Answer:
C) $4.00 variable selling and administrative cost
Explanation:
Based of the information given the costs that is RELEVANT in this decision is the amount of $4.00 which is variable selling and administrative cost reason been that RELEVANT COSTS are cost that are tend to be incurred only in a situation when making a particular organization or business decison reason been that the costs are variable costs which will later change in the future due to the organization decison
Vaughn Manufacturing's account balances at December 31, 2020 for Accounts Receivable and the related Allowance for Doubtful Accounts are $914000 debit and $1990 credit, respectively. From an aging of accounts receivable, it is estimated that $39800 of the December 31 receivables will be uncollectible. The necessary adjusting entry would include a credit to the allowance account for:______. A. $1990. B. $39800. C. $37810. D. $41790.
Answer:
C.$37810
Explanation:
Based on the information given we were told that the related Allowance for Doubtful Accounts has $1990 credit balance in which aging it was estimated that $39800 of the December 31 receivables will be uncollectible which means that The necessary adjusting Journal entry would include a credit to the allowance account for $37810 calculated as;
Allowance account=Uncollectible receivables-Allowance for Doubtful Accounts
Allowance account=$39800-$1990
Allowance account=$37810
Franklin is designing an advertisement. What is a good practice for him to follow? A. make the headline long and complicated B. use simple images in the advertisement C. show the product in use in the advertisement D. use a lot of text in the advertisement
Answer:
I would say C. Show the product in use in the advertisement.
Explanation The point of advertisement is that people immediately know if they want to have/buy the products advertised. With showing the product in use, you achieve exactly this. If person likes, what he sees, he buys the product.
On the other hand, if a person only sees random simple images, he may see pictures of not the product itself or the purpose for what it can be used. So he doesn't know, if he needs or wants the product.
Answer:
C. show the product in use in the advertisement
Explanation:
Try to show the product in use in your photograph rather than a static picture of the product. Showing the product in use more effectively demonstrates its usability.
Donna is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she discovers the following standard deviations of one year of daily stock closing prices. Masterful Pocket Watches: Standard deviation of stock prices =$9.73=$ 9.73 Perfect Plungers Plus: Standard deviation of stock prices =$1.07=$ 1.07 Based on the data and assuming these trends continue, which company would give Donna a stable long-term investment
Answer: d. Perfect Plungers Plus; the smaller standard deviation indicates that Perfect Plungers Plus has less variability in its closing prices than Masterful Pocket watches.
Explanation:
Standard deviation measures volatility with a high standard deviation pointing to more volatility than less. Stocks with a high volatility are by definition, not very stable.
Masterful Pocket watches has a higher standard deviation than Perfect Plungers Plus which means that Perfect Plungers is more stable than Masterful Pocket watches when it comes to closing prices. Perfect Plus would therefore be the best option for providing a stable long-term investment based on this metric.
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $70. Limit Buy Orders Limit Sell Orders Price Shares Price Shares $69.75 800 $69.80 120 69.70 1,100 69.85 120 69.65 800 69.90 200 69.60 200 69.95 120 68.65 900 a. If a market buy order for 120 shares comes in, at what price will it be filled
Answer:
$69.80
Explanation:
Note, a market order is an order designed to execute an order immediately by matching the best available price on the sell order list.
When we look carefully at the sell order book, we observe that the only sell order containing the specified quantity of 120 units of shares at a price close to the market price is $69.80. Even though there are other cheaper orders are available, their order quantity does not match the market buy order for the 120 shares and thus would not be filled.
There are currently 417 students enrolled in Webster Elementary School, and the number of students is decreasing at the rate of 15 students per year. Currently the annual expense to educate one student is $1,149, and the expense to educate one student is increasing at the rate of $39 per year. Use the product rule to determine the rate at which the total expense to educate the students at Webster Elementary School is currently changing per year.
Answer:
Current student = 417
Student increasing rate per year = 15
Annual cost to educate one student = $1,149
The decreasing rate on one student = $39
Total decreasing cost = 417*$39 = $16,263
Total cost of Increase students per year = 15 * $1,149 = $17,235
∴$17,235 - $16,263 = $972
So, the cost to educate the students at Webster Elementary School is increasing at the rate of $972 per year.
