Answer:
$10
Explanation:
Potter Corporation produces one product. The following per unit cost information is available:
Direct materials 7.00$
Direct labor 15.00
Variable overhead 8.00
Variable Selling and Admin 2.00
Fixed overhead costs are $100,000 per peiod and fixed selling and administrative costs are$70,000 per period.The selling price is $70 per unit.
Required:
Prepare an absorption costing (traditional) income statement assuming:
a. Production is 8,000 units and sales are 8,000 units.
b. Production is 8,000 units and sales are 9,000 units.
c. Production is 8,000 units and sales are 6,000 units.
Answer:
(a) Profit = $134,000
(b) Profit = $159,500
(c) Profit = $83,000
Explanation:
According to the scenario, calculation are as follows:
Variable cost of goods sold = Total variable production cost + fixed OH per unit
= ( $7 + $15 + $8) + ( $100,000 ÷ 8,000)
= $30 + $12.5
= $42.5
So, Absorption costing income statement are as follows:
(a) Production is 8,000 units and sales are 8,000 units
Sales = 8,000 × $70 = $560,000
Less: Variable expense
Variable cost of goods sold = 8,000 × $42.5 = 340,000
Less : Variable selling and admin expense
Variable selling and admin expense = 8,000 × $2 = $16,000
Fixed selling expense = $70,000
Profit = $134,000
(b) Production is 8,000 units and sales are 9,000 units
Sales = 9,000 × $70 = $630,000
Less: Variable expense
Variable cost of goods sold = 9,000 × $42.5 = $382,500
Less : Variable selling and admin expense
Variable selling and admin expense = 9,000 × $2 = $18,000
Fixed selling expense = $70,000
Profit = $159,500
(c) Production is 8,000 units and sales are 6,000 units
Sales = 6,000 × $70 = $420,000
Less: Variable expense
Variable cost of goods sold = 6,000 × $42.5 = $255,000
Less : Variable selling and admin expense
Variable selling and admin expense = 6,000 × $2 = $12,000
Fixed selling expense = $70,000
Profit = $83,000
Narrow Falls Lumber has total assets of $913,600, total debt of $424,500, net sales of $848,600, and net income of $94,000. The tax rate is 21 percent and the dividend payout ratio is 30 percent. What is the firm's sustainable growth rate?
Answer:
The firm's sustainable growth rate is 13%.
Explanation:
The firm's sustainable growth rate can be calculated using the following formula:
Sustainable growth rate = Retention Rate * Return on Equity ............. (1)
Where;
Dividend payout ratio = 30%, or 0.30
Retention rate = 1 - dividend payout ratio = 1 - 0.30 = 0.70
Shareholder's equity = Total assets - Total debt = $913,600 - $424,500 = $489,100
Return on equity = Net income / Shareholder's equity = $94,000 / $489,100 = 0.19
Substituting the relevant values into equation (1), we have:
Sustainable growth rate = 0.70 * 0.19 = 0.13, or 13%
Therefore, the firm's sustainable growth rate is 13%.
Restricted stock is Multiple Choice a special type of stock that is not transferable from the current holder to others until specific conditions are satisfied. a special type of stock that can be converted into corporate bonds after a specific amount of time has elapsed. a special type of stock that is a result of offering an employee stock ownership plan.
Answer:
a special type of stock that is not transferable from the current holder to others until specific conditions are satisfied
Explanation:
The restricted stock is the stock or the securities that are restricted means that they are not fully transferable when the specific conditions is not fulfilled. When these conditions would be fulfilled so these stock would not be considered as a restricted and they are freely transferable
Therefore the first option is correct
Using time and materials pricing, what is the total price for a job requiring 2 direct labor hours and $59 of materials
Answer:
b. $221.5
Explanation:
Note: The similar question is attached as picture below
Particulars Amount
Materials $62
Materials markup (25% of $62) $15.5
Direct Labor (2 Hours at $72 per hour) $144
Total price for Job $221.5
The shelf life of salmon is 2 days. You received a delivery of 55 lbs. You sell 30 lbs each day. What is your waste after 2
days?
a) 2 lb
b) 5 lb
c) Non waste because you ran out of salmon
What would it cost an insurance company to replace a family's personal property that originally cost $42,000
Answer: $48,300
Explanation:
The last part of the question is:
The replacement costs for the items have increased 15 percent.
