Answer:
$29,050
Explanation:
The computation of the residual income is shown below:
Residual income = Net operating income - Minimum required income
= $83,000 - $53,950
= $29,050
Here
Minimum required income = Average operating assets × Minimum required rate of return
= $415,000 × 13%
= $53,950
This should be the answer and the options provided are wrong
Answer:
Price floor binding
b. price ceiling binding
price floor and binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The minimum price of milk is above equilibrium price. So, it is a binding price floor
The maximum price of milk is below equilibrium price. It is binding price ceiling
If teenagers can't find jobs due to minimum wages law. It means that the minimum wage must be above equilibrium price. This is because it is when price is above equilibrium price that supply of labour outstrips demand. So, it is a binding price floor
Answer:
It cost $5.84 to run the LED bulb for one year if it runs for five hours a day.
Explanation:
E = Pt
= (16W)(365*5)
= 29200Wh
= 29.2 kWh
cost of operation = E($0.2/kWh)
= (29.2 kWh)($0.2/kWh)
= $5.84
Therefore, It cost $5.84 to run the LED bulb for one year if it runs for five hours a day.
Answer:
16.64 days
Explanation:
Given the above information, we will calculate the average days to sell inventories with the formula below;
Average days to sell inventories = [Ending inventory / Cost of goods sold] × 100
Ending inventory = $72,000
Cost of goods sold = $432,800
Then, Average days to sell inventories
= [$72,000 / $432,800] × 100
= 16.64 days
Therefore, the average days to sell inventory for Fry are 16.64 days
Answer:
The solution is shown in the file attached below
Explanation:
