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3 years ago

A baker knows that her customers will pay $5 for a loaf of bread, but if the marginal

Business

1 answer:

schepotkina [342]3 years ago

8 0

Answer: Sell at lower price

Explanation:

Marginal Utility is the amount of satisfaction that her customers will get with every additional unit of bread purchased.

If the marginal utility decreases, her customers will buy less bread because to them, it is not as valuable anymore. If she offers her bread at lower prices, the customers would buy more because the new price will align with the lower utility the customers get from the additional loaves.

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On January 10, 2022, Sweet Acacia Industries sold merchandise on account to Tompkins for $8,380, terms n/30. On February 9, Tomp

VARVARA [1.3K]

Answer and Explanation:

The Journal entry is shown below:-

1. Accounts receivable Dr, $8,380

To sales revenue $8,380

(Being credit sales is recorded)

For recording the credit sales we simply debited the accounts receivable and credited the sales revenue)

2. 7% Notes receivable Account Dr, $8,380

To Accounts receivable $8,380

(Being settlement with the account is recorded)

For recording the settlement with the account we simply debited the 7% Notes receivable and credited the accounts receivable.)

5 0

3 years ago

Jane has discovered that she is bored and frustrated working for others. She wants to open a business where she alone will have

kicyunya [14]

Answer:

sole proprietorship

Explanation:

By far the most common type of business in the US is the sole proprietorship. Basically, Jane will be her own boss. She will be responsible and liable for all the business's obligations since a sole proprietorship is considered a pass through entity. That means that it doesn't exist by itself, and it is not taxed directly. Jane must report all the income and expenses from her business in her annual tax report.

3 0

3 years ago

Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta

katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase = $16,529

PV cost of Leasing = $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price $32,780

less Federal tax credit ($7,500)

Charging station 2,200

less 50% tax credit (1,100)

Cash paid $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78

6 0

3 years ago

A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves

BlackZzzverrR [31]

Answer:

$11.98

Explanation:

A share of common stock just made a dividend payment of $1.00

The expected long-run growth rate of for this stock is 5.4%

= 5.4/100

= 0.054

The investors required rate of return is 14.2%

= 14.2/100

= 0.142

The first step is to calculate the dividend year 1(D1)

D1= Do(1+g)

= 1(1+0.054)

= 1×1.054

= $1.054

Therefore, the stock price can be calculated as follows

Po= D1/(rs-g)

= 1.054/(0.142-0.054)

= 1.054/0.088

= $11.98

Hence the Stock price is $11.98

3 0

3 years ago

All of the following statements regarding accounting treatments for liabilities under U.S. GAAP and IFRS are true except:_______

mihalych1998 [28]

Answer:

A) Accounting for bonds and notes under US GAAP and IFRS is similar.

Explanation:

US GAAP and IFRS do not have the same accounting guideline for bond issue cost:

Under US GAAP, bonds payable is recorded at face value while premiums or discounts are recorded separately. While under IFRS, bonds payable is recorded using the carrying value, and amortization or premiums or discounts is done by using the effective-interest method.

5 0

3 years ago