The Insurance company will have to replace the total value of the family's property including whatever replacement costs that may have arisen.
Total cost = 42,000 * ( 1 + 15%)
= $48,300
The following selected amounts are available for Vizio Company. Retained earnings (beginning) $1,600 Net loss 300 Cash dividends declared 200 Stock dividends declared 200 What is its ending retained earnings balance
Answer:
$900
Explanation:
With regards to the above, the ending retained earnings balance is calculated as
= Beginning retained earnings - Net loss - Cash dividends declared - Stock dividends declared
= $1,600 - $300 - $200 - $200
= $900.
Therefore, the ending retained earnings balance is $900
Currently, a company has units of safety stock for a product located in warehouses. The company is contemplating expanding to warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $ in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $, is the expansion to warehouses a potentially good idea?
Answer:
The full question is "Currently, a company has 59,000 units of safety stock for a product located in 9 warehouses. The company is contemplating expanding to 28 warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $950,000 in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $4, is the expansion to 28 warehouses a potentially good idea? The proposed plan Y sense for the company because the change in total profit is $. Enter your response rounded to the nearest dollar and include a minus sign if appropriate.)"
Current Total safety stock = 59,000
No. of warehouses = 9
Safety stock per warehouse = 59,000/9 = $6,555.56
New number of warehouses = 28
Increase in number of warehouses = 28 - 9 = 19
Increase in number of safety stock = 19 * 6,555.56 = 124,555.64
Cost of each unit of safety stock = $4
Cost of increased safety stock = $4 * 124,555.54
Cost of increased safety stock = $498,222.56
Additional revenue = $950,000
Since, additional revenue > additional cost of safety stock, the additional warehouses is a good idea.
Increase in profit = Additional revenue - Increased cost
Increase in profit = $950,000 - $498,222.56
Increase in profit = $451,777.54
Hence, The proposed plan makes sense for the company because the change in total profit is $451,777.54
True or False: In a competitive labor market, increasing the minimum wage always raises the number of employed workers.
It is FALSE that in a competitive labor market, increasing the minimum wage always raises the number of employed workers.
This is because when the minimum wage increases, the cost of employing and maintaining employees will increase.This situation would, however, reduce the capacity at which firms or companies can employ more staff.Thus, the unemployment rate would increase, as there will be less financial means to employ additional workers.Hence, in this case, it is concluded that in a competitive labor market, increasing the minimum wage always lowers the number of employed workers.
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As a potential investor in a firm or perhaps the buyer of a business, would it be advisable for you to evaluate the company’s financial statements? Why or why not? What key information would you seek from a firm’s financial statements?
Answer:
True
Explanation:
In simple words, the financial statements of a company refers to the reports which depicts the activity of the business and their relative efficient. It shows the position of the company in monetary wise and other relevant information such as future plans and expectations.
As an investor, one wants to increase his or her money while getting some returns periodically. Thus, to evaluate the capability of a company to do so, the investor should evaluate the financial statement for sure.
Jiminez, Inc., had the following transactions during the month of March, current year. Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement.
Question Completion:
Cash received from bank loans was $10,000.
Revenues earned and received in cash were $9,000.
Dividends of $4,000 were paid to stockholders.
Expenses incurred and paid were $5,600.
Answer:
Jiminez, Inc.
Income Statement for the month ended March 31:
Revenue $9,000
Expenses 5,600
Net income $3,400
Dividends 4,000
Retained earnings during the year ($600)
Explanation:
Jiminez, Inc. paid more dividends to stockholders this month than it actually generated in net income. The excess amount of dividends must be from retained earnings carried forward from the previous month. In preparing the income statement for the month of March, Jiminez, Inc. must deduct all the expenses from its revenue to obtain the net income before tax. The bank loan does not form part of the items for the preparation of the income statement, as only temporary accounts are considered.
Transaction costs include costs of negotiating contracts with other firms. cost of enforcing contracts. the existence of asset-specificity. All of these
Answer:
Negotiating contracts with other firms
Explanation:
Transaction costs are initial cost incurred entering into a contract with other parties. These include brokers fees and commissions. Thus, these costs are incurred when negotiating contracts with other firms.
