Answer:
a. $(3,881)
Explanation:
Gain on sale of fixed assets is an income. To be included in the operating section of the cash flow statement, we need to deduct the gain. The disposal of the fixed assets will go to the investing section. As the gain of the sale of assets is already added to the net income in the income statement, it will be deducted to make the accounting procedure transparent. Therefore, <em>option A</em> is correct.
Answer:
His total economic profit for the year was –$1,000. The right answer is b.
Explanation:
In order to calculate the total economic profit for the year, we have to use the following formula:
Total economic profit = total revenue - total explicit cost - implicit cost =
Acording to the data:
Total Revenue=$100,000
Total explicit cost= ($3,000×12)+($2,000×12)+($500×12)=$ 66,000
implicit cost= $ 35,000
Hence, Total economic profit= $100,000 - $66,000 - $35,000 = -$1,000
Answer:
TFC : Horizontal Line parallel to X axis
TVC : Upward sloping inverse S shape curve from origin
TC : Upward sloping increase S shape curve, with Y axis intercept = TFC
Explanation:
Total Fixed cost [TFC] is the total production expenditure, done on fixed factors of production (Eg - on machine, building etc). It is incurred even at zero level of output, stays same (constant) irrespective of output level. So, it's curve is a constant horizontal line.
Total Variable Cost [TVC] is the total production expenditure, done on variable factors of production (Eg - on raw material). It is zero at zero level of output, directly related to level of output thereafter. It first increases at a decreasing rate, then increases at an increasing rate. So, it's curve is inverse S upward sloping curve from origin.
Total Cost [TC] is the total cost incurred on all factors of production (fixed & variable). It is sum of TVC & TFC. As TFC is constant at all levels of output, TC changes due to change in TVC. So, TC is also directly related to output level, first increases at increasing rate & then at decreasing rate. Hence, it is also a inverse S upward sloping curve. But, it also includes constant TFC. So, the curve has intercept on Y axis = TFC (it doesn't start from origin).
The rate suggested via the means of p2 on the graph to gain equilibrium needs to be decreased.
<h3>What is equilibrium?</h3>
Equilibrium is the nation wherein the marketplace delivers and calls for stability from each other, and as a result, costs grow to be stable.
Generally, an over-deliver of products or offerings causes costs to head down, which leads to better call for—while an under-deliver or scarcity of products causes costs to head up, resulting in much less call for.
The balancing impact of delivery and call for outcomes in a nation of equilibrium. The equilibrium rate is the rate at which the delivery of products fits the call for.
When a primary index studies a length of consolidation or sideways momentum, it could be stated that the forces of delivery and call for are tremendously the same and the marketplace is in a state of equilibrium.
So, from the above statement, it is clear that, it needs to be decreased, is the right answer.
Learn more about Equilibrium, refer to:
brainly.com/question/13458865
franchise
Explanation:
right granted to an individual or group to the market for a business goods or services within a certain area