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Ivahew [28]
3 years ago
15

As a consumer you believe yourself to act rationally, optimally and self-interestedly. You like ice cream and value a pint at $7

. Usually you buy a pint each week at $4. This week however, the price jumped to $5 a pint. What would you do? a. ​buy the ice cream since the price is still below your maximum willingness to pay b. ​buy the ice cream since even at the new price it gives you a positive amount of consumer surplus c. ​not buy the ice-cream since the price is now higher d. ​both A&B
Business
1 answer:
enyata [817]3 years ago
8 0

Answer:

both A&B

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

A rational consumer would always purchase a good if the price of the good is below the consumer surplus.

When tue price was $4, the consumer surplus is $7-$4=$3

When the price is $5, the consumer surplus is $7-$5=$2

The consumer should still purchase the good since the consumer surplus is still postive.

I hope my answer helps you

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Answer:

$22,800

Explanation:

Calculation for the total amount of indirect manufacturing cost incurred

First step is to find the fixed manufacturing overhead portion

Fixed manufacturing overhead portion=$3.00 *5000 units

Fixed manufacturing overhead portion =$15,000

Second step is to calculate the indirect manufacturing cost if 6,000 units are produced using this formula

Indirect manufacturing cost =Fixed manufacturing overhead portion

+ Variable portion

Let plug in the formula

Indirect manufacturing cost=$15,000 + ($1.30*6,000 units)

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8 0
3 years ago
Morris company applies overhead based on direct labor costs. For the current year, morris company estimated total overhead costs
spin [16.1K]

Answer:

At year-end, factory overhead is $21,000

Explanation:

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Predetermined overhead rate = ($404000 / $2020000) = 20%*Direct labor costs

Hence, Applied overhead costs= (20% * $1,810,000)

Applied overhead costs=$362000.

Hence balance in factory overhead account at year end = $383,000 - $362,000  

=$21,000.

8 0
3 years ago
The slope of the investment demand function indicates how sensitive investment is to changes in real interest rates. The 'steepe
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The correct answer is false.

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7 0
3 years ago
On December 31, 2020, Ayayai Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Ayay
Fiesta28 [93]

Answer:

Ed Abbey Co. (Ayayai Co.)

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1. December 31, 2020:

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Credit Consulting revenue $296,600

To record consulting services performed on account.

December 31, 2020:

Debit Notes receivable $296,600

Credit Accounts receivable $296,600

To record the acceptance of notes.

December 31, 2021:

Debit Interest receivable $35,592

Credit Interest revenue $35,592

To accrue interest on notes receivable.

December 31, 2022:

Debit Interest receivable $35,592

Credit  Interest revenue $35,592

To accrue interest on notes receivable.

Debit Cash $367,784

Credit Notes receivable $296,600

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To record the full settlement of principal and interests.

Explanation:

a) Data and Analysis:

December 31, 2020: Accounts receivable $296,600 Consulting revenue $296,600

December 31, 2020: Notes receivable $296,600 Accounts receivable $296,600

December 31, 2021:

Interest receivable $35,592 Interest revenue $35,592

December 31, 2022:

Interest receivable $35,592 Interest revenue $35,592

Cash $332,192 Notes receivable $296,600 Interest receivable $35,592

8 0
3 years ago
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