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3 years ago

Marginal utility is the: select one:

Business

1 answer:

garri49 [273]3 years ago

3 0

Marginal utility is the <u>"change in total utility obtained by consuming one more unit of a good".</u>

Marginal utility evaluates the additional satisfaction a customer earns from consuming extra units of products or services. The idea of marginal utility is utilized by economists to decide the amount of a thing buyers are happy to buy. Positive peripheral utility happens when the utilization of an extra thing builds the total utility, while negative marginal utility occurs when the utilization of an extra thing diminishes the total utility.

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Which one of the following is not correct? For debt issued at par: interest expense reported on the income statement equals the

coldgirl [10]

Answer:

The answer is For debt issued at a discount; interest expense reported on the income statement equals cash interest less amortization of the discount

Explanation:

Effective interest method is an accounting practice used to discount a bond. This method is used for bonds sold at a discount; the amount of the bond discount is amortized to interest expense over the bond's life. As a book value increases, the amount of interest expense increase.

3 0

3 years ago

In a certain city last year, sales of treadmills were 50,000 units. Exercise Unlimited had a market share of 75 percent, followe

Alla [95]

<u>Answer:</u>

<em>Rico sporting goods sold 8500 treadmills last year. </em>

<u>Explanation:</u>

If total sales of treadmills were 50,000 then the 3 major companies hold the market share with different rates. The Rico sporting goods market share is 17% which means last year it sold 17% of total sales. Therefore $50,000 \times 17%$ =8500.

Hence, The Rico sporting goods share in the total sales is 8500. Therefore, it can be said that the sales of last year of each company is 37,500 8500 and 4000 respectively.

4 0

3 years ago

Zachary Company currently produces and sells 6,800 units annually of a product that has a variable cost of $18 per unit and annu

hichkok12 [17]

Answer:

Zachary Company

a. Selling price per unit = $70

b. Contribution Margin Income Statement, assuming that Zachary invests in the new production equipment:

Sales Revenue $476,000

Variable cost ($16 * 6,800) 108,800

Contribution $367,200

Fixed costs ($276,600 + 9,700) 286,300

Net income $80,900

Explanation:

a) Data and Calculations:

Annual production and sales = 6,800 units

Variable cost per unit = $18

Total variable cost = $122,400 ($18 * 6,800)

Fixed costs = $276,600

Total cost = $399,000 ($122,400 + $276,600)

Annual profit earned = $77,000

Therefore, sales revenue = $476,000 ($399,000 + $77,000)

Selling price per unit = $70 ($476,000/6,800)

4 0

3 years ago

If the price of steak rises, a consumer who had been maximizing his or her utility before will buy less steak because its?

Naddik [55]

If the price of steak rises, a consumer who had been maximizing his or her utility before will buy less steak because its "marginal utility to price ratio is now lower than for other items."

<h3>What is marginal utility?</h3>

In economics, marginal utility is the optimum quality or benefit (utility) which a buyer receives by purchasing an additional units of a product or service.

Some key features regrading the marginal utility are-

The concept means that the utility and benefit of an extra unit of a product to a consumer is proportional to the quantity of units of such a product he currently owns.
The given example shows marginal usefulness.
The marginal value of one piece of bread provided to a family of seven will be considerable, because the family will be less hungry, as well as the difference between 7 and 8 is proportionally significant.
A extra bread slice supplied to a family with 30 slices, on the other hand, has less marginal utility so because difference among 30 & 31 is proportionally lower and the family's hunger has already been satisfied.
Thus, as a consumer of a product purchases further and more of the commodity, his marginal utility drops until he has no need for any extra units at all.
The marginal utility then is equal to zero.

To know more about the marginal utility, here

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5 0

2 years ago

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operat

11111nata11111 [884]

Answer:

199.02 units

Explanation:

The computation of the economic order quantity is shown below:

Data provided in the question

Annual demand per year = 5,750 units

The Cost of each units = $96

The inventory carrying cost per unit per year = $9

The average ordering cost per order = $31

So, economic order quantity is

$= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

$= \sqrt{\frac{2\times \text{5,750}\times \text{\$31}}{\text{\$9}}}$

= 199.02 units

Hence, the economic order quantity is 199.02 units

3 0

3 years ago