Answer:
The answer is: If Allen is a professional gambler, he can use his gambling losses to offset the income from his gambling activities.
Explanation:
We can consider the airfare and hotel expenses as income part of Allen's income (+$3,000) but since he lost more money in the casino (-$25,000), the net effect is an economic loss (-$22,000).
That economic loss isn't tax deductible unless he was a professional gambler, then he could offset his income by $22,000.
Answer:
1. $240
2. 12.5%
3. $168.75
Explanation:
1. Total cost per unit = Variable cost per unit + Fixed cost Per unit
= $150 + $90
= $240
Where ;
Variable costs per unit = Direct material +Direct labor + Overhead + Selling
= $100 + $25 + $20 + $5
= $150 per unit
Fixed costs per unit = Total fixed cost / Number of units produced
= ($470,000 + $105,000 + $325,000) / 10,000 units
= $900,000 / 10,000
= $90 per unit
2. Mark up percentage on Total cost = Mark-up / Total cost *100
= $300,000 / $2,400,000 * 100
= 12.5%
Where;
Total cost = Total cost per unit * Number of units produced
= $240 * 10,000 units
= $2,400,000
3. Selling price = Total cost per unit + Mark up
= $150 + ($150 * 12.5%)
= $150 + $18.75
= $168.75
Marginal analysis is really important for a firm. Marginal analysis helps a firm to determine the most equitable allocation of a firm’s resources.
EXPLANATION:
Marginal analysis is an assessment of additional benefits of a firm activity, compared to the additional costs which are incurred by the exact same firm’s activity. A firm or company applied marginal analysis to make a decision which helps a firm to maximize the potential profits and benefits. The example of marginal analysis is when the firm’s cost to produce one more appliance or the profit gained by adding one more worker.
In microeconomics, marginal analysis is applied to analyze how a compound system being influenced by marginal manipulation of its comprising variables. On this occasion, the marginal analysis focuses on investigating the results of small changes as the consequences cascade across the business as a whole. The goal of marginal analysis is to investigate whether the costs associated with the change in activity will affect in a benefit which is sufficient enough to offset a firm. The whole impact of marginal analysis is on the cost of producing an individual unit which is most often observed as a comparison’s point.
LEARN MORE:
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
1. Marginal analysis helps to? brainly.com/question/3318349
2. A command economy tends to exist under a brainly.com/question/10877298
KEYWORDS: marginal analysis, economy analysis
Subject: Business
Class: 10-12
Sub-chapter: Marginal Analysis
Answer: The Answer IS A.
Explanation: fail to Intersect
Answer:
B. Business models focus on specific aspects of a business, while business strategies focus on how different aspects affect the whole business.
