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2 years ago

Marginal benefit ______.

1 answer:

4 0

Marginal benefit is the benefit received from consuming a good or service. A persons maximum amount they are willing to pay for another unit of good or a service is set as the marginal benefit. The marginal benefit for each person varies because what each person is willing to pay for an additional unit is subject to their own.

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The PTA is holding a raffle. The prize is a camera worth $200. Each raffle ticket costs $5. One hundred tickets are sold and a w

Illusion [34]

Expected value of the purchase of a ticket would be $3.00.

Explanation:

Given,

Raffle ticket costs = $5.00.

The prize = $200.

One hundred tickets are sold = 100 × 5

= $500.00

champ is drawn and given the prize of worth $200.

$500 - $200 = $300

So the normal estimation of the bought ticket = $3.00

The expected estimation of the acquisition of a ticket would be $3.00.

5 0

3 years ago

Read 2 more answers

Cheyenne Corp. had the following transactions that took place during the year:I.Recorded credit sales of $2250II.Collected $1350

Degger [83]

Answer:

The correct option is d) Decrease.

Explanation:

Free cash flow (FCF) can be described as the cash that is generated by a company after cash outflows required to support operations and maintain the capital assets of the company have been accounted for.

Therefore, FCF can be calculated by adjusting for non-cash expenses, changes in working capital, and capital expenditures to reconcile net income.

The total effect of these transactions on free cash flow can be determined by first calculating the account receivable for the year as follows:

Calculation of account receivable for the year:

Particular Amount ($)

Credit sales 2,250

Cash collected from the customer (1,350)

Sales returns (450)

Account receivable  450 

A partial free cash flow statement can therefore be prepared as follows:

Cheyenne Corp.

Free cash flow statement (Partial)

Particular Amount ($)

Net income xx

(Increase) decrease in non-cash current assets:

Increase in account receivable (450)

Free cash flow  (450) 

Since the free cash flow is negative or minus $450, it therefore implies that the total effect of these transactions on free cash flow is a decrease.

Therefore, the correct option is d) Decrease.

7 0

3 years ago

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows.

11111nata11111 [884]

Using the degree of operating leverage, the estimated impact on net operating income of a 5 % increase in sales is 6.45%.

The degree of operating leverage (DOL) measures how much a company's operating income varies in response to sales fluctuations.

The DOL ratio assists analysts in determining how changes in sales affect company earnings.

Because a company with high operating leverage has a high proportion of fixed costs, a significant increase in sales can result in significant changes in profits.

If sales increase by 5%, the calculation for increased Net Operating Income is as follows:

Increase in Net Operating Income = Sales Increase x Degree of Operating Leverage

= 5% x 1.29

= 6.45%

Hence, Using the degree of operating leverage, estimated impact on net operating income of a 5 % increase in sales is 6.45%.

Learn more about operating leverage:

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4 0

1 year ago

Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sol

Flura [38]

Answer: $200,000 and its economic profits were zero.

Explanation:

First and foremost, we should note that when calculating accounting profit, the implicit cost isn't taken into consideration.

Therefore, the accounting profit will be:

= Revenue - Explicit Cost

= (4000 × 300) - Explicit cost

= 1,200,000 - 1,000,000

= 200,000

Then, Economic Profit will be:

= Accounting profit - Implicit cost

= 200,000 - 200,000

Therefore, its its accounting profits were $200,000 and its economic profits were zero.

5 0

2 years ago

Selling price per unit is $68

kari74 [83]

Answer:

Income statement

Sales Revenue $ 612,000

Variable Overhead cost $ (315,000)

Fixed manufacturing overhead $ ( 126,000)

Gross Profit $ 171,000

Variable Operating expenses $ ( 27,000)

Fixed Operating expenses $( 93,000)

Net Income $ 51,000

Explanation:

Income statement

Sales Revenue ( 9,000 units * $ 68) $ 612,000

Variable Overhead cost ( 9,000 * $ 35 ) $ (315,000)

Fixed manufacturing overhead $ ( 126,000)

Gross Profit $ 171,000

Variable Operating expenses ( $ 3 * 9000 units) $ ( 27,000)

Fixed Operating expenses $( 93,000)

Net Income $ 51,000

4 0

2 years ago

Marginal benefit​ ______.

Marginal benefit ______.