Answer:
Stella should consume less of milk and more of cookies to maximize total utility.
Explanation:
The price of cookies is $9, and the price of milk is $3.
Stella consumes 10 cookies and 5 cartons of milk.
The marginal utility of 10th cookie is 50 utils and the marginal utility of 5th carton of milk is 25 utils.
Her total utility will be maximized if the ratio of marginal utility and price will be equal for both cookies and milk.
Ratio for cookies
= 
= 
= 5.55
Ratio for milk
= 
= 
= 8.33
Since the ratio is higher for milk, it means that Stella should consume less of milk and more of cookies to maximize total utility.
Answer:
True
Explanation:
The reason why every business exists is to make a profit. Hopefully businesses will be able to make a profit by selling products or services that satisfy the needs of their customers. The problem with higher profits is that they are always associated with higher risks, and business owners and investors are risk averse.
Business owners and managers will continually search for ways to increase their profits while keeping the risks as low as possible. This includes choosing organizational layouts and forms that might help them increase their profits while reducing risks or at least keeping them under a certain level.
Answer:
Amount of Dividend that was just paid is $1.39
Explanation:
Dividend yield = Dividend for next period / Current price
Dividend for next period = 44 * 3.3%)
=$1.452
Hence, dividend that was just paid=Dividend for next period*Present value of discounting factor(rate%,time period)
= 1,452 / (1+0.046)
= 1.452 / 1.046
= 1.3881
= $1.39
Answer:
$3,135 unfavorable
$9,937.50 unfavorable
Explanation:
The formula and the computation of the direct labor price and efficiency variance is shown below:
Direct labor price variance
= (Standard rate - Actual rate) × Actual hours of production
= ($15- $145,600 ÷ 9,500 hours ) × 9,500 labor hour worked
= ($15 - $15.33) × 9,500 labor hour worked
= $3,135 unfavorable
Labor efficiency variance is
= (Actual production - standard production) × standard rate per unit
= (6,600 units - 9,500 hours ÷ 1.6 hours) × $15
= (6,600 units - 5,937.0) × $15
= $9,937.50 unfavorable
Since the actual hours is more than the standard one so it would lead to unfavorable variance
Answer:
D) = $3,927
Explanation:
<em>The cost of a product is the addition of direct material cost + direct labour cost + manufacturing overheads</em>
<em>Overhead absorption rate</em><em> = </em><em>Budgeted Overheads/ Budgeted machine hours</em>
= $45,000/100,000 hours
= $0.45
<em>Product cost</em><em> </em>= 2,000 + 400 + (0.45× 900)
= $2,805
<em>Bid price</em> = Product + ( mark up)
= 2,805 + (40% × 2,805)
= $3,927
<em>Bid price</em> = $3,927
