Answer:
George buys 5 bags of cookies each month
Explanation:
Given
(per gallon)
(per bag)
Required
Determine the number of bags of cookies he buys
First, we need to determine the marginal utility of cookies
To solve this, we make use of the following formula:
Substitute values for
<em>MU of Milk = 4</em>
<em>Cost of Milk = 2</em>
<em>Cost of Cookies = 4</em>
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This gives:
From the given table:
The corresponding bags of cookies for marginal utility of 4 is 5
Hence:
George buys 5 bags
$122,000 is Shulster's net income
To find the net income, subtract expenses and taxes from the gross income.
380,000 - 210,000 - 48,000 = 122,000
Answer:
171,000 dollars is the answer.
Explanation:
1. ($998,000 - $964,000 = $34,000)
2. $205,000 - $34,000 = $171,000
He should lease the car he is not going to need it for a long tme
Answer:
Assets will be overstated and Net Income understated
Explanation:
The effect on the balance sheet and income statement
<u>Balance Sheet :</u>
Inventory will be overstated
Inventory belongs to the Current Asset group
Meaning Assets will be overstated
<u>Income Statement :</u>
Inventory will be overstated
This reduces cost of sales with an amount greater
Meaning Profits will be overstated
Conclusion
The effect on the balance sheet and income statement would be : Assets will be overstated and Net Income understated.
