Answer:
Date Account Title Debit Credit
January 31 Work in Process $540
Factory Overhead $540
Explanation:
Overhead is applies by linking it to direct labor.
Overhead is $20,000 when Direct labor is $100,000.
= 20,000 / 100,000
= 20%
The overhead for this job must therefore be:
= 20% * 2,700
= $540
Cal Cookie Company (CCC) has 100 million shares of $1 par common stock authorized. The transactions below caused changes in CCC's outstanding shares.
January 4, 2016 Repurchased and retired 1 million shares at $8 per share
June 25, 2016 Repurchased and retired 2 million shares at $2 per share
Prior to the transactions, CCC's shareholder's equity included the following:
Common stock, 80 million shares at $1 par $80,000,000
Paid-in-Capital - excess of par160,000,000
Retained Earnings 120,000,000
Required:
Record entries for the above transactions. Please show work
Answer and Explanation:
The journal entries are shown below:
On January 4, 2016
Common capital (1 million × $1 per share) $1,000,000
Paid in capital excess of par (1 million × $160,000,000 ÷ $80,000,000) $2,000,000
Retained earnings (difference) $5,000,000
To Cash (1 million × $8) $8,000,000
(Being repurchase & retired shares are recorded)
On June 25,2016
Common capital (2 million × $1 per share) $2,000,000
Paid in capital excess of par ( 2 million × $2) $4,000,000
To Cash (2 million × $2) $4,000,000
To Retained earnings (difference) $2,000,000
(Being repurchase & retired shares are recorded)
Project manager Claire and her team need to minimize project risks. Help them match the step to minimize risk to what each step Involves.
Answer:
Determine which risks goes with prioritizing
Take into consideration goes with identifying
Relate to contingency goes with mitigating
and
Determine the likelihood goes with evaluating
Explanation:
I did the test and got it correct! Hope this helps :) For Edmentum/Plato
Answer:
Determine which risks >>> prioritizing risks
Take into consideration >>> identifying risks
Relate to contingency >>> mitigating risks
Determine the likelihood >>> evaluating risks
Explanation:
Correct on plato
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $34 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:
Per Unit 21,000 Units
Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Required:
1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
2. Should the outside supplier’s offer be accepted?
3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?
Answer:
Troy Engines, Ltd.
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
Explanation:
a) Data and Calculations:
Outside supplier's selling price = $34 per unit
Costs of producing in-house:
Per Unit 21,000 Units Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Cost of buying 17,000 carburetors from the outside supplier at $34 per unit = $578,000
Relevant cost of making 17,000 carburetors in-house ($37 * 17,000) = $629,000
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in outstanding credit card balances, $500 in government securities, $10 in currency in its vault, and $20 in deposits at the Fed. The bank's deposits that are part of M1 are equal to
Answer: $400
Explanation:
M1 money supply simply refers to the monies which are liquid like the checkable deposits, traveler's checks, and the coins and currencies that are in circulation.
Therefore, based on the information given in the question, the bank's deposits that are part of M1 will be the $400 in checkable deposit.
Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sold. Adkins has a calendar year accounting period and uses the straight-line method to compute depreciation expense. On March 17, 2018, Adkins acquired equipment at a cost of $220,000. The equipment has a residual value of $43,000 and an estimated useful life of 4 years. What amount of depreciation expense will be recorded for the year ending December 31, 2018
Answer:
Depreciation expense= $36,875
Explanation:
Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.
An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:
Annual depreciation:
= (cost of assets - salvage value)/ Estimated useful life
Cost - 220,000
Residual value = 43,000
Estimated useful life = 4 years
Annual depreciation = (220,000- 43,000)/4 =44,250
Annual depreciation = 44,250.
Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month.
Thus March 17, 2018 to December 2018 is taken to be 10 full months
Depreciation expense = 44,250.× 10/12 = 36,875
Depreciation expense= $36,875
You are a struggling song writer. You hear a group on the radio singing a song
that you wrote with a friend who is now managing the band. You want to
make sure you are not cheated out of your creative work. You have tried to
talk to the band but they won't respond. What writ would effectively stop the
band from earning income on that song until the problem is remedied?