On January 1, 2020, Marvel Company purchased an investment in Stark Industries for $5 million, representing 35% of the book value of Stark Industries. During the year, Stark reported net income of $1,200,000 and pays cash dividends of $100,000. At the end of the year, the fair value of Marvel’s investment is $5.4 million. Required At what amount is the investment reported on Marvel’s balance sheet at year-end? What amount of income from investments does Marvel report? Prepare journal entries to record the transactions for Marvel Company.
Answer:
1. Investment at beginning $5,000,000
Add: Net Income (1200000*35%) $420,000
Less: Dividend (100000*35%) $35,000
Investment at year end $5,385,000
2. Amount of Income from Investment = $1,200,000*35% = $420,000
3. Journal entries to record transactions
Particulars Debit Credit
Investment in Marvel Co. $420,000
Equity Income $420,000
(Recording receipt of net income)
Cash $35,000
Investment in Marvel Co $35,000
( Recording receipt of dividend)
The price of Good B increases by 4%, causing the quantity demanded of Good A to decrease by 6%. The cross-price elasticity of demand is ________, and the goods are ________.
Answer:
The answer is -1.5 and complementary goods
Explanation:
Cross price elasticity is the percentage decrease in quantity demanded divided percentage increase in price.
= -6/4
= - 1.5.
Because the sign is negative, the goods are complements. Complementary goods are directly related. As in they move in the same direction.
For example, car and fuel are complements. The increase in quantity demanded for car will increase the quantity demanded for fuel. Or if the price of car goes up, all things being equal, the quantity demanded of car will reduce and for fuel too.
Condensed financial data of Windsor Company for 2017 and 2016 are presented below.WINDSOR COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2017 AND 2016 2017 2016Cash $1,770 $1,170Receivables 1,790 1,320Inventory 1,610 1,940Plant assets 1,910 1,680Accumulated depreciation (1,200) (1,190 )Long-term investments (held-to-maturity) 1,300 1,420 $7,180 $6,340Accounts payable $1,210 $910Accrued liabilities 200 240Bonds payable 1,370 1,560Common stock 1,880 1,740Retained earnings 2,520 1,890 $7,180 $6,340WINDSOR COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2017Sales revenue $7,010Cost of goods sold 4,730Gross margin 2,280Selling and administrative expenses 930Income from operations 1,350Other revenues and gains Gain on sale of investments 80Income before tax 1,430Income tax expense 540Net income 890Cash dividends 260Income retained in business $630Additional information:During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.Prepare a statement of cash flows using the indirect method.
Answer and Explanation:
The preparation of the cash flow statement is presented below
Windsor Company
Statement of cash flow
Cash flows from operating activities
Net Income $890
Adjustments made
Add: Depreciation expenses ($1,200 - $1,190) $10
Less: Gain on sale of investment -$80
Less: Increase in receivable -$470
Add: Decrease in Inventories $330
Add: Increase in Accounts Payable $300
Less: Decrease in Accrued Liabilities -$40
Net cash from operating activities $940
Cash flows from investing activities
Sale of long term investment (($1,420 - $1,300) + $80) $200
less: Purchase of Plant Assets ($1,910 - ($1,680 + $70)) -$160
Net cash used investing activities $40
Cash flows from financing activities
Repayment of Bonds Payable -$190
Add: Issue of Common stock ($1,880 - ($1,740 + $70)) 70
Less: Payment of Dividends -$260
Net cash from financing activities -$380.00
Net Increase in cash and cash equivalents $600
Add: Beginning cash balance $1,170.00
Ending Cash Balance $1,770
Non cash activities
Issue of common stock of $70 for acquisition of Plant
The economy has grown by 4% per year over the past 30 years. During the same period, the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years. How much has growing physical capital per worker contributed as a percentage of total productivity growth
Answer:
2%
Explanation:
Physical capital per worker contributed to productivity growth = Increased productivity per 1% physical capital * Quantity of physical capital growth rate
- Increased productivity per 1% physical capital = 0.4%
- Quantity of physical capital growth rate = 5%
So, Physical capital per worker contributed to productivity growth = 0.4%*5% = 2%.
