All categories

3 years ago

Who determines how much utility an individual will receive from consuming a good?

Business

1 answer:

Artyom0805 [142]3 years ago

4 0

Answer:

Individuals are the only judge of their own utility. In general, greater consumption of a good brings higher total utility. However, the additional utility received from each unit of greater consumption tends to decline in a pattern of diminishing marginal utility.

You might be interested in

ABC has the following: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million,

Leno4ka [110]

Answer:

Current ratio = 4.04

Explanation:

Current ratio measures the ability of a business to settle its short term obligations using its liquid financial resources (current assets)

A current ratio in excess of 2 is considered as adequate (except for some special occasions) and vice versa.

Current ratio is computed as follows:

Current ratio = current assets/current liabilities

Applying this we have

Cash 102

Receivable 94

Inventory 182

Other current assets 18

Total current assets 396 

Total current liability 98

Current ratio= Total current assets / Total current liability

Current ratio = 396/98= 4.04:1

Current ratio = 4.04

3 0

4 years ago

Consider the following transactions: 1. The company uses supplies purchased in the previous period, $1,500. 2. The company pays

hodyreva [135]

Answer:

E. $1,500; $6,000

Explanation:

In accrual basis, expenses are recognized once it is incurred. In cash basis, expenses are only recorded when cash is paid. As such,

when company uses supplies purchased in the previous period, $1,500, no expense is recorded.

when the company pays cash for inventory, $6,000, an expense for $6,000 is recorded.

Therefore the amount of accrual-basis expense is $1,500 while the amount of cash-basis expense is $6,000.

7 0

3 years ago

Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special oc- casions. Since she has ju

Rudiy27

Answer:

a. $300 and $60

b. 50 shirts and $750

Explanation:

The computation is shown below:

a. The total revenue would be

= Number of shirts sold × selling price per shirts

= 20 shirts × $15

= $300

The variable cost would be

= Number of shirts sold × materials used in one shirt

= 20 shirts × $8

= $160

b. The net profit is

= Selling price per shirts - materials used in one shirt

= $15 - $8

= $7

And, the cost of using the equipment is $350

So, the break-even sales is

= $350 ÷ $7

= 50 shirts

And, the revenue is

= 50 shirts × $15

= $750

7 0

3 years ago

Assume the following amounts: Total fixed costs Selling price per unit Variable costs per unit If sales revenue per unit increa

sineoko [7]

Answer:

The correct option is c. 129,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Assume the following amounts:

Total fixed costs. $15,000

selling price per unit. $19

variable costs per unit. $12

if sales revenue per unit increases to $21 and 16,000 units are sold what is the operating income?

a 159,000

b. 336,000

c. 129,000

d. 144,000

The explanation to the answer is now provided as follows:

Since sales revenue per unit increases to $21, we use it as the selling price and proceed as follows:

Computation of Operating Income

Particular Amount ($)

Sales revenue (16,000 * $21) 336,000

Variable cost (16,000 * $12) (195,000)

Contribution 144,000

Fixed cost (15,000)

Operating income  129,000 

Therefore, the correct option is c. 129,000. That is, operatin income is $129,000.

5 0

4 years ago

Machinery purchased for $64,200 by Sheridan Co. in 2016 was originally estimated to have a life of 8 years with a salvage value

ArbitrLikvidat [17]

Answer:

Sheridan Co.

a. It is not necessary to correct the prior year's depreciation. Depreciation is an accounting estimate and does not require the adjustment of prior year's accounts when there is a correction in its estimates.

b. Entry to record depreciation for 2021:

Debit Depreciation Expense $4,387

Credit Accumulated Depreciation $4,387

To record the depreciation expense for the year.

Explanation:

a) Data and Calculations:

Purchase of machinery in 2016 = $64,200

Original estimated useful life = 8 years

Salvage value = $4,280

Depreciation amount = $59,920 ($64,200 - $4,280)

Depreciation expense per year = $7,490 ($59,920/8)

Accumulated depreciation for 5 years = $37,450

Net book value = $26,750 ($64,200 - $37,450)

Remaining estimated useful life = 5 years

Salvage value = $4,815

New depreciable amount = $21,935 ($26,750 - $4,815)

Depreciation expense per year = $4,387 ($21,935/5)

4 0

3 years ago