Answer:
Consumers would not keep buying ice cream at $2.75 because after purchasing a certain amount of ice cream, utility would be maximised and consumers would not value ice cream at $2.75 anymore. Consumers would not purchase a product it the marginal utility that would be derived from consuming the product is less than the price.
According to the law of diminishing marginal utility, as more units of a product is increased, total utility increases but at a decreasing rate.
Explanation:
Marginal utitiy is the increase in utility that is derived from consuming one more unit of a product.
Answer:
Some environmentalists believe the allowances give firms a license to pollute.
Explanation:
It is very easy "to buy a permission" to pollute instead of change the cause of this pollution.
Answer:
The answer is B.
Explanation:
Option B. Wages of sales person are the example of a Selling and Administrative cost. Other examples are rents, distribution cost etc.
Option C is wrong. Wages of production machine operators is a direct wage. It will form part of cost of sales.
Option D is wrong. Insurance on factory equipment cannot be attributable to selling cost.
Answer:
The debt to equity ratio is 30.81%
Explanation:
The computation of the debt equity ratio is shown below:
ROE = Profit margin × Asset turnover × equity multiplier
17.2% = 7.6% × 1.73 × (1 + debt ÷ equity)
17.2 ÷ 13.148 = (1 + debt ÷ equity)
1.308184 = (1 + debt ÷ equity)
So, after solving this,
hence, The debt to equity ratio is 30.81%
We simply applied the Dupont analysis and the same is to be considered
