Answer:
Option B ($5,500) is the appropriate choice.
Explanation:
The given expression is:
⇒ 
At the zero (0) level of income, the consumption would be the Autonomous consumption.
then,
Y = 0
On substituting the value of "Y" in the given expression, we get
⇒ 
⇒ 
⇒ 
(%)
Answer:
He is acting as a sub-agent. The sub-agent, just like the representative of the buyer, is an agent and owes a duty to care and act as an agent for the buyer representive.
Answer:
1. Nature of commodity
2. Availability of substitutes
3. Income level
4. Postponement of consumption
5. Number of uses
6. Share in total Expenditure
7. Time period
Explanation:
Answer:
The monetary value is $24,201.23
Explanation:
Giving the following information:
Cash flows:
Year 1= $6,800
Year 2= 6,800
Year 3= 6,800
Year 4= $15,000.
The discount rate is 15 percent.
We need to discount each cash flow to the present value:
PV= FV/(1+i)^n
Year 1= 6,800/1.15= 5,913.04
Year 2= 6,800/1.15^2= 5,141.78
Year 3= 6,800/1.15^3= 4,471.11
Year 4= 15,000/ 1.15^4= 8,576.30
Total= $24,201.23
Answer:
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.
Explanation:
<em>Prime cost is the addition of direct material cost , direct labor cost and direct expenses.</em>
<em>Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.</em>
For Bento Engineering,
<em>Prime cost = direct labour cost (since no figure is given for direct material and direct expenses.)</em>
Prime cost = $94,000
Conversion cost = Direct labour cost + overheads
<em>Conversion cost</em> = $94,000 + 126,000
= $135,400.
Prime cost = $94,000
<em>Conversion cost</em> = $135,400.
