Answer: MRP or the Marginal Revenue Product is the addition to total revenue when one more unit of a product is produced and sold in the market. It can be calculated using the given formula,
Therefore, MRP for the twelfth worker will be,
which is total revenue at 12th worker minus total revenue for the 11th worker.
Answer:
C. A lowball price
Explanation:
A lowball price is a price that a buyer of a commodity sets far below what the the seller proposes. It is a deliberate attempt of reducing the bid price for the purpose of negotiations.
The buyer does not actually expect the seller to agree to the low price but is using this as a means of pushing the negotiation in his favour.
In the given scenario when a salesperson sets a price that is too high, the buyer can set a low ball price in response. When negotiation is over price will most likely be within the buyer's preferred range or lower.
This method is more effective if the seller wants to urgently sell goods.
Answer:
the current provision for income tax is $507,900
Explanation:
The computation of the current provision for income tax is shown below:
= (Income before income tax + temporary difference - depreciation expense) × effective income tax rate
= ($2,760,000 + $246,000 - $974,400) × 0.25
= $507,900
Hence, the current provision for income tax is $507,900
The same would be considered and relevant
Answer:
$42,680 under applied
Explanation:
The computation is shown below:
First, Calculate the predetermined overhead rate per hour which equals to
= (Estimated Overhead cost ÷ estimated machine hours)
= ($175,100 ÷ 25,600 hours)
= $6.84 per hour
So, the applied overhead equals to
= Predetermined overhead rate per hour × actual machine hours
= $6.84 per hour × 20,500 hours
= $140,220
So, the over/under applied overhead equals to
= Applied overhead - actual overhead
= $140,220 - $182,900
= $42,680 under applied