The techniques, formulas, and essential explanations can be found in the archive provided below. If you have any questions, please ask them and I will gladly answer them.
How much contribution was made as total productivity growth?Output per worker has grown by 4% because output has grown by 4% and labor has grown by 1%.
For more information about productivity growth, refer below
https://brainly.com/question/6142956
can someone help me:
list down 3 recession marketing strategy?
Answer:
Don't arbitrarily cut your marketing budget.
Do a deep dive of your target audience's recession behavior.
Analyze and track everything—now.
Focus on existing customers.
Explanation:
While _______ decisions will generally need to be processed via the ______ system in our brains in order for us to reach a good decision, with ______ decisions, heuristics can allow decision-makers to switch to the quick, _____ system. Group of answer choices Nonprogrammed; reflective; programmed; reactive Nonprogrammed; reactive; programmed; reflective Nonprogrammed; reactive; programmed; reactive Programmed; reflective; nonprogrammed; reflective None of the above
Answer:
Nonprogrammed; reflective; programmed; reactive
Explanation:
Programmed decisions can be regarded as decision which involves well understood criteria when making it,. nonprogrammed decisions on the other hand can be explained as decisions which are novel, they are decision that does not have clear guidelines when trying to reach solution. rules as well as guidelines can be set up for programmed decisions by Managers when known fact is available because this will enhance in reaching
decisions quickly. It should be noted that While non programmed decisions will generally need to be processed via the reflective system in our brains in order for us to reach a good decision, with programmed decisions, heuristics can allow decision-makers to switch to the quick, reactive system.
What are the three main categories of a tax return?
A.
allowances, deductions, and income
B.
credits, allowances, and withholding
C.
income, deductions, and credits
D.
allowances, deductions, and credits
Answer:C.
Explanation:
Explanation:
C.
income, deductions, and credits
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $68,000 to produce 2,150 units that can be sold now for $89,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $250 per unit. If Holmes processes further, the units can be sold for $435 each. Compute the incremental income if Holmes processes further.
Answer:
$30,000
Explanation:
See solution below.
Sells as it is
Sales $89,500
Additional processing cost ($68,000)
Net profit or loss = $39,500
To process further
Sales (2,150 units × $435) $935,250
Additional processing cost
$68,000 + (2,150 units × $250) ($537,568)
Net profit loss $397,682
Felicia put $175 into a CD that pays 4% interest, compounded semiannually.
According to the rule of 72, approximately how long will it take for her money
to double?
A. 8 years
B. 16 years
C. 12 years
D. 18 years
Answer:
D. 18 years
Explanation:
Felicia has $175; doubling it will make it $350 ($175 x 2)
The interest per year is 4%
The applicable formula is A= P ( 1 + r)^n
where A = $350
P=$175
r=0.04
n= time ???
$350=$175 (1 +0.04)^n
350= 175(1.04)^n
350/175=1.04^n
2=1.04^n
log 2= (log 1.04)n
n= log2/ log1.04
n= 0.30102/0.017033
n= 17.70 year
n=18 years
What is the expected cashflow of the company XYZ in year 1 if its EBIT in year 1 is $270,000, depreciation is $85,000, change in net working capital is $19,000, and the capital expenditure is $35,000? The tax rate is 25%.
a. 101,500
b. 233,500
c. 271,500
d. 171,500
Answer: b. 233,500
Explanation:
The expected cashflow is;
= (EBIT * (1 - tax) ) + Depreciation - change in net working capital - capital expenditure
= (270,000 * (1 - 25%)) + 85,000 - 19,000 - 35,000
= $233,500
The following information is available regarding John Smith's capital account in Technology Consulting Group, a general partnership, for a recent year: Beginning of the year balance $ 32,000 His share of partnership income $ 11,000 Withdrawals made during the year $ 7,000 What is Smith's partner return on equity during the year in question
Answer:
32.35%
Explanation:
Calculation for What is Smith's partner return on equity during the year in question
First step is to calculate the Ending partner equity
Ending partner equity = $32,000 + $11,000 - $7,000
Ending partner equity = $36,000
Now let calculate the partner return on equity
Partner return on equity= $11,000 / (($32,000 + $36,000)/2)
Partner return on equity= $11,000/($68,000/2)
Partner return on equity= $11,000/$34,000
Partner return on equity= 32.35%
Therefore Smith's partner return on equity during the year in question will be 32.35%
When an investor adds international stocks to his or her U.S. stock portfolio, a. he or she needs to seek professional management because he or she doesn't have access to international investments on his or her own. b. it will have no impact on either the risk or the return of his or her portfolio. c. he or she will increase his or her expected return but must also take on more risk. d. he or she can reduce the risk of his or her portfolio. e. it will raise his or her risk relative to the risk he or she would face just holding U.S. stocks.
