Answer:
a. a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
Explanation:
Diminishing returns In economics is the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.
Due to the fire outbreak, the owner will continuously try to increase her manual effort (labor) into the business, which at a point will overwhelm her remaining capital, leading to the decrease in the marginal productivity of what's left of her capital.
Answer:
In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.
Answer:
$7.2 million
Explanation:
For computing the amount paid for the goodwill, first we have to calculate the fair value of the net asset which is shown below:
The fair value of net asset = Fair value of Midwest's assets - fair value of Midwest's liabilities
= $14.3 million - $2.5 million
= $11.8 million
And, the acquisition price of the outstanding stock is $19 million
So, the goodwill would be
= $19 million - $11.8 million
= $7.2 million
Answer:
1 $126
2 $140
3 90%
Explanation:
1. Overhead applied = Closing balance of job - (opening balance of job + prime cost added to the job during the month
= $1,921 - ($1,235 + $560)
= $1,921 - $1,795
= $126
2. Direct labor for job 46 for July.
Direct labor = prime cost / ( 3 parts of direct materials + 1 part of direct labor)
Direct labor = $560 / 4
Direct labor = $140
Therefore, direct labor for job 46 for July is $140
Direct materials for job 46 for July
= Direct labor cost × 3(This is due to the fact that prime cost includes 3 parts of direct materials
= $140 × 3
= $420
3. Overhead rate for the company
= [($126 / $140) × 100
= 90%
I will use a debit card because my parents add my allowance to my checking account. Other possible payment decisions I can make are to use a check.
