Answer:
The business manager should assume that the building expense is fixed.
Explanation:
Fixed costs are not correlated with the revenue levels. Within the relevant range, fixed costs remain constant. They do not vary with the activity levels as variable costs do. For example, a manufacturer must pay for rent, repairs and maintenance, and utility bills irrespective of the revenue levels at which it is operating. This is why the business manager always discovers that the building expense each month does not correlate with the revenue levels, unlike the product's variable costs.
Answer:
B) $4.67
Explanation:
By definition marginal revenue is the revenue generated by the sale of one more unit of product Z.
Marginal revenue = unit price
Since firm X participates in a perfectly competitive market, it is a price taker, and since the marginal revenue is constant, we can assume that this is the equilibrium price of product Z.
Answer:
Entries are given
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
DEBIT CREDIT
A. Kacy Spade, owner, invested cash in the company
Common stock 14250
Cash 14250
B. The company purchased office supplies
Office supplies 413
Cash 413
C.The company purchased office equipment on credit
Office equipment 7880
Payables 7880
D.The company received $1,681 in cash
Cash 1681
Fees earned 1681
E. The company paid $7,880 cash to settle the payable
Payables 7880
Cash 7880
F. The company billed a customer $3,021 as fees
Receivable 3021
fees earned 3021
G. The company paid $520 cash for the monthly rent.
Rental expense 520
Cash 520
H. The company collected $1,269 cash as partial payment
Cash 1269
Receivables 1269
I. The company paid a $1,000 cash dividend to the owner
Retained earnings 1000
Cash 1000