A. Punitive damages
B. A restraining order
C. A permanent injunction
D. A mandatory injunction
Answer:
B. A retraining order i guess
Which of these best describes the Federal
Reserve System?-
It is an independent agency that
supervises and manages the financial
system.
-It is an agency through which Congress
supervises and manages the financial
system.
-It is an agency through which the judiciary
supervises and manages the financial
system.
-It is an agency through which the
executive branch supervises and manages
the financial system.
Answer:
Option A
Explanation:
The Federal Reserve System was created by Congress in order to provide an independent agency to the nation that can deal with the national monetary and financial system. It is the central bank of US that make monetary policies to maximize employment and stabilize inflation and interest rates.
Hence, option A is correct
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $29,000. During the month, the cost of units transferred out from the department was $159,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:
Answer: $188000
Explanation:
Based on the information given in the question, the total cost to be accounted for under the weighted-average method would be calculated thus:
Cost of ending work in process inventory = $29,000
Add: Cost of units transferred out = $159,000
Therefore, the total cost to be accounted for will be;
= $29000 + $159000
= $188000
Abigail does not feel that the company is paying her enough money to live on, despite the fact that she works hard. The quality of this_____________ (lack of belongingness, motivator, lack of power, hygiene factor) will make her dissatisfied with her work, according to Frederick Herzberg.
Answer:
hygiene factor
Explanation:
Since in the question it is mentioned that Abigail was not feel that the company would not pay sufficient money accrding to her work so here the quality of the hygiene factor would dissatisfied with her work
As the attributes that are along with the job satisfaction is known as hygiene factor
So as per the given situation, the above represent the answer
Short Company purchased land by paying $11,000 cash on the purchase date and agreed to pay $11,000 for each of the next six years beginning one-year from the purchase date. Short's incremental borrowing rate is 7%. On the balance sheet as of the purchase date, after the initial $11,000 payment was made, the liability reported is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Answer: $52,431.50
Explanation:
The liability reported will be the present value of the six payments of $11,000.
Since this is a constant amount, it will be an annuity:
= 11,000 * Present value interest factor of an annuity, 6 years, 7%
= 11,000 * 4.7665
= $52,431.50
Any difference between this and any options given is down to rounding errors. Pick the closest figure.
Select the correct word(s) from the drop down menu to finish the following sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are_____. If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are_____. Considering those two characteristics, fish in the ocean are____.
Question Completion:
Drop-down menu:
- excludable
- non-excludable
- rivalrous
- non-rivalrous
- common goods
- club goods
- public goods
- private goods
Answer:
Correct words to finish the sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are__non-excludable___.
If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are__rivalrous___.
Considering those two characteristics, fish in the ocean are_common goods___.
Explanation:
The two key characteristics of a public good are: it is non-excludable and non-rivalrous. A common good is non-excludable but rivalrous. A private good is excludable and rivalrous. A club good is excludable and non-rivalrous.
Non-excludable refers to goods that are costly and impossible for a person to exclude other users from using the goods.
Non-rivalrous good refers to goods that a person can use without preventing others from using the goods.
Junko's car dealership has been suffering from dust on the cars in its lot ever since Mak opened his bakery nearby. The bakery's flour deliveries send waves of dust down the block. Junko offers to cover half of the cost of Mak adding a shelter for his delivery area to reduce the blowing of flour dust toward the dealership. This is an example of reducing a negative externality through:
Answer:
"Private bargaining" seems to the appropriate response.
Explanation:
An accidental result of such an operation obtained by a corporate system as well as the agent isn't a respondent to this product or group of products, is termed as Externality.Factory pollution would be a detrimental externality as well as the costs are paid by local people. Correspondingly, thick planting supplies the locality with natural ventilation, which is a good externality.The groups remain private or third-party support until they reached a compromise. Thus the solution seems to be the right one.
Read the scenario and answer the following questions:
Maria works for a toy manufacturer and is responding to the claim of a disgruntled customer. The customer is upset because the Interactive toy he purchased for his child stopped working the day of the purchase. The customer tried replacing the batteries, but that would not fix the problem. Maria knows that there have been issues with this product, and she decides to write an adjustment message. Which of the following sentences would be appropriate for Maria to include in her adjustment message?
a. I wasn't personally responsible for the defect, but I'll see what I can do.
b. Perhaps your child did something to the toy to cause it to stop working.
c. You can use the enclosed voucher to purchase a new product of your choice.
d. I promise this will never happen again.
