Answer:
Profits: $297,000
Explanation:
Revenue is the money generated by a business by selling its products and services to customers. Expenses are the cost incurred in the production and selling of goods and services.
Profits arise when revenues exceed expenses.
For Malinda Auto dealership, the revenue ($895,000) exceed expenses($598,000). Therefore, the business will realize a profit.
Profit = revenue - expenses
=$895,000 -$598,000
=$297,000
Answer:
Consumer surplus is $15.99.
Explanation:
Melanie decided to buy a coat priced $79.95.
When she brought a coat to the sales clerk, she found out that it is on a 20% discount and she has to $15.99 less than the original price.
This means that her consumer surplus is at least $15.99.
The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.
Melanie was willing to pay $79.95. But she actually paid $63.96. The difference between the two is $15.99.
Answer:
See below
Explanation:
The amount of direct labor cost incurred is computed as;
= $30,000/$70,000 × $2,000
= $857
Overhead applied in ending working in the ending inventory of work in process on July 31
= $15,000/$70,000 × $2,000
= $429
