Answer:
The correct answer is letter "A": Those who are unwilling or unable to pay for the good do not obtain its benefits.
Explanation:
The excludability feature of goods does not allow individuals to have access to them without having paid for them. Thus, non-excludable goods are those that no one cannot prevent its use. <em>Private goods</em> (clothing, vehicles, houses) are excludable but they are also considered rival goods since when one person uses it another individual cannot consume the goods.
Answer:
$1.45
Explanation:
Data provided in the question
Variable cost per component = $1.45
Full cost = $1.91
Selling price per component = $4.95
By considering the above information, the lowest price that would be accepted for the component is equal to the variable cost per unit i.e $1.91 and plus the full cost includes both the variable and fixed cost plus the fixed cost would be recovered by normal sale also
So in this case we only considered the variable cost per component
The answer: an agency relationship
Answer:
$1,420
Explanation:
The computation of the bad debt expense is shown below:
As we know that
Ending balance of allowance for uncollectible accounts = Beginning balance of allowance for uncollectible accounts + bad debt expense - written off amount
$1,280 = $1,325 + bad debt expense - $1,465
So, the bad debt expense for the year 2022 is $1,420
Basically we applied the above formula to find out the bad debt expense
Variable cost is directly proportional to production output while fixed cost is constant regardless of production level. For Wesson company, the 12 % increase in sales can only affect the unit variable cost. Its relationship can be seen in the variable cost ratio. Variable cost ratio compares the variable cost to total revenue. Variable cost ratio is one factor that determines profitability.
