Answer:
(C) $94.00
Explanation:
The computation of the cost of goods sold for the sale of May 20 is shown below:
= Remaining units × cost price + remaining units × cost price
= 4 units × $15 + 2 units × $17
= $60 + $34
= $94
The 4 units come from May 1 and May 10 i.e 9 units - 5 units = 4 units
And on May 20, the 6 units were sold out of which 4 units were sold at price of $15 and rest 2 units were sold at a price of $17
Answer:
The producer is experiencing diminishing marginal product.
Explanation:
The law of diminishing return explains that every additional unit consumed will have less utility/return than the previous one. Same is the case with labor productivity. The first unit of labor will yield maximum return, every additional unit will result in lesser return/productivity than the previous unit. The will continue up to the point of maximum return. After that point adding additional resources will yield less total output.
Answer:
Net income 167,800
Explanation:
The net income will be determinate by the difference of the revenues and revenues:
Service revenue 300,000
Salaries expense 81,000
Rent expense 48,000
Utilities expense 3,200
Total expenses <u> 132,200 </u>
Net income 167,800
If provided with a tax rate, that value would be the earnigns before taxes (EBT)
We should also calculate the income tax and then, subtract the income tax to get the net income
<span>Let us first find out how much of the prepaid subscriptions has been used up during the reporting year. $1548 is for 36 months. So the monthly rate of subscription charges will be 1548/36 = 43. During the reporting year, subscription charges are paid only for 9 months( from April to December) So the amount to be debited to subscription charges = 43 * 9 = 387. Subscription charges will be debited with $ 387 and prepaid subscriptions account will be credited with the same amount. The remaining amount, 1548-387=1161, will remain in prepaid subscriptions account as a debit balance.</span>
