<u>Answer: </u>
Benefits are amplified at a point where the minor income efficiency (MRP) is equivalent to the expense of employing a security watch. In this way, a benefit expanding firm will enlist as long as the MRP is more noteworthy than the wages or the expense of recruiting a security monitor.
On the off chance that I need to amplify benefit, at that point I won't enlist the security monitor at a compensation pace of $20 in light of the fact that the expense of recruiting is more noteworthy than the expansion to the complete income or MRP, which is equivalent to $15 (expecting that the security watchman will kill shoplifting).
The above examination shows that a security watchman will be paid a compensation rate for every hour, which is equivalent to the sum spared every hour by the security monitor for wiping out the normal shoplifting every hour.
The sum spared is an expansion to the all out income, and no benefit boosting firm would pay a compensation rate higher than the augmentations to the complete income.
Answer:
B. We will not disclose any advice provided under the terms of this engagement letter to third parties unless instructed to do so
Explanation:
Audit engagement letter is a document issued by an auditor when having to take a new client. This letter serves as contract which contains what is expected from both parties. It is a legal document that can serve as evidence in a law court although it is considered less formal. This document contains procedures and guidelines of engagement.
Answer:
94,000
Explanation:
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
( $644,000 - $28,000) / 28,000 = 22
1 = 22 x 8000 = 176,000
2= 22 x 10,000 = 220,000
3 22 x 7000 = 154,000
Book value = cost of asset - accumulated depreciation
$644,000 - (176,00 + 220,000 + 154,000)
Answer:
The correct option which would not be an expected response from decrease in price level is A) with fall in prices, Fargo concrete company has decided to let go workers who have fixed price contracts.
Explanation:
All the options except A are expected response from the fall in price and helps in explaining why the aggregate demand curve shifted ( towards the right ) . In the option B , Tyler decided to remodel his kitchen because of fall in prices, as now he is able to spend more on consumption and investment activities. Same thing is happening in option C and D as the company's here are increasing their investment spending due to the decreased prices.
But the option A , isn't something that was expected as company's don't usually fire their workers just because they have fixed price wage contract and prices have fallen, company is trying to take advantage of fallen prices by reducing the fixed wage workers and hiring new workers on a cheap wage , which help in reducing the company's cost.