Answer: You can use the enclosed voucher to purchase a new product of your choice
Explanation:
An adjustment message simply refers to the response that is written with respect to a claim letter which was made against a business or organization.
The appropriate sentence that Maria should include in her adjustment message will be that "You can use the enclosed voucher to purchase a new product of your choice".
This will help calm the customer down and the customer will be happy to know that she can make another purchase with the voucher.
Other options such as "I wasn't personally responsible for the defect, but I'll see what I can do", and "Perhaps your child did something to the toy to cause it to stop working" will make the customer angrier.
Therefore, the correct option is C.
You expect to receive a payout from a trust fund in 3 years. The payout will be for $10,200. You plan to invest the money at an annual rate of 6.2 percent until the account is worth $17,800. How many years do you have to wait from today
Answer:
n= 12.25 years
Explanation:
Giving the following information:
Present value= $10,200
Future value= $17,800
Interest rate= 6.2%
First, we need to calculate the number of years it will take the investment to reach $17,80. We need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(17,800/10,200) / ln(1.062)
n= 9.25 years
Now, the total number of years:
n= 9.25 + 3
n= 12.25 years
Knowledge Check 01 The standard quantity per unit defines the ________. multiple choice price that should be paid for each unit of direct materials. total cost of direct materials that should be used for each unit of finished product. amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage. amount of direct labor-hours that should be used to produce one unit of finished goods.
Answer:
amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.
Explanation:
Standard quantity per unit is defined as materials that the manufacturer needs to complete a unit of a product. It also allows for inefficiencies such as spoilage and scrap.
It is used by managers to reduce wastage that exists during production by allocation of only the required amount of direct materials in the production process.
The law of diminishing marginal returns: a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns b. is a mathematical theorem that can be logically proved or disproved c. is the rate at which one input may be substituted for another input in the production process d. none of the above
Answer:
d. none of the above
Explanation:
In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
For example, buying a chocolate bar and eating it may satisfy your cravings but eating another one wouldn't give you as much satisfaction as the first due to diminishing marginal utility.
Suppose the economy is experiencing a recession. The output gap is hovering at −7%, causing higher than normal unemployment. Using the Fed model, complete the following passages to compare and contrast how monetary policy and fiscal policy can impact the economy. a. The Federal Reserve can reduce the to stimulate greater output and employment. The federal government can increase to help ease the recession. b. If both monetary and fiscal policy are used, the MP curve will shift , and the IS curve will shift to the . Both shifts will increase , and t
Answer:
a. The Federal Reserve can reduce the interest rates to stimulate greater output and employment. The federal government can increase government spending to help ease the recession.
The Fed can reduce interest rates by engaging in expansionary monetary policy that would then make it easier to borrow funds for investment. The Federal government can also increase spending as this will put more money into the economy to help it start moving again.
b. If both monetary and fiscal policy are used, the MP curve will shift downward, and the IS curve will shift to the right. Both shifts will increase income.
If both monetary and fiscal policy are used, companies will start producing again and hiring more people which will shift the Marginal Productivity curve downward. The IS curve will also shift to the right and both to these are indicators of an increase in income.
A reserve clause binds a professional athlete to a sports franchise even if the player does not have a contract with the team that retains the rights to the player. In other words, the player can only play for a single team and other teams may not bid for the player's services even in the absence of a contract. Major League Baseball was forced to outlaw reserve clauses in 1975. As a result of the ban, we would expect that
Answer: D. players in the major leagues would be paid more than their marginal product.
Explanation:
When the reserve clause was in effect, a team that had the rights to a player could pay the player what they wanted or at least according to their marginal product depending on how good they were without having to worry about other teams offering more money to the player because they could just decide not to let the player go.
When this clause was removed, this changed. Other teams could bid for players so bidding wars allowed major league players to make more money from either their team which would be forced to increase their salaries, or from other teams who would entice the players to move with higher salaries. This led to major league players being paid more than their marginal product.
Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.
(a) Prepare a projected CVP income statement for 2017, assuming the changes have not been made, and
(b) assuming that changes are made as described.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit= 1,560,000 / 60,000= $26
Unitary variable cost= 900,000 / 60,000= $15
Fixed costs= $500,000.