Answer:
When an investor adds international stocks to his or her U.S. stock portfolio, a. he or she needs to seek professional management because he or she doesn't have access to international investments on his or her own. b. it will have no impact on either the risk or the return of his or her portfolio. c. he or she will increase his or her expected return but must also take on more risk. d. he or she can reduce the risk of his or her portfolio. e. it will raise his or her risk relative to the risk he or she would face just holding U.S. stocks.
Use this information for ABC Corporation to answer the question that follow. ABC Corporation has three service departments with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows: Micro Macro Super Direct revenues $700,000 $850,000 $650,000 Direct operating expenses $50,000 $70,000 $100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125
Answer: See explanation
Explanation:
The question is:
1. What is the service department charge rate for Graphics Production?
a.$10.00
b.$2.00
c.$0.50
d.$6.66
The service department charge for Graphics Production will be calculated by dividing the cost of graphic production by the total number of copies that are made. This will be:
= $200000/(20000 + 30000 + 50000)
= $200,000 / 100,000
= $2 per copy
2. How much service department cost will be allocated to the Micro Division?
a.$200,000
b.$145,000
c.$345,000
d.$60,000
The service department cost that is allocated to the Micro Division will be calculated as:
= [20000 x ($200000/100000)] + [700 x ($500000/2000)] + [130 x ($400000/400)]
= (20000 × 2) + (700 × 250) + (130 × 1000)
= $40000 + $175000 + $130000
= $345000
Last weekend, Bob attended the university football game. At the opening kickoff, the crowd stood up. Bob therefore had to stand up as well to see the game. In this case, Bob was participating in A. a dynamic game of strategy, which is played over time. B. a cooperative game of strategy, where participants collectively choose their strategy to maximize their joint payoffs. C. a non-cooperative game of strategy, where participants independently choose their strategy to maximize their payoffs. D. an NCAA football game.
Answer:
a non-cooperative game strategy, where participants independently choose their strategy to maximize their payoffs.
Explanation:
From the question, we are informed about Bob, who attended the university football game last week . At the opening kickoff, the crowd stood up. Bob therefore had to stand up as well to see the game. In this case, Bob was participating in a non-cooperative game of strategy, where participants collectively choose their strategy to maximize their joint payoffs. Non-cooperative game strategy can be regarded as the rational ways economic agent relate with each other so that their goals can be achieved. In this game both the available strategies as well as the outcome from various choices will be listed.
Which report lists each customer with an open balance, and places invoices in different columns based on whether they are current or have been overdue 30, 60, or 90 days
Answer:
A/R aging Summary Report
Explanation:
Short Corporation acquired Hathaway, Inc., for $33,520,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $30,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?
Answer:
$0
Explanation:
The computation of the annual amortization for goodwill is shown below:
As we know in the case of goodwill, the impairment test is to be done on periodic basis and if there is any fall in the value so the same is to be reported as the impairment loss
So for goodwill, no amortization is to be done
hence, the annual amortization is zero
Assume that in a traditional costing system that all the indirect costs are allocated based on direct materials. Calculate the dollar amount of packaging costs that is allocated under the traditional costing system to the following cost objects 1) fresh bakery goods, 2) snack cakes, and 3) frozen bakery goods.
Answer:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Explanation:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Follow this for all the cost heads provided.
Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,150 and $165,550 at December 31, 2020, and December 31, 2021, respectively. During 2021 Clor recognized $75,650 of net income and paid dividends of $20,500. Assuming that Bloomfield owned the same percentage of Clor throughout 2021, its percentage ownership must have been: (Round your answer to the nearest whole percent): Multiple Choice 26%. 20%. 75%. 28%.
Answer:
28%
Explanation:
let X = the percentage of ownership of Clor Confectionery
the investment account balance = $150,150 - X$20,500 + X75,650 = $165,550
$150,150 + X$55,150 = $165,550
X$55,150 = $15,400
X = $15,400 / $55,150 = 0.2792 = 27.92% ≈ 28%
Which leadership theory states that the challenge facing leaders is first to analyze the situation and identify the most appropriate style of leadership and then to develop the capacity to be flexible enough to use different leadership styles as appropriate
Answer:
path-goal approach to leadership
Explanation:
According to the information provided by the question above, the most adequate leadership theory is that of path goal leadership approach, which is a model characterized by the adequacy of the leader's behavior in relation to the behavior of employees in the work environment, or in other words, the leader has the flexibility to vary his actions according to the expectations of the employees, with this it is believed that there will be greater motivation and productivity at work.
This theory has as its central focus the adaptation of the leader to the individual needs of each employee in order to provide the best tools and the ideal way to obtain the expected objectives and goals.
Concord Corporation sells one product and uses a perpetual inventory system. The beginning inventory consisted of 80 units that cost $19 per unit. During the current month, the company purchased 481 units at $20 each. Sales during the month totaled 365 units for $42 each. What is the number of units in the ending inventory
Answer:
the number of units in ending inventory is 196 units
Explanation:
The computation of the number of units in ending inventory is shown below:
= Opening inventory units + purchased units - sales units
= 80 units + 481 units - 365 units
= 196 units
hence, the number of units in ending inventory is 196 units
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Multiple Choice Question 119Sarah Jones's regular rate of pay is $26 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 49 hours last week. Therefore, her gross wages were
Answer: $1391
Explanation:
given data:
pay per hour = $26
hours worked last week = 49
pay for hours exceeding 40 = [tex]1\frac{1}{2}[/tex]
solution:
her gross wage
[tex]= 26 * 40 + 1\frac{1}{2}*26*9\\[/tex]
[tex]= 1040 + 1.5(26)*9\\[/tex]
[tex]= 1040 + 39*9[/tex]
[tex]= 1040 + 351\\[/tex]
[tex]= 1391[/tex]
her gross wage for the week is $1391
Wild Sun Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared: WILD SUN AIRLINES INC. Divisional Income Statements For the Year Ended December 31, 20161 Passenger Division Cargo Division2 Revenues $3,045,000.00 $3,045,000.003 Operating expenses 2,425,000.00 2,748,000.004 Income from operations before service department charges $620,000.00 $297,000.005 Less service department charges:6 Training $126,900.00 $126,900.007 Flight scheduling 96,300.00 96,300.008 Reservations 151,200.00 151,200.009 Total service department charges $374,400.00 $374,400.0010 Income from operations $245,600.00 $(77,400.00)The service department charge rate for the service department costs was based on revenues. Because the revenues of the two divisions were the same, the service department charges to each division were also the same.The following additional information is available: Passenger Division Cargo Division TotalNumber of personnel trained 320 220 540Number of flights 650 1,150 1,800Number of reservations requested 21,000 0 21,000Required:A. Does the income from operations for the two divisions accurately measure performance? Explain.B. Correct the divisional income statements, using the activity bases provided in revising the service department charges. If there is no amount or an amount is zero, enter "0". Round your interim calculations to two decimal places, if required.Wild Sun Airlines Inc. has two divisions organized
Answer:
Wild Sun Airlines, Inc.
A. The income from operations for the two divisions does not accurately measure performance. It was not based on the level of activity carried out in each division of Wild Sun Airlines Inc.
