Answer:
An easement in gross is an easement that benefits an individual or a legal entity, rather than a dominant estate.
Explanation:
Any easement that benefits an individual or a legal entity, rather than a dominant estate is referred to as easement in gross.
Answer:
substitution and income effects will counteract each other totally
Explanation:
A labor supply curve is an economic analysis tool that shows the number or workers that are available to work or that can work at various wage rates.
The labor supply curve can either be bending backwards or sloping downwards or upward curving but it shows the relationship between labour and wage rates.
A labor supply curve can be affected by factors such as population, changes in social behaviour, opportunities in other markets, among other things.
From the above question, it is seen that a change in wage rate for Anthony from $25 to $29 does not affect his work hours positively of negatively. His work hours is the same despite the increase in hourly wage.
The effect of the Anthony sticking to 40 hours of work despite an increase in wage, which could have served as some motivation for him to put in more hours is his labor curve remains same. An increase in wage has done noting to affect the number of hours he works and as such his income vs work rate counters each other.
Cheers.
When the bonds will mature, the company will receive, maturity value plus the interest earned on the bonds.
The maturity value will be the par value, as nothing is given, the bonds are redeemed at par value i.e. $ 46,000.
The interest income will be calculated as -
Interest Income = 7 % * $ 46,000 = $ 3,220
Thus, the total cash proceeds = $ 46,000 + $ 3,220 = $ 49,220
Answer:
1a.
Magic Realm, Inc.,
Contribution format income statement
Per Unit Amount
Sales 62 2,207,200
Variable expenses 42 (1,495,200)
Contribution margin 20 712,000
Fixed expenses (623,000)
Net operating profit 89,000
1b.
Degree of operating leverage: 4
2. The expected percentage increase in net operating income for next year: 184%
Explanation:
1a. Please refer to the answer part
1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.
2.
Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%
Answer:
The conditions under which each funding method for paying for IT system expenses would be recommended are:
Allocation method is preferred to other methods when actual usage cannot be captured but, some other cost drivers can be used as the allocation bases.
Chargeback method works better than others when actual usage by each unit can be accurately captured.
Explanation:
The Allocation Funding Method charges IT costs to individuals, departments, or business units based on revenues, number of employees, and other cost drivers and not based on usage. It is often used when actual usage cannot be recorded.
The chargeback method charges IT costs to individuals, departments, or business units based on their actual usage of the IT services. With wide variation in IT usage, business units need to be charged their actual costs consumed.
The corporate budget method allocates IT cost based on a periodic predetermined rate. It is used where unit managers need to be given control over their budgets, enabling them to search for cost-saving technologies.
