Answer:
It will purchase 3 cans
total consumer surplus 0.70
Explanation:
the market price is 0.55
It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.
<u>consumer surplus:</u>
difference between the amounts he was willing to pay for each unit and the market price:
first can 0.95 - 0.55 = 0.40
second can 0.80 - 0.55 = 0.25
third can 0.60 - 0.55 = 0.05
total consumer surplus 0.70
Answer:
$22,750
Explanation:
Data provided
Fixed manufacturing overhead = $16,500
Units produced = 5,000
Variable manufacturing overhead = $1.25
The computation of the total amount of manufacturing overhead cost is shown below:-
Manufacturing overhead = Fixed manufacturing overhead + Variable manufacturing overhead
= $16,500 + (5,000 × $1.25)
= $16,500 + $6,250
= $22,750
Depreciation expenses=
(Purchase cost - Salvage Value)×depreciation rate×time
Calculate the depreciation rate
100%/6years=16.6667%
Time from July 1 to December 31 there are 6 months so the time would be 6/12months
So
Depreciation expenses is
(42,000−3,000)×0.166667×(6÷12)
=3,250....answer
Hope it helps!
Answer:
the cost to be assigned to the building is $288,000
Explanation:
The Costs of Land, Building and Equipment have to be determined separately due to the fact that their usage is different and hence depreciation charges are different.
The Appraisal value is used to apportion the cost of $450,000 to the Land, Building and Equipment as follows :
PPE Item Appraised Value
Land $100,000
Building $320,000
Equipment $80,000
Total $500,000
Apportionment of Cost to Building :
Building = $320,000/ $500,000× $450,000
= $288,000
