Answer:
b. Diminishing marginal returns
Explanation:
According to the law of diminishing returns, as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.
Due to the fact that Jim has seen the movie once, he would not derive the same level of satisfaction from watching the movie a second time. The utility he would receive from watching the movie a second time would be less than when he watched it a first time.
For financial accounting purposes, what is the total amount of product costs incurred to make 20,250 units
Answer:
$411,075
Explanation:
Calculation for the total amount of product costs incurred to make 20,250 units
First step is to calculate Variable manufacturing cost per unit
Direct materials 7.70
Direct labor Variable 4.70
Variable manufacturing overhead 2.20
Variable manufacturing cost per unit $14.6
Second step is to calculate Total variable manufacturing cost
Variable manufacturing cost per unit$14.6
*Number of units produced 20,250 units
=Total variable manufacturing cost $295,650
($14.6*20,250)
Second step is to calculate Total fixed manufacturing cost
Fixed manufacturing overhead per unit $5.70
xNumber of units used to calculate fixed cost per unit 20,250 units
=Total fixed manufacturing cost $115,425
($5.70*20,250)
Now let calculate Total product cost
Total product cost = $295,650+$115,425
Total product cost=$411,075
Therefore the total amount of product costs incurred to make 20,250 units is $411,075
The Nicor family is planning to purchase a new home 7 years from now. If they have $240,000 now, how much will be available at the time of purchase
Answer:
$530,400
Explanation:
The interest rate on the funds is 12%.
To find the answer, we use the future value of an investment formula:
FV = PV(1 +i)^n
Where FV = Future Value (the value we are looking for)
PV = Present value, in this case $240,000
i = the interest rate, in this case 12%
n = the number of compounding periods, in this case, 7 years.
Now, we plug the amounts into the formula:
FV = 240,000 (1 + 0.12)^7
FV = 240,000 (2.21)
FV = 530,400
So the value available for buying the new home after 7 years is $530,400
a. Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
b. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.
c. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
Required:
Record the bond issue and first interest payment on June 30, 2015.
Answer:
a. Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
January 1, 2015, bonds issued at par value
Dr Cash 70,000
Cr Bonds payable 70,000
June 30, 2015 first coupon payment
Dr Interest expense 2,450
Cr Cash 2,450
b. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.
January 1, 2015, bonds issued at a discount
Dr Cash 63,948
Dr Discount on bonds payable 6,052
Cr Bonds payable 70,000
amortization of bond discount per coupon payment = $6,052 / 30 = $201.73
June 30, 2015 first coupon payment
Dr Interest expense 2,651
Cr Cash 2,450
Cr Discount on bonds payable 201
c. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
January 1, 2015, bonds issued at a premium
Dr Cash 76,860
Cr Bonds payable 70,000
Cr Premium on bonds payable 6,860
amortization of bond premium per coupon payment = $6,860 / 30 = $228.67
June 30, 2015 first coupon payment
Dr Interest expense 2,221
Dr Premium on bonds payable 229
Cr Cash 2,450
what is consumer surplus
Explanation:
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In mainstream economics, economic surplus, also known as total welfare or Marshallian surplus, refers to two related quantities: Consumer surplus, or consumers' surplus, is the monetary gain obtained .
Answer:
Consumer surplus is defined as the difference between the consumers' willingness to pay for commodity and the actual price paid by them , or the equilibrium price .