Answer:
B. each customer's reservation price.
Explanation:
Reservation price is the highest amount a buyer would be willing to pay for a good or service.
I hope my answer helps you
Answer:
Finished goods = $85,800
Ending inventory = $5,280
Explanation:
beginning WIP 400 units
$11,080
8000 units started
$80,000
units finished and transferred out = 8,000 + 400 - 600 = 7,800
ending inventory 600 units
80% complete
equivalent units = 7,800 + (600 x 80%) = 8,280
total costs = $91,080
cost per equivalent unit = $91,080 / 8,280 = $11
Finished goods = 7,800 x $11 = $85,800
Ending inventory = 480 x $11 = $5,280
Total debt ratio is the ratio of total debt to total assets
i.e
Total debt ratio = Total debt / Total assets
But Total assets is nothing but total equity plus total debt
Now let us consider,
TD = Total debt
TE = Total equity
TA= Total assets
Therefore,
Total debt ratio = TD/TA
But as mentioned above
TA = TD + TE
total debt ratio = Total debt/(total debt+total equity)
total debt ratio = .34(given)
.34 = TD / (TD + TE)
Solving this equation yields:
0.34 = 1/(1+ TE/TD)
0.34(1+TE/TD) = 1
0.34 + 0.34TE/TD =1
.34(TE/TD) = 1 - 0.34
0.34 (TE/TD) = 0.66
0.34TE = 0.66TD
Now, Debt equity ratio is the ratio of Total debt to total equity
Debt-equity ratio = TD / TE
Debt-equity ratio = 0.34 / 0.66
Debt-equity ratio = 0.51515152
Answer:
Effect on income= $2,500 increase
Explanation:
Giving the following information:
Contribution margin= $44
The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 200*44 - 6,300
Effect on income= $2,500 increase