14. If a company issues common stock for $40,000 and uses $30,000 of the cash to
purchase a truck,
a. assets will be increased by $10,000.
b. equity will be reduced by $40,000.
assets will be increased by $40,000.
d. assets will be unchanged.
If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck, assets will be increased by $10,000. Thus, option 'A' is the correct option.
What are common stocks?A form of corporate equity ownership and a kind of security is common stock. Outside of the United States, the words voting share and ordinary share are widely used. In the UK and other Commonwealth nations, they are referred to as equity shares or ordinary shares. This kind of share entitles the bearer to a portion of the company's income as well as voting rights on corporate policy and the make-up of the board of directors.
Any specific corporate assets do not belong to common stockholders; instead, they are owned equally by all shareholders. In the event that a corporation issues both ordinary and preference shares, the preference owners will be paid dividends first.
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Firms that were successful in the past can fail today because A) they keep pace with changes in the nature of competition. B) the company strategy is outdated. C) their financial situation is resilient. D) management monitors the relevant environmental factors regularly.
Answer:
b
Explanation:
If a company's strategy is outdated, the company might fail today.
For example, let us assume that all companies in an industry advertise on social media and tailor their products to the teenagers. But a company continues to advertise only on radio and newspaper. Very soon the company will fail.
Or if a media company doesn't incorporate social media to reach customers. With less people reading newspaper, if the company sticks only to newspapers, soon it would fail
other options contribute to success of a firm
Blossom Company incurs these expenditures in purchasing a truck: cash price $26,470, accident insurance (during use) $2,080, sales taxes $1,660, motor vehicle license $570, and painting and lettering $2,190. What is the cost of the truck
Answer:
$30,320
Explanation:
With regards to the above, the cost of the truck would be
= Cash price $26,470 + Sales tax $1,660 + Painting and lettering $2,190
= $30,320
Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours. The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed overhead. The predetermined overhead rate, including both fixed and variable components, is $2.50 per direct labor-hour. The standards call for two direct labor-hours per unit of output produced. Last year, the company produced 11,500 units of product and worked 22,000 direct labor-hours. Actual costs were $22,500 for variable overhead and $31,000 for fixed overhead.
Required:
a. What is the denominator level of activity?
b. What were the standard hours allowed for the output last year?
c. What was the variable overhead spending variance?
d. What was the variable overhead efficiency variance?
e. What was the fixed overhead budget variance?
f. What was the fixed overhead volume variance?
Answer:
Variable rate = 20000 /20000 = $1 per DLH
Fixed rate = 30000/20000 = $1.5 per DLH
Predetermined overhead rate = Variable rate + Fixed rate
Predetermined overhead rate = 2.5
a. Predetermined overhead rate = Estimated total fixed + variable overhead / Estimated level of activity
2.5 = (20,000 + 30,000] / Estimated level of activity
2.5 = 50,000 / Estimated level of activity
Estimated level of activity = 50,000 /2.5
Estimated level of activity = 20,000 Direct labor hours
b. Standard hours = Number of actual output * Standard hours per unit
Standard hours = 11,500 units * 2 hours
Standard hours = 23,000 hours
c. Variable overhead spending variance = Actual variable cost - [Actual hours *SR]
= 22500 - [22000*1]
= 22500 -22000
= 500 U
d. Variable overhead efficiency variance =SR[AH-SH allowed for actual output]
= 1*[22000 - (11500 units * 2)]
= 1*[22000 - 23000]
= 1*1000
= 1000 F
e. Fixed overhead budget variance = Actual fixed cost -budgeted fixed overhead cost
= 31000- 30000
= 1000 U
f. Fixed overhead volume variance = Budgeted fixed overhead cost - Standard fixed overhead cost allowed for actual output
= 30000 - [11500 units* 2SH*1.5 rate]
= 30000 - 34500
= 4500 F
Alice Copper has wages of $120,000 and dividend income from a mutual fund of $5,000. She has allowable itemized deductions of $9,000. Alice is a single person with no dependents. What is the amount of Alice's Taxable Income
Answer:
$112,600
Explanation:
Calculation for What is the amount of Alice's Taxable Income
Wages $120,000
Add Dividend Income $5,000
Adjusted Gross Income $125,000
($120,000+$5,000)
Less Standard Deduction(Single and no dependents) ($12,400)
Taxable Income $112,600
($125,000-$12,400)
Therefore the amount of Alice's Taxable Income will be $112,600
Vinny is unmarried and provides more than half the support for his cousin Gambini, who lives in Vinny's home for the entire year. Gambini has a part-time pizza delivery job and made three thousand dollars during the year. Vinny will qualify for head of household filing status.
