No it’s still a 50/50 chance the product will even do good once it’s on the shelf because of its competitors
Answer:
The answer is: No, Charley is not maximizing his utility.
Explanation:
In order for Charley to maximize his utility he should be buying only additional soft drinks.
A soft drink has a marginal utility of $50 and it costs $3. For every dollar Charley spends on an additional soft drink his utility will be $16.67.
A pizza slice has a marginal utility of $30 and it costs of $2. So for every dollar Charley spends on an additional slice of pizza his utility will be $15.
Answer:
The correct answer is:
The organization is called
Financial Accounting Standards Board.
The guidelines are called
Generally accepted accounting principles
that the CPA will use to prepare Wholly Shirts financial statements.
Explanation:
The FASB is an organization that provides guidelines for financial reports. The mission of the Council for Financial Accounting Standards (FASB) is to establish and improve financial accounting standards and the way of reporting; using public education, including issuers, auditors and other users of financial information.
The generally accepted accounting principles are a set of rules and norms that serve as an accounting guide to formulate criteria related to the measurement of equity and to the information of the patrimonial and economic elements of an entity.
Answer: Amount should Jent report as gain on the sale of bonds : <em>$22000</em>
Explanation:
Given:
Bonds purchased at a discount of $10,000
Bonds sold at a premium of $14,000
Amortization of the discount amounted to $2,000.
Therefore, gain on the sale of bonds can be computed as:
Gains = (Cost + Premium) - (Cost - Carrying Cost)
∵ Carrying Cost = Purchasing Cost - Amortization
Carrying Cost = 10000 - 2000
Carrying Cost = $8000
∴ Gains = (10000 + 14000) - (10000 - 8000)
<u><em>Gains = $22000 </em></u>
Answer:
Option (d) $5,549.96
Explanation:
Data provided in the question:
Annual payments = $800
Time, n = 12 years
Discount rate, r = 7% = 0.07
Now,
PV2 = Annual payments × ((1 - (1 + r)⁻ⁿ)) ÷ r ) × (1 + r)
= $800 × ( (1 - ( 1 + 0.07)¹²)) ÷ 0.07) × (1 + 0.07)
PV2 = $6,354.15
Therefore,
Present value today = PV2 ÷ (1 + r )²
= $6,354.15 ÷ (1 + .07)²
or
= $5,549.96
Hence,
Option (d) $5,549.96