Answer:
The correct answer is letter "C": marginal revenue equals marginal cost.
Explanation:
The profit-maximizing level of output for every type of firm is reached when the marginal revenue of production equals the marginal cost meaning that the additional cost of selling one more unit equals the cost of producing one more unit.
Marginal costs vary according to changes in production. Because of that, managers must identify when those events happen to calculate the profit margin (percentage sales that are converted into profits) of the firm to avoid losses.
Answer:
(A) $110,000
(B) $44,000
(C) $440,000
(D) $176,000
Explanation:
Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock
Sub corporation pays out 40% of net income of dividend each year
(A) Parent's Co's share of Sub's Co's net income for the year is $110,000
(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000
(C) The total net income can be calculated as follows
= 110,000 ×100/25
= 11,000,000/25
= $440,000
(D) The total dividend for the year can be calculated as follows
= 440,000 ×40/100
= 440,000 × 0.4
= $176,000
Answer: Equality
Without proper guidelines in place one would outweigh the other cause an imbalance. If the government didn't keep those equal there wouldn't be enough stability and nobody would be able to live fairly.
Answer:
$1,500
Explanation:
For the computation of effect of the transaction first we need to find out the book value sold for which is shown below:-
Book Value sold for = Original cost of the furniture - Accumulated depreciation
= $18,000 - $10,000
= $8,000
Gain = $9,500 - $8,000
= $1,500
Therefore for computing the effect of the transaction we simply applied the above formula and as we can see that there is gain of $1,500
Answer:
2,060 units
Explanation:
As we know thestock policy of the firm is the ending inventory for each month should be the 30 % of the next month's sales
In the case of february, following this policy:
- Starting inventory: is the same of ending inventory of the previous month: 0,3*2,000 (February´s sales) units= 600 units.
- Ending inventory= 0,3*2,200 (March´s sales) units= 660 units
Also, Ending Inventory (EI) is the result of the sum of Starting Inventory (SI) and February Purchases (P) minus February Sales (S)
We want to know P ( units Purchased), so:
P= EI-SI+S= 660-600+2,000=2060 units
