Answer:
the rate of commission is 8%
Explanation:
The computation of the rate of commission is shown below:
Rate of commission is
= Commission received by the broker ÷ Sale value of the home
where,
The Commission received by the broker is $13,200
And, the sale value of the home is $165,000
Now put these values to the above formula
So, the rate of commission is
= $132,00 ÷ $165,000
= 8%
Hence, the rate of commission is 8%
Answer:
1. The prepaid insurance account shows a debit of $5,280, representing the cost of a 2-year fire insurance policy dated August 1 of the current year.
- Dr Insurance expense 1,100 (= $5,280 x 5/24 months)
- Cr Prepaid insurance 1,100
Five months of insurance expense must be recorded for August - December.
2. On November 1, Rent Revenue was credited for $1,800, representing revenue from a subrental for a 3-month period beginning on that date.
- Dr Rent revenue 600 (= $1,800 x 1/3 months)
- Cr Unearned revenue 600
Rent revenue corresponding to January cannot be recorded as earned yet, so it must be recorded as unearned revenue (liability).
3. Purchase of advertising materials for $800 during the year was recorded in the Advertising Expense account. On December 31, advertising materials of $290 are on hand.
- Dr Advertising supplies (or materials) 290
- Cr Advertising expense 290
Unused advertising material is considered an asset that can be used during the next period, the same as any other supplies.
4. Interest of $770 has accrued on notes payable.
- Dr Interest expense 770
- Cr Interest payable on notes payable 770
Accrued interest must be recorded as an expense during the period in which it occurs (accrual principle).
<span>Price = $130.00
First, express q in terms of p by solving for q the equation p = 220 -3q. So
p = 220 - 3q
p - 220 = -3q
-p/3 + 220/3 = q
Now the total profit will be pq - 40q. Simplify and substitute the equation above for q. So
pq - 40q
q(p-40)
(-p/3 + 220/3)(p-40)
-p^2/3 + 40p/3 + 220p/3 - 8800/3
-p^2/3 + 260p/3 + 8800/3
Now since you want the maximum value, that will be where the root(s) of the first derivative of the above expression is 0, so calculate the first derivative.
-p^2/3 + 260p/3 + 8800/3
-2p/3 + 260/3
And solve for 0
-2p/3 + 260/3 = 0
260/3 = 2p/3
260 = 2p
130 = p
So the best price for maximum profit is 130.
Let's verify that.
130 = 220 - 3q
130 + 3q = 220
3q = 90
q = 30
So at that price point, the monopolist will make
30(130-40) = 30(90) = 2700 profit.
Let's verify that by checking the price for 29 and 31 units to see if the profit is reduced for both cases.
Trying 29 units.
p = 220 - 3q
p = 220 - 3*29
p = 220 - 87
p = 133
And calculating the new profit.
29(133-40) = 29(93) = 2697 profit.
So there's less profit at a higher price. Now try for 31 units.
p = 220 - 3q
p = 220 - 3*31
p = 220 - 93
p = 127
And calculating the new profit.
31(127-40) = 31(87) = 2697 profit.
And there's less profit at a lower price as well.</span>
Answer: The company should not buy the new equipment
Explanation:
For the 1st case:
Revenue = Selling price × Number of units
= 1 × 30000
= $30,000
Total cost = Fixed cost + Variable cost
= 14000 + (0.5 × 30000)
= 14000 + 15000
= $29000
Profit = Revenue - Cost
= $30000 - $29000
= $1000
For the 2nd case:
Revenue = Selling price × Number of units
Revenue = Selling price × Number of units
= 1 × 50000
= $50,000
Total cost = Fixed cost + Variable cost
= 20000 + (0.6 × 50000)
= 20000 + 30000
= $50000
Profit = Revenue - Cost
= $50000 - $50000
= $0
Based on the calculation above, the company should not buy the new equipment as no profit will be made while currently a profit of $1000 is made.
Answer:
Consider the following calculations
Explanation:
According to this general formula
f1,k = [(1+rk+1)k+1/((1+r1)]1/k -1
f1,1 = [(1+ 4.9%)1+1/((1+4.4%)]1/1 -1 = 5.40%
f1,2 = [(1+ 5.6%)2+1/((1+4.4%)]1/2 -1 = 6.21%
f1,3 = [(1+ 6.4%)3+1/((1+4.4%)]1/3 -1 =7.08%