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navik [9.2K]
3 years ago
7

Adhira buys chocolates and almonds. She has 3 bars of chocolates and 4 bags of almonds. The marginal utility of the third chocol

ate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18. Is Adhira maximizing her utility?
Business
1 answer:
Zanzabum3 years ago
6 0

Answer:

Cannot be determined

Explanation:

If the marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18.

For it to be determined if Adhira is maximizing her utility, we need to compare the different units of utility per product to the individual prices of the product.

The Utility Maximization rule states that <u>consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility</u>.

It is marginal utility per dollar spent that is equalized. and not absolute utility.

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Andy Company had a cash balance on May 1 of $ 30,000. At the end of​ May, the cash balance has increased to $ 33,000. During the
PIT_PIT [208]

Answer:

The correct answer is A

Explanation:

The Cash payments for the month of may is computed as:

Cash payment = Cash balance on May 1 + Cash received  during the month - Cash balance increased

where

Cash balance on May 1 is $30,000

Cash received  during the month is $47,000

Cash balance increased  is $33,000

Putting the values above:

Cash payments = $30,000 + $47,000 - $33,000

= $77,000 - $33,000

= $44,000

4 0
3 years ago
Babcock Company purchased a piece of machinery for $36,000 on January 1, 2019, and has been depreciating the machine using the s
pogonyaev

Answer:

<u>Requirement 1:</u>

Dr Accumulated Depreciation $9,600

Cr Retained Earnings  Account      $9,600

<u>Requirement 2:</u>

Dr Depreciation Expense $6,000

Cr Accumulated Depreciation $6,000

Explanation:

Year  Remaining Life of machine  Depreciation fraction

1                               5                                           5/15

2                              4                                           4/15

3                              3                                           3/15

4                              2                                           2/15

5                          <u>    1     </u>                                       1/15

Total                       15  

Now here, the depreciation formula is as under:

Depreciation expense = (Cost - Salvage Value) * Fraction value

<u>Year 2019:</u>

The sum of years digit fraction would be 5/15 and the cost of the machinery is $36,000. So

Depreciation Expense = ($36,000 - 0) * 5/15  = $12,000

<u>Year 2020:</u>

The sum of years digit fraction would be 5/15 and the cost of the machinery is $36,000. So

Depreciation Expense = ($36,000 - 0) * 4/15  = $9,600

<u>Year 2021:</u>

Now in this year the there is change in estimate and a switch in the use of the depreciation method, which is now straight line method. The change in estimate only includes the useful life of the asset which is 6 years from the date of purchase.

So for straight-line depreciation:

Depreciation Expense = (Cost - Salvage Value)  / Useful Life

By simply putting values, we have:

Depreciation Expense = $36,000 / 6 years = $6,000 per year

So this means, according to change in accounting policy, the excess depreciation charged must be eliminated from the previous years. The depreciation charge for the previous 2 years must be $12,000 and the excess depreciation charge is calculated as under:

Carrying value of the asset = $21,600 - $12,000  = $9,600

<u>Requirement 1:</u>

The double entry according to the US GAAP, for the excess depreciation charge in the previous years would be the waiving off of retained earnings with the excess depreciation amount calculated above.

Dr Accumulated Depreciation $9,600

Cr Retained Earnings  Account      $9,600

<u></u>

<u>Requirement 2:</u>

The depreciation expense for the year 2021, would be recorded as under:

Dr Depreciation Expense $6,000

Cr Accumulated Depreciation $6,000

3 0
3 years ago
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies E
NemiM [27]

Answer:

$85

Explanation:

Costco Medical Supply's inventory:

                   Surgical Eq - Surgical Supp - Rehab Eq - Rehab Supp

Selling price     $260                  $100           $340               $165

Cost                  $170                     $90           $250              $162

Costs to sell     $30                      $15              $25                 $10

If we apply the net realizable value rule, the value of surgical supplies would be:

NRV = $100 = $15 = $85

the NRV is also the lower of cost since $85 < $90

6 0
3 years ago
Instant Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information fo
Afina-wow [57]

Answer:

a. $21

b. $1,890,000

Explanation:

a. The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated  computer hours)

= $2,100,000 ÷ 100,000 hours

= $21

b. Now the applied overhead which equals to

= Actual computer hours  × predetermined overhead rate

= 90,000 hours × $21

= $1,890,000

5 0
3 years ago
The marketing department at your company has promised your customers that the next software release will show a 1.66-fold perfor
timurjin [86]

Answer

The answer and procedures of the exercise are attached in the images below.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.  

4 0
3 years ago
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