6) = $2,630

LIFO:

Ending Inventory = (100 * $5) + (130 * $6) = $1,280

Cost of goods sold = (200 * $7) + (255 * $6) = $2,930

The weighted average method is based on an average cost for estimating the cost of ending inventory and cost of goods sold.  The FIFO method assumes that goods bought initially are the first to be sold while the LIFO method assumes that goods bought last are the first to be sold.

6 0
3 years ago
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