Question Completion:
We assume that the variable manufacturing cost is $55 per unit.
Answer:
The change in operating income = $60,000
Explanation:
a) Data and Calculations:
Special order = 3,000 units
Price of special order = $75 per unit
Variable cost per unit (assumed) = $55
Fixed costs = unchanged
Variable marketing and administrative costs = unchanged
The change in operating income = $60,000 (($75 - $55) * 3,000)
b) Given the above scenario and the assumed variable cost per unit of $55, the change in operating income will be a total of $60,000, which adds to the normal business of the company.
Answer:
showing change in a community’s average median age over a century
showing how the world’s shark population has changed over 50 years.
comparing the number of men and women who earned engineering degrees in a decade
Explanation:
<span>D. The product is a necessity.</span>
Answer:
$1,551,222.84
Explanation:
We should assume the interest are implicity charged in the note payments.
In order to record the equipment at their fair value at the momnet of purchase, we will discount the note using 11% discount rate
The note will be an annuity for $500,000 during 4 year at rate 11%
C 500000
time 4
rate 0.11
PV
This is the value of the equipment at present value, without the interest charged on the note.
Under this value it should be recorded.
Answer:
C) an increase in the nominal price of the other good while the price of the good itself remains constant.
Explanation:
Relative price is the price of a good relative to the price of another good. It is also known as real price.
Nominal price is the price of a good in money terms.
Let's assume the price of bread is $5 and the price of a frame is $7. The relative price is $5 / $7 =0.7 and the nominal prives are $5 and $7. Assume:
1. That the price of bread rises to $10 And the price of a frame rises to $8. The relative price rises from 0.7 to 1.25.
2. That the price of bread remains constant and the price of frames fall to $5. The relative price becomes 1.
3. Assume frames rise to $8 while bread remains $5. The relative price becomes 0.625.
4. Assume bread decreases To $4 And frames decrease to $3. The relative price becomes 1.3.
It is only the third scenario that doesn't increase the relative price of bread.
I hope my answer helps you.