a. True
b. False
Answer:
a. True
Explanation:
Since Vinny is unmarried also it provides more than the half of the support for his cousin whose name is Gambini and she is doing part time job and made three thousand dollars in a year
So vinny would qualify the household head for flining the status
Therefore the given statement is true
hence, it is not false
Testing the probability of a relationship between variables occurring by chance alone if there really was no difference in the population from which that sample was drawn is known as:
a.Chi-square test
b.Significance testing
c.Multiple regression analysis
d.Correlation coefficient
Answer:
b.significance testing is answer.
Explanation:
I hope it's helpful!
The process of determining the likelihood of a link between variables arising by chance alone if there was no difference in the population from which the sample was selected is called as Significance testing. Thus, option (b) is correct.
What is probability?Probability is an area of mathematics that deals with numerical representations of how probable an event is to occur or how likely a statement is to be true. The probability of an occurrence is a number between 0 and 1, where 0 denotes the event's impossibility and 1 represents certainty.
A test of significance is a formal technique for comparing observable facts to a claim (also known as a hypothesis) whose veracity is being evaluated. A claim is a statement concerning a parameter, such as the population percentage p or population mean. Therefore, it can be concluded that option (b) is correct.
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Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $20,000 bill from her accountant for consulting services related to her small business. Reese can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 12 percent on her investments. a. What is the after-tax cost if she pays the $20,000 bill in December? b. What is the after-tax cost if she pays the $20,000 bill in January? Use Exhibit 3.1. c. Should Reese pay the $20,000 bill in December or January? multiple choice 1 December January d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $20,000 bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) e. Should Reese pay the $20,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year? multiple choice 2 December January
Answer:
a. What is the after-tax cost if she pays the $20,000 bill in December?
= $20,000 x (1 - 32%) = $13,600
b. What is the after-tax cost if she pays the $20,000 bill in January?
total after tax cost (including investment revenue):
= $20,000 x (1 - 35%) = $13,000
= -$20,000 x 12% x 1/12 x (1 - 35%) = -$130
= $12,870
c. Should Reese pay the $20,000 bill in December or January?
January, since the after tax cost is lower
d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $20,000 bill in January?
= $20,000 x (1 - 24%) = $15,200
= -$20,000 x 12% x 1/12 x (1 - 24%) = -$152
= $15,048
e. Should Reese pay the $20,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year?
December, since the after tax cost is lower
The balance in Accounts Receivable at the beginning of the accounting period was $13,800. During the period, services provided on account totaled $64,200. Collections on account totaled $69,300. The balance in Accounts Receivable at the end of the period was:_______
Answer:
$18,900
Explanation:
With regards to the above, Accounts receivables balance at the end of the period is computed as
= Accounts receivables at the beginning of the accounting period + Collections - Service provided during the period
= $13,800 + $69,300 - $64,200
= $18,900
This style of leadership may stunt the development of employees and ties the organization’s success to its leader.
Free rein
Autocratic
Democratic
Answer:
Autocratic
Explanation:
In autocratic leadership, the manager or leader makes all decisions on behalf of the company or group. The leader does not seek or consider the inputs of others when making decisions. The autocratic leadership style is the same as the dictatorship style.
An autocratic leader issues orders or commands which the subordinates are expected to follow to the latter. When the organization archives success, all the credit goes to the leader.
Which of the following is the most accurate statement regarding managers in today's world? Group of answer choices There is a greater need for customer focus than ever before. Managers are found almost exclusively in large corporations that have more than 500 employees. Managers are found almost exclusively in for-profit organizations. More than half of today’s managers are women.
