As long as the marginal benefits are higher than the marginal costs you are better off continuing the activity.
Consider the example of eating pizza. Each slice of pizza gives you happiness and helps fill you up (marginal benefit), but each slice also has lots of calories and fat (marginal cost). As long as you are still hungry and getting enjoyment from eating, you should keep eating. But once you reach the point where you are too full then you should stop, because the costs now outweigh the benefits.
Answer:
the contribution margin per unit for part A is $1,479,000
Explanation:
The computation of the contribution margin for part A is shown below:
Contribution margin per unit is
= $950 - $600 - $95
= $255
Now for contribution margin per unit for part A is
= 5,800 units × $255
= $1,479,000
Hence, the contribution margin per unit for part A is $1,479,000
Answer:
The correct option is B, bounded rationality
Explanation:
An ethical dilemma occurs when there is a conflict between one's interest and the interest of the organization leaving one with making choices between serving in the interest one the company or feathering one's nest.
Groupthink implies giving credence to the decision of a group over individual's thinking and creativity.
Bounded rationality is theme that was introduced by Herbert Simon which refers to the fact that making a rational decision is sometimes limited to the information at one's disposal as well as one's mental prowess.
Confidential papers are extremely well-protected materials. So, if I come across a document with Confidential scrawled on it, I'll simply tuck it under the door.
<h3>What basically constitutes confidential papers?</h3>
All plans, designs, renderings, reports, analyses, studies, records, agreements, summaries, notes, and other materials and documents relating to the Developer, whether written or given orally, are considered Confidential Documents.
As a result, in the scenario above, I will simply place the confidential paper in the drawer of a coworker.
Learn more about confidential papers:
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Answer:
Option C). This is a capital lease because it meets at least one of the four capital lease criteria.
Explanation:
In the following situations, the lease transactions are called Finance Lease.
i) The lessee will get the ownership of leased asset at the end of the lease term.
ii) The lessee has an option to buy the leased asset at the end of lease term at price, which is lower than its expected fair value at the date on which option will be excercised.
iii) The lease term covers the major part of the life of asset.
iv) At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset.
In the given question, Present value of minimum lease rental amounting to $ 78 million covers substantially 94 % portion of the initial fair value of leased asset. Accordingly, last condition / last situation mentioned above to treat lease as finance lease is satisfied in the given question. In other words, out of four capital lease criteria mentioned above, fourth criteria / fourth condition (At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset) is satisfied in this given question.
Present value of minimum lease rental as a percentage of initial fair value of leased asset :-
= (78 Million / 83 Million ) * 100
= 0.94 * 100
= 94 % (approx).
Lease in given question is capital lease because it meets at least one of the four capital lease criteria.
