Answer:
INCREASE in Consumption of product Y
DECREASE in Consumption of product X
Explanation:
Based on the information given we were told that the already existing product (X) has a marginal utility of 10 utils as well as the price of the amounts of $5 while the new product (Y) has a marginal utility of 8 utils as well as the price of the amounts of $1 which means that PRODUCT Y marginal utility and price is lower than that of PRODUCT X marginal utility and price.
Therefore equal marginal principle suggests that Oscar should INCREASE his consumption of product Y and DECREASE his consumption of product X reason been that product Y has a lower marginal utility of 8 utils and the price of the amounts of $1 which means that his consumption of Product Y has to be INCREASED while product X on the other has a higher marginal utility 10 utils as well as the price of the amounts of $5 which means that his Consumption of Product X has to DECREASED.
Answer:
Companies will move overseas to escape unions and hire cheaper labor.
Answer:
cash 967,707 debit
premium on BP 67,707 credit
Bnds Payable 900,000 credit
interest expense 58062.42 debit
premium on BP 437.58 debit
cash 58500 credit
Explanation:
procceds 967,707
face value 900,000
premium on bonds payable 67,707
<em><u>first interest payment</u></em>
carrying value x market rate
967,707 x 0.06 = 58062.42
then cash outlay
face valeu x bond rate
900,000 x 0.065 = 58,500
the difference will be the amortization
Answer:
$90
Explanation:
The formula and the computation of the contribution margin per unit are presented below:
Contribution margin per unit = Selling price per unit - variable cost per unit
= $150 - $60
= $90
If we deduct the variable cost per unit from the selling price per unit, then the contribution margin per unit can arrive
We only considered the selling price and the variable cost per unit
Answer:
Option (d) is correct.
Explanation:
Given that,
Average variable cost = $0.30 for each donut
Fixed cost: Cost of rent and machinery = $20,000
If the number of donuts produced and sold in one year is 36,500, then
Average fixed cost:
= Total fixed cost ÷ Number of units sold
= $20,000 ÷ 36,500
= $0.547 or $0.55
Therefore, the average fixed costs be $0.55 if she sells 36,500 donuts in one year.
