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horsena [70]
3 years ago
5

So why it is a ration decision to make sure the marginal benefits outweighs the marginal costs? (Be detailed, you can use exampl

es.)​
Business
1 answer:
Rzqust [24]3 years ago
6 0

Answer:

For the business to make profits

Explanation:

Marginals revenue is the additional income realized from the sale of an extra unit. It is the revenue that a firm will gain by selling one more unit of a product or service.

Marginal cost is the expense incurred in the production of one more unit of a product.  A business compares marginal revenue to marginal cost to decide if it will cease or continue with production and selling activities.

For a business to continue selling and make profits, marginal revenue must be greater than the marginal cost. In other words, the revenue realized by selling one extra unit must exceed the cost of producing that item. Selling one more unit when the marginal cost is more than the marginal revenue will result in a loss.

If the marginal revenue from a computer is $40 and the marginal cost is $50,  selling on extra computer results in a loss of $10. But if the marginal revenue from the same computer is $60, the sale on one more unit will be a gain of $10.

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Novak Company took a physical inventory on December 31 and determined that goods costing $190,000 were on hand. Not included in
Lorico [155]

Answer: $237070

Explanation:

The amount that Novak should report as its December 31 inventory will be:

Inventory in hand = $190,000

Add: Goods bought from Pelzer Corporation = $25,170

Add: Cost of goods sold to Alvarez Company = $21900

Total = $237070

The amount that Novak should report as its December 31 inventory will be $237070

8 0
3 years ago
Norton, Inc. has the following information available for September 2020.
bulgar [2K]

Answer: See explanation

Explanation:

a. Prepare a CVP income statement that shows both total and per unit amounts.

CVP INCOME STATEMENT

Per unit. Total

Sales (500 units). 400. 200,000

Variable expense 280 140,000

Contribution margin. 120 60,000

Fixed expense. 48,000

Net operating Income. 12,000

b. Compute Norton's breakeven in units.

Breakeven point = 48000 / 120 = 400

c. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

CVP income statement for the break-even point

Per unit. Total

Sales (400 units). 400. 160,000

Variable expense 280 112,000

Contribution margin. 120 48000

Fixed expense. 48,000

Net operating Income. 0

3 0
3 years ago
From 1970 to 1998 the U.S. dollar a. gained value compared to the German mark because inflation was higher in the U.S. b. gained
yawa3891 [41]

Answer:

lost value compared to the German mark because inflation was lower in Germany

Explanation:

Inflation is a persistent rise in the general price levels

Types of inflation

1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect  

If inflation of the currency of a country increases relative to that of another country, the value of that currency decreases

8 0
3 years ago
Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of busines
Citrus2011 [14]

Answer:

See below

Explanation:

Given the above information, the adjusted cash balance should be;

Cash book balance

$67,209

Add:

Interest earned

$45

Less;

Bank fees

($30)

Adjusted cash book

$67,224

Bank balance

$63,949

Add:

Deposit in transit

$6,050

Less:

Outstanding checks

($2,675)

Adjusted bank balance

$67,324

7 0
3 years ago
Maurice bought 25 shares of stock at $9.85 per share and sold them for $11.22 per share.
AveGali [126]
What's the question? This is just a statement.
5 0
3 years ago
Read 2 more answers
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