First, the income statement without the changes:
Sales= 1,560,000
Total varaible cost= (900,000)
Contribution margin= 660,000
Total fixed costs= (500,000)
Net operating income= 160,000
Now, with the changes:
Unitary variable cost= (15*0.8)= 12
Selling price= 26 - 1.5= $24.5
Sales in units= 60,000*1.05= 63,000
Fixed costs= 500,000 + 100,000= $600,000
Sales= 24.5*63,000= 1,543,500
Total variable cost= (12*63,000)= (756,000)
Total contribution margin= 787,500
Fixed costs= (600,000)
Net operating income= 187,500
Which tasks are common to all Education and Training career pathways? assessing students on learning and approving budgets communicating with schools and families and enforcing rules that govern behavior teaching students and collaborating with teachers on instructional content developing instructional content for teachers and assessing student learning through exams
The tasks associated with Education and Training career pathways is communicating with schools and families.
What is a career pathways?Career pathways serves as a profession path that individuals choose to follow in the rest of his life.
Therefore, second option is correct because going along Education and Training career pathways ,enforcing rules that govern behavior teaching is needed
Learn more about career pathways at;
https://brainly.com/question/6947486
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Relevance has always been the challenge of the advertising industry. Summarize Kristi Roger's assessment of the advertising industry in her Ted Talk. Considering her hypothesis and results, what are some implications for marketing managers as they seek to improve the ROI of marketing expenditures on all forms of marketing communications
Answer:
Advertising is a paid sort of promotion utilized by organizations for product promotion, hence being of a vital usage and a significant part in organizations. The achievement of any firm is reliant on the correct sort of advertising channels utilized.
Explanation:
In her Ted talk, it is clear Kristi Roger had conducted an extraordinary advertising analysis, in this way contending that relevance is a fundamental factor assuming an enormous part in advertising. She contends that the planned message of promotion should contact the perfect person at the perfect time. To guarantee this assertion is accomplished, an advertiser has the obligation to utilize the correct technology undeniably to make a pertinent directive for the correct crowd.
In addition, marketing managers are obligated to recognize the significant challenges in the market. They ought to get updated changes occurring in the market to stay away from any significant impacts on the Return On Investment (ROI).
To profit more from advertising, marketing managers should recruit the ideal person who is acceptable in quantitative skills rather than creative skills in light of the fact that the market analysis is of more significance than benefiting creative products into the market. A person with extraordinary quantitative skills can examine the market situations appropriately, henceforth s/he can dispose of a portion of the cycles that occur in computerized crusade improvement. To carry extraordinary outcomes to the organization, quantitative specialists guarantee important advertisements contact the perfect person at the perfect time.
Bryant Company has a factory machine with a book value of $93,100 and a remaining useful life of 5 years. It can be sold for $27,200. A new machine is available at a cost of $430,400. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $592,600 to $505,500. Prepare an analysis showing whether the old machine should be retained or replaced.
Answer:
The old machine should be replaced.
Explanation:
Note: See the attached excel file for the the analysis showing whether the old machine should be retained or replaced.
From the attached excel file, the following calculation are made:
Variable Manufacturing cost of Retain = Initial Variable Manufacturing cost * remaining useful life of old machine = $592,600 * 5 = $2,963,000
Variable Manufacturing cost of Replace = New Variable Manufacturing cost * Remaining useful life of new machine = $505,500 * 5 = $2,527,500
From the attached excel, it can be observed that the total cost of Retain is $32,200 higher than the total cost of Replace. This therefore implies that the old machine should be replaced.
