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AleksandrR [38]
3 years ago
7

Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.25 . Michelle was willing to pay up to $7.75 for the

cappuccino and Paul's Cafe and Bakery was willing to accept $0.75 for the cappuccino. Based on this information, answer the questions.
(a) Michelle's consumer surplus: $ ____
(b) Paul's Cafe and Bakery's producer surplus: $ ____

Business
1 answer:
Furkat [3]3 years ago
3 0

Answer:

a. Michelle's consumer surplus: $3.5

b. Paul's Cafe and Bakery producer surplus: $3.5

Explanation:

This one is simple I attached a graphic so you can understand me better:

The consumer surplus is just the difference between the price payed and the price willed to pay by the consumer, in this case the price payed was $4.25 but Michelle was willing to pay up to $7.75 so we just substract this numbers

7.75 - 4.25 = 3.5

Same for the producer surplus which is the difference between the price the consumer pay and the price that the producer was willing to accept.

4.25 - 0.75 = 3.5

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Answer:

$13,000 is the year-end balance in retained earnings for K and J Nursery, Inc.

Explanation:

Total Assets = Cash + Account Receivable + Inventory + Equipment

Total Assets = 35,000 + 30,000 + 44,000 + 99,000

Total Assets = 208,000

Total Liabilities = Account Payable + Salaries Payable + Interest Payable + Note Payable

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8 0
3 years ago
Someone please help me.
Elanso [62]
In my understanding, this assignment wants you to evaluate the decision made by the management officer, in her attempt to improve the business position.

First of all, net profit figure shows the profitability of the business. Net profit figure means the total profit earned minus all the costs incurred in running the business. Higher net profit figure in year 1 might indicate a favourable position, as it could be that higher profit is generated from using whatever method/machine they use in year 1, or running this machine incurred less cost. In year 2, they didn't necessarily earn lower profit, but running the new machine might be more costly.

Next, rate of productivity growth refers to the growth in quantity of output produced. If more output can be produced, this means higher efficiency. This means that the efficiency of production in year 2 is more than in year 1.

Thirdly, the number of customer's complaints is important in evaluating the business' goodwill, in this case, its position in the society. Without good relationship with the public, a company may lose its customer. It is always important to keep clients satisfied since they're the source of income to the business. This means that the management decision in year 2 is more favourable than in year 1.

Last but not least, rate of absenteeism can be evaluated in terms of productivity . Higher absenteeism means lower productivity, lower output but higher cost to the business since they're paying salaries to workers who don't produce output to sell. Less output to sell means less income can be earned. In year 1, the business productivity is higher than in year 2.

In year 2, the business has a boost in their efficiency & reputation. Although less profit earned, it is likely that this will grow in the future. Staff attendance can be improved by encouragement such as giving incentives for example, provision of more holidays.

I hope this is helpful!
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