<span>Fair market value should include as gross income in Lyles return for the receipt of these samples. It is the estimate of the market value of a property when the buyer and seller are knowledgeable and unpressured. Precedent or extrapolation helps in finding the Fair market value estimate.</span>
Answer:
Will increase
Explanation:
Substitutes are the goods which have high elastic demand or positive cross elasticity of demand. An increase in price substantially affects the demand for a substitute good. For example, if tea and coffee are substitutes, an increase in the price of coffee will increase the demand for tea and the overall surplus in the team market.
Answer:
C) opportunity cost
Explanation:
Opportunity costs are the costs incurred (or benefits lost) from choosing one activity or investment over another alternative.
In this case, Bobby will spend $60 in the concert ticket, but he is also not going to be able to work and earn his salary for the day (or afternoon). That lost salary is the opportunity cost of deciding to go to the concert instead of working.
Answer:
$6.55
Explanation:
A company sells two products. Product A sells for $10.00 per unit and Product B sells for $8.00 per unit. Variable costs are $3.00 for Product A and $2.50 for Product B. If the sales mix is 70% Product A and 30% Product B, the weighted average contribution margin is _____.
Step 1
Calculate Contribution per product = Selling Price - Variable Costs
Contribution for A = 10 - 3 = 7
Contribution for B = 8 - 2.5 = 5.5
Step 2
Multiply the Contribution per product by its sales mix
A = 7 x 70% = 4.9
B = 5.5 x 30% = 1.65
Step 3
Add up the weighted contribution margins for each product
Therefore the the weighted average contribution margin for both product is (4.9 + 1.65) = $6.55