Answer:
be positive, negative, or zero
Explanation:
Marginal utility is the additional utility derived from consuming one more unit of a good
the consumption decision is to consume more units of a good that gives the higher utility per good.
Marginal utility = change in total utility / change in units consumed.
When marginal utility is positive, it means that increasing consumption by one unit increases total utility
When marginal utility is negative, it means that increasing consumption by one unit decreases total utility
When marginal utility is zero, total utility has reached its maximum and no more units of goods would be consumed
An example of marginal utility. Imagine a traveller arriving from the desert where he hadn't had a drink of water in days .he is offered his first glass of water. the first cup of water he drinks would give him the highest utility. As more and more cups of water is drank, marginal utility decreases. At the point where he is fully satisfied, he stops drinking water and marginal utility becomes zero.
Answer:
The answer is: D) $5,500
Explanation:
To calculate the change in working capital we use the following formula:
Change in working capital = change in current assets - change in current liabilities
Since we don't know the current assets or liabilities from previous years, we can consider them to be 0.
Change in working capital = current assets - current liabilities
Change in working capital = $8,000 (inventory) - $2,500 (accounts payable)
Change in working capital = $5,500
Answer:
$114,000
Explanation:
Given that,
Net credit sales = $2,250,000
Opening allowance for Doubtful Accounts = $36,000
Uncollectible accounts receivable written off = $90,000
Firstly, we need to find the excess amount to be adjusted to allowance for Doubtful Accounts. It is calculated as follows:
= Uncollectible accounts receivable written off - Opening allowance for Doubtful Accounts
= $90,000 - $36,000
= $54,000
Allowance amount:
= 10% of the balance in receivables
= 0.1 × $600,000
= $60,000
Therefore, the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017 is determined by summing up the excess amount and allowance amount.
= Excess amount to be adjusted to allowance for Doubtful Accounts + Allowance amount
= $54,000 + $60,000
= $114,000
Answer:
$1,050 favorable
Explanation:
The computation of the fixed overhead budget variance is shown below:
= Actual fixed overhead - budgeted fixed overhead
where,
Budgeted fixed overhead is
= $3.75 × 1,400 units
= $5,250
And, the actual fixed overhead is $4,200
So, the fixed overhead budget variance is
= $4,200 - $5,250
= $1,050 favorable
Since the budgeted fixed overhead is more than the actual one so it would be favorable
