Answer:
D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.
Explanation:
Let's check the utility that Susie gets from consuming these products.
The second round of golf gives her 20 units of satisfaction at $20 = 20/20 = 1
The third massage gives her 30 units of satisfaction at $30 = 30/30 = 1
But now the price the price for massage has come down to $15. The ratio of their prices would be
20/15 = 1.333
1.3 is greater than 1
So she should substitute golf for massages
Answer:
Not sure but I think is B. again not sure
Explanation:
Answer:=Jones recognizes $386.9 as interest
Explanation:
Fiscal year ending July 31st
there are 23 days between when the cash as issued ie July 8 and the end of the fiscal year on July 31st
Given amount or Principal amount = $75,700
Rate= 8%
Interest = Principal x Rate x Time
$75,700 x 8% x 23/360=$75,700 x 0.08 x 23/360
=$386.9
Jones recognizes $386.9 as interest in the current fiscal year.
Answer:
I don't know the answer to that question sorry
<span>Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000
1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000
Sales = Variable expenses + Fixed expenses + Profit
$120Q = $80Q + $50,000 + $10000
$40Q = $60000
Q = $60,000 /$40
Q =1500 Units
2. Using the format method, solve for the unit sales that are required to earn a target profit of $15,000
Sales = 50000+15000/120-80 = 1625 units.
Mauro Products distributes a single product, a woven basket whose selling prices are $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200.
1. Solve for the company’s breakeven point in unit sales using the equation method.
Sales = Variable expenses + Fixed expenses + Profit
$15Q = $12Q + $4,200 + $0
$3Q = $4200
Q = $4200 /$3
Q =1400 Units
2. Solve for the companies breakeven point in sales dollars using the equation method and the CM ratio.
X = 0.8X + 4,200 + $0
0.2X = $4200
X = $4200 / 0.2
X = $21,000
CM ratio method
BEP = fixed cost /Sales-Variable cost /Sales = 4200/15-12/15 = $21000
3. Solve for the company’s breakeven point in unit sales using the format method
4200/15-12 = 1400 units.
4. Solve for the company’s breakeven point in sales dollars using the format method and the cm ration.
BEP = fixed cost /1-Variable cost / Selling price = 4200/1-12/15 = $21000
CM ratio method
BEP = fixed cost /Sales-Variable cost /Sales = 4200/15-12/15 = $21000</span>