Answer:
There is a greater need for customer focus than ever before.
Explanation:
An educational institution that sells shares to investors to make money
Incomplete question. Hence, In answered from a general economic perspective.
Answer:
is having an IPO
Explanation:
Of course, an IPO (Initial Public Offering) is one method that can be used to make/raise money by a business. Usually, the institution places its shares of stocks open for sale to investors.
Therefore, we can infer from the above statement that the educational institution was formerly privately owned, but since it started to sell its shares to investors so as to make money, it is having an IPO.
If the volume of production is increased over the level planned, the cost per unit would be expected to:
Answer:
Decrease for fixed costs and remain unchangedchange for variable cost.
Explanation:
As the level of production gets increases, we will have the fixed cost per unit to fall, that is it would decrease. But The total fixed cost would remain the same.
At an increase in production the variable cost would be fixed or constant since it is constant amount per unit produced. The variable cost per unit would never change due to changes in production.
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.
Required:
Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand.
Cups of Coffee Served in a Week
2,000 2,100 2,200
Fixed cost ? ? ?
Variable cost ? ? ?
Total costs ? ? ?
Average cost per cup of coffee served ? ? ?
Answer:
fixed cost : $1,200 $1,200 $1,200
Varaible cost 440 462 484
Total cost 1640 1662 1684
Average cost 0.82 0.79 0.77
Explanation:
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Total cost = fixed cost + variable cost
Average cost = total cost / quantity produced
Noncash items refer to: Accrued expenses. Inventory items purchased using credit. The ownership of intangible assets such as patents. Expenses which do not directly affect cash flows. Sales which are made using store credit
Answer:
The ownership of intangible assets such as patents.
Explanation:
Non cash items are items that do not include outlay of cash . e.g. depreciation , intangible assets
Currently, a company produces parts per day to meet demand. A standard container of the parts under consideration holds items. It takes days to receive the parts once a card is released. If the company wants a safety stock of of these parts, how many kanban cards are needed?
Answer:
6 kanban cards
Explanation:
Note: The full question is attached as picture below
D = 1800 parts/day
C = 175 items
LT = 0.25 days
SS = 650 Parts
N = {D*LT + SS]/C
N = [(1,800*0.25) + 650] / 175
N = (450 + 650) / 175
N = 1100 / 175
N = 6.29
N ≅ 6
So, if the company wants a safety stock of 650 of these parts, approximately, 6 kanban cards are needed.
The table below shows the marginal utilities in utils that Sarah derives from consuming two goods, snacks, and movies.
Quantity of Snacks Marginal Utility of Snacks Quantity of Movies Marginal Utility of Movies
0 - 0 -
1 20 1 50
2 18 2 35
3 15 3 24
4 12 4 20
5 10 5 15
6 8 6 10
Sarah has a limited weekly income of $50, and she spends it all on snacks and movies. Assume the price of snacks is $5 per unit, the price of a movie ticket is $10, and Sarah is a utility-maximizing consumer.
(a) Would Sarah be able to consume 3 snacks and 5 movies? Explain.
(b) How many snacks and movies will Sarah consume to maximize her utility? Explain.
(c) Calculate the total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies indicated in your answer in part (a). Show your work.
(d) Suppose Sarah's income increases to $60.
(i) What will happen to the marginal utility per dollar spent on movies?
(ii) Will Sarah be better off buying two more snacks or one more movie ticket? Explain.
Answer:
(a) No, Sarah would not be able to consume 3 snacks and 5 movies.
(b) Sarah will maximize her utility.
(c) The total utility Sarah will receive is 174 utils.
(d(i)) The marginal utility per dollar spent on movies will fall from 1.50 utils to 1.00 utils.
(d(ii)) Sarah will not be better off if she buys two more snacks or one more movie ticket.
Explanation:
Note: See the attached excel file for the calculation of marginal utility per dollar of Snacks and Movies.
(a) Would Sarah be able to consume 3 snacks and 5 movies? Explain.
No, because the total expenses would $65 would be greater than her weekly income of $50.
That is, if Sarah consumes 3 snacks and 5 movies, her total expenses would be:
Total expenses = (Units of snacks * Price of snacks) + (Units of movies * Price of movies) = (3 * $5) + (5 * $10) = $65.
