Answer:
$90,000
Explanation:
Data provided in the question:
Net cash provided by operating activities = $430,000
Average current liabilities = $300,000
Average long-term liabilities = $200,000
Dividends paid = $120,000
Capital expenditures = $220,000
Purchase of treasury stock = $22,000
Payments of debt = $70,000
Now,
Trent's Free cash flow
= Net cash provided by operating activities - Capital expenditures - Dividends paid
= $430,000 - $220,000 - $120,000
= $90,000
Answer and Explanation:
a) rent income from sarah's vacation house will not affect her AGI, because according to rules if vacation house is used fewer than 15 days, in that case it is treated as a personal house and its expenses and income have not effect on the AGI. only the mortgage interest and property yax will be deducted from AGI.
b) only the mortgage interest and property yax will be deducted from AGI. other expenses are non-deductible from AGI because these are treated as personal expenses.
Answer:
Job 334 total cost: $ 8,400
Unit cost: 8,400 / 200 = $ 42
Explanation:
Total cost: Material + Labor + Overhead
Material: 5,000
Labor: 2,400
<u></u>
<u>Overhead:</u>
We distribute the expected cost over the expected base:
expected cost: 100,000
cost driver: 40,000 labor hours
cost per hour: 100,000 / 40,000 = <u>2.5 predetermined overhead</u>
Now we multiply this rate by the hours of the job to know Applied Overhead:
job labor hours x overhead rate:
Job #334 had 2,400 labor cost / $6 rate per hour = 400 hours
400 x 2.5 = 1,000
Total cost: 5,000 + 2,400 + 1,000 = 8,400
Answer:
False
Explanation:
In a competitive market, if production (and consumption) continues until the marginal benefit of one more unit equals marginal cost, then total surplus is maximized.
As for any extra unit produced
Marginal Benefit > Marginal cost = Surplus
Marginal Benefit = Marginal cost = No Surplus / No loss
Marginal Benefit > Marginal cost = loss
When your Marginal benefit is maximum and Marginal cost is minimum then the surplus will be maximized.
Most efficient situation in which benefit is maximum and the cost is minimum results in maximized surplus.
Answer:
A) R(x) = 120x - 0.5x^2
B) P(x) = - 0.75x^2 + 120x - 2500
C) 80
D) 2300
E) 80
Explanation:
Given the following :
Price of suit 'x' :
p = 120 - 0.5x
Cost of producing 'x' suits :
C(x)=2500 + 0.25 x^2
A) calculate total revenue 'R(x)'
Total Revenue = price × total quantity sold, If total quantity sold = 'x'
R(x) = (120 - 0.5x) * x
R(x) = 120x - 0.5x^2
B) Total profit, 'p(x)'
Profit = Total revenue - Cost of production
P(x) = R(x) - C(x)
P(x) = (120x - 0.5x^2) - (2500 + 0.25x^2)
P(x) = 120x - 0.5x^2 - 2500 - 0.25x^2
P(x) = - 0.5x^2 - 0.25x^2 + 120x - 2500
P(x) = - 0.75x^2 + 120x - 2500
C) To maximize profit
Find the marginal profit 'p' (x)'
First derivative of p(x)
d/dx (p(x)) = - 2(0.75)x + 120
P'(x) = - 1.5x + 120
-1.5x + 120 = 0
-1.5x = - 120
x = 120 / 1.5
x = 80
D) maximum profit
P(x) = - 0.75x^2 + 120x - 2500
P(80) = - 0.75(80)^2 + 120(80) - 2500
= -0.75(6400) + 9600 - 2500
= -4800 + 9600 - 2500
= 2300
E) price per suit in other to maximize profit
P = 120 - 0.5x
P = 120 - 0.5(80)
P = 120 - 40
P = $80