Jensen Automotive produces alternators for American-made cars. They generally use a static budget with the following costs based on 8,000 units per month: indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000. If Jensen wanted to create a flexible budget for 9,000 units, what value would they record for variable costs
Answer:
the value that should be recorded for variable cost is $66,375
Explanation:
The computation of the value that should be recorded for variable cost is shown below:
= Total variable cost ÷ budgeted units × flexible budget units
= ($22,000 + $25,000 + $12,000) ÷ 8,000 units × 9,000 units
= $59,000 ÷ 8,000 units × 9,000 units
= $66,375
hence, the value that should be recorded for variable cost is $66,375
The above formula is used
A $64,000 machine with a 6-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $82,000, with a 10-year class life. The new machine will not increase sales, but will decrease operating costs by $9,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the incremental annual cash flow associated with the project
Answer:
$6,779
Explanation:
Calculation to determine the incremental annual cash flow associated with the project
First step is to calculate the depreciation
Depreciation=[($64,000/6 years)-($82,000/10 years)
Depreciation=$10,667-$8,200
Depreciation=$2,467
Now let calculate the Incremental annual cash flow
Incremental annual cash flow ={($9,000-$2,467)
-[($9,000-$2,467)*34%]+$2,467}
Incremental annual cash flow =[($6,533-$2,221)+$2,467]
Incremental annual cash flow =$4,312+$2,467
Incremental annual cash flow=$6,779
Therefore the incremental annual cash flow associated with the project is $6,779
Old Economy Traders opened an account to short-sell 1,300 shares of Internet Dreams at $46 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $46 to $59, and the stock has paid a dividend of $3.50 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar.)
Answer: $8450
Explanation:
First, we need to calculate the total initial asset which will be the value of shares sold and the margin which will be:
= (1300 × $46) + (50% × 1300 × $46)
= $59800 + $29900
= $89700
We will then calculate total liability which will be:
= (1300 × $59) + (1300 × $3.50)
= $76700 + $4550
= $81250
The remaining margin will then be:
= $89700 - $81250
= $8450
... is a systematic and planned introduction of employees to their jobs, their co-workers and the
organisation.
a. Job evaluation
b. Investiture orientation
c. Orientation
d. Placement
Answer:
c. orientation
Explanation:
The word orientation means finding out where something is supposed to be, and job orientation tells an employee everything important about their job,
Roy DeSoto earns a regular hourly salary of $24.00. He is paid time-and-a-half for all hours in excess of 40 in the week. For the week ended March 8, 20X1, he worked a total of 60 hours. His gross wages year to date, prior to his March 8, paycheck, are $12,160. Social Security Tax is 6.2% on a maximum of $132,900 of gross wages per year, Medicare Tax is 1.45%, federal unemployment tax is 0.6% and state unemployment tax is 4.2%, both on a maximum of $7,000 of gross wages per year. What is the employer's payroll tax expense for Roy for the week ended March 8, 20X1
XYZ Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: Standard Super Budgeted sales in units 2,160 540 Budgeted selling price $500 $1,500 Budgeted contribution margin per unit $80 $250 Actual sales in units 1,820 980 Actual selling price $550 $1,400 The total sales-mix variance in terms of the contribution margin is ________.
Answer:
Sales mix variance= $71,400F
Explanation:
A sales mix variance occurs when products are sold in a mix different from the standard mix. It can be calculated as follows:
Step 1: Actual total quantity sold = 1,820 + 980 =2,800
Step 2: Divide the actual total quantity sold into standard mix
Standard- 2160/2160+54)×2,800=2,240
Super -(540/2160+540)×2,800=560
Step 3: calculate mix variance as tabulated below
Product Std mix Actual mix Mix var Cont. Magin Mix Vari
Standard 2,240 1,820 420U 80 33,600 U
Super 560 980 420 F 250 105,000 F
Variance 71,400F
Sales mix variance= $71,400F
Kaspar Industries expects credit sales for January, February, and March to be $203,400, $267,600, and $317,300, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Answer:
January = $152,550
February = $251,550
March = $304,875
Explanation:
To Compute cash collections from customers follow the given collection history closely :
Month`s receipts = Cash Collected in Month of Sale (75%) + Cash Collected in Month After Sale
Cash Collection Schedule
Month January February March
In Month of Sales $152,550 $200,700 $237,975
Month After Sale $0 $50,850 $66,900
Total $152,550 $251,550 $304,875
With perfect price discrimination, the marginal revenue curve
A) is equal to the demand curve.
B) is below the demand curve. C) is above the demand curve.
D) is horizontal.
Answer: b
Explanation: Because the monopolist must lower the price on all units in order to sell additional units, marginal revenue is less than price. Because marginal revenue is less than price, the marginal revenue curve will lie below the demand curve.