Since the total expenses would $65 would be greater than her weekly income of $50, Sarah would not be able to consume 3 snacks and 5 movies.
(b) How many snacks and movies will Sarah consume to maximize her utility? Explain.
Sarah will maximize her utility at the point where marginal utility per dollar of Snacks is equal to the marginal utility per dollar of Movies. That is, where the following condition holds:
Marginal Utility of Snacks / Price of Snacks = Marginal Utility of Movies / Price of Movies
In the attached excel file, the above condition holds where Sarah consumes 4 snacks and 3 movies. At this point (see the red color in the attached excel file), we have:
Marginal Utility of Snacks / Price of Snacks = Marginal Utility of Movies / Price of Movies = 2.40
Therefore, Sarah will maximize her utility when she consumes 4 snacks and 3 movies. Because at this point, marginal utility per dollar of Snacks is equal to the marginal utility per dollar of Movies which is equal to 2.40.
(c) Calculate the total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies indicated in your answer in part (a). Show your work.
Total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies is the addition of the total utility from consuming utility maximizing quantities of the two goods.
The total utility from consuming a utility maximizing quantity of one good is the addition of the marginal utility from the first unit up to the utility maximizing units. From the attached excel file, we have:
Total utility from consuming utility maximizing quantity of Snacks = 20 + 18 + 15 + 12 = 65 utils
Total utility from consuming utility maximizing quantity of Movies = 50 + 35 + 24 = 109 utils
Therefore, we have:
Total utility from consuming the utility-maximizing combination of snacks and movies = 65 + 109 = 174 utils
(d(i)) Suppose Sarah's income increases to $60. What will happen to the marginal utility per dollar spent on movies?
To determine this, we assume that Sarah spends all her weekly income on movies alone. Therefore, we have:
Number of movies tickets when weekly income is $50 = $50 / Price of movie ticket = $50 / 10 = 5
Number of movies tickets when weekly income is $60 = $60 / Price of movie ticket = $60 / 10 = 6
Marginal utility per dollar spent on movies when weekly income is $50 = Marginal utility when 5 tickets is bought / Price of movie ticket = 15 / 10 = 1.50 utils
Marginal utility per dollar spent on movies when weekly income is $60 = Marginal utility when 6 tickets is bought / Price of movie ticket = 10 / 10 = 1.00 utils
Therefore, the marginal utility per dollar spent on movies will fall from 1.50 utils to 1.00 utils.
(d(ii)) Suppose Sarah's income increases to $60. Will Sarah be better off buying two more snacks or one more movie ticket? Explain.
If Sarah buys two snacks
From the attached excel file, this makes the total unit of snacks to increase from 4 to 6. This makes the marginal utility per dollar spent on snacks to fall from 2.40 to 1.60 while the marginal utility per dollar spent on movies still remains at 2.40.
This implies that Sarah will not be better off if she buys two more snacks because she is not maximizing her utility as the marginal utility per dollar spent on snacks of 1.60 is not equal to the marginal utility per dollar spent on movies of 2.40.
If Sarah buys one more movie ticket
From the attached excel file, this makes the total unit of movie ticket to increase from 3 to 4. This makes the marginal utility per dollar spent on movies to fall from 2.40 to 2.00 while the marginal utility per dollar spent on movies still remains at 2.40.
This implies that Sarah will not be better off if she buys one more movie ticket because she is not maximizing her utility as the marginal utility per dollar spent on snacks of 2.40 is not equal to the marginal utility per dollar spent on movies of 2.00.
Maurice is buying a property from Robert. At the initial property viewing, Robert tells Maurice that the property is 4.1 acres. They agree to a price, and enter into a purchase and sale agreement. Prior to closing, Maurice orders a survey. The surveyor discovers that the property is only 3.92 acres in size. Maurice and Robert's purchase and sale agreement is most likely:
Answer:
The contract is voidable.
Explanation:
The survey discovered a misrepresentation in the consideration (the size of the land), so that means that Maurice can choose to void it or not. A voidable contract is a contract that can be voided. In this case, the injured party is only Maurice, so only he can void it, or choose not to. They might negotiate a discount or something, it is up to him.
