Answer:
$240
Explanation:
The computation of cash flow from operating activities of Felix company is seen below;
= Net income - Decrease in plant and machinery + decrease in expense - increase in deferred assets + gain on sale of assets
= $300 - $40 + $20 - $5 + $35
= $240
Therefore, cash flow from operating income of Felix company is $240
The point at which it is no longer advantageous to buy in bulk is known as marginal. It is the incremental increase in a benefit to a consumer caused by the consumption of an additional unit of good.Marginal benefits normally decline as a consumer decides to consume more and more of a single good.
Answer:
$281,612
Explanation:
Plane Operating Cost = Fixed cost + (Variable cost per unit1 × q1) + (Variable cost per unit 2 × q2)
Plane Operating Cost = $40,190 + ($2709*88) + ($10 * 303)
Plane Operating Cost = $40,190 + $238,392 + $3,030
Plane Operating Cost = $281,612
So, the plane operating costs in the planning budget for August would be $281,612
Answer:
Break Even Point
In Units = 2,000 units
In value = $80,000
Explanation:
Break even Point = ![\frac{Fixed\ Cost}{Contribution}](https://tex.z-dn.net/?f=%5Cfrac%7BFixed%5C%20Cost%7D%7BContribution%7D)
When we use contribution per unit, we get the break even point in units sales.
When we use the contribution margin as a percentage of sales we get break even sales in value.
Contribution per unit = $20
Contribution margin in percentage = $20/$40 = 50%
Therefore, Break even Point in units = ![\frac{40,000}{20} = 2,000](https://tex.z-dn.net/?f=%5Cfrac%7B40%2C000%7D%7B20%7D%20%3D%202%2C000)
Break even units = 2,000
Break Even Point in value = ![\frac{40,000}{0.50} = 80,000](https://tex.z-dn.net/?f=%5Cfrac%7B40%2C000%7D%7B0.50%7D%20%3D%2080%2C000)
Sales to be made in value at break even = $80,000
Explanation:
Over the past several decades, advances in technology, greatly reduced the cost of making computers which resulted in the decline of the equilibrium price of computers and also resulted in increased equilibrium quantity. The reduction in the computer prices also caused an increase in the consumer surplus.
computer price down -> equilibrium price down
computer price down -> equilibrium quantity up
computer price down -> consumer surplus up
The producer surplus increases due to increase in quantity and at the same time producer surplus decreases due to decrease in price.
computer price down -> producer surplus down
computer quantity up -> producer surplus up