B. WILD SUN AIRLINES INC. Corrected Divisional Income Statements For the Year Ended December 31, 2016:
1 Passenger Division Cargo Division
2 Revenues $3,045,000.00 $3,045,000.00
3 Operating expenses 2,425,000.00 2,748,000.00
4 Income from operations before
service department charges $620,000.00 $297,000.00
5 Less service department charges:
6 Training $150,400.00 $103,400.00
7 Flight scheduling 69,550.00 123,050.00
8 Reservations 302,400.00 0.00
9 Total service department charges $522,350.00 $226,450.00
10 Income from operations $97,650.00 $70,550.00)
Explanation:
a) Data and Calculations:
WILD SUN AIRLINES INC. Divisional Income Statements For the Year Ended December 31, 2016
1 Passenger Division Cargo Division
2 Revenues $3,045,000.00 $3,045,000.00
3 Operating expenses 2,425,000.00 2,748,000.00
4 Income from operations before
service department charges $620,000.00 $297,000.00
5 Less service department charges:
6 Training $126,900.00 $126,900.00
7 Flight scheduling 96,300.00 96,300.00
8 Reservations 151,200.00 151,200.00
9 Total service department charges $374,400.00 $374,400.00
10 Income from operations $245,600.00 $(77,400.00)
Additional Data:
Passenger Division Cargo Division Total
Number of personnel trained 320 220 540
Number of flights 650 1,150 1,800
Number of reservations requested 21,000 0 21,000
Activity-based costing rates:
Total Costs Total Activity Rate
6 Training $253,800.00 540 $470 per personnel
7 Flight scheduling 192,600.00 1,800 $107 per flight
8 Reservations 304,400.00 21,000 $14.495 per reservation
Costs Allocation:
Passenger Division Cargo Division Total
Training costs $150,400 ($470*320) $103,400 ($470*220) $253,800
Flight scheduling 69,550 ($107*650) 123,050 ($107*1,150) 192,600
Reservations 304,400 ($14.495 *21,000) 304,400
Total costs $750,800
A.J., a 20-something college graduate, was recently hired as a financial-analyst assistant for a large company. He recalled that business school stressed that he manage his personal finances as prudently as he manages the financial concerns of his company. A.J. has come to you to assist him in developing a systematic approach to managing his own finances. As a start, your advice is to:
Answer:
prepare an expense record, and make certain that his credit is good so he can continue to spend more than he makes
Explanation:
Since in the question it is mentioned that an individual is recently hired as a financial analyst for a big company he remebered that how he can manage his personal finance and the financial concerns so in order to maintain its approach with respect to his own finance we should suggest that first prepare the record of an expense and also certain about the good credit score so that he is able to spend more
Therefore the first option is correct
How does simple interest differ from compound interest?
You earn simple interest in a savings account and compound interest on an investment.
Simple interest rates are between 1-5% while compound interest rates are over 5%.
Simple interest is calculated on the principal as well as the interest you’ve already earned; compound interest is calculated on principal alone.
Simple interest is calculated on principal alone; compound interest is calculated on the principal as well as the interest you’ve already earned.
Answer:
Simple interest is calculated on principal alone; compound interest is calculated on the principal as well as the interest you’ve already earned.
Explanation:
Simple interest remains a constant amount throughout the life of the loan or deposit. The amount does not change because it is calculated based on the principal amount only. As long as the principal amount is unchanged, the simple interest amount will remain the same.
Compounding refers to the adding of interest earned to the principal amount. At the end of a financial period, the interest earned is added to the principal. In the next period, the principal amount will be higher due to the interest earned added. An increase in the principal amount results in higher interest earnings.
Suppose that Nike creates a new UK t-shirt for the basketball season. When asked how much they w ould be willing to pay for this new shirt: Logan says he is willing to pay $30 Shelby says she is willing to pay $27 Alex says he is willing to be $25 Luke says he is willing to pay $18 Nigel says he is w illing pay $18 Emily says she is willing to pay $10 If the shirts end up selling for a price of $20, what is the total amount of consumer surplus that will occur in the market
Answer:
$22
Explanation:
consumer surplus is the difference between the price that consumers are willing and able to pay for a good versus the selling of the good:
Logan = $30 - $20 = $10Shelby = $27 - $20 = $7Alex = $25 - $20 = $5total = $22Since Luke, Nigel and Emily probably didn't buy the t-shirts, they are not included in this calculation.
The only way consumer surplus can be negative is that consumers are forced to purchase an essential good, but that is not the case here.