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liubo4ka
1 month ago
7

If your credit card limit is $800 and your outstanding balance is $725, what is the largest amount you can charge on that card i

n the upcoming month?
$0


$725


$75


$800
Business
1 answer:
Free_Kalibri [3.1K]1 month ago
3 0

Answer:

The correct selection is option "C": $75.

Explanation:

The outstanding balance on a credit card shows how much the user has spent against the card's credit limit. It also indicates the debt owed to the issuing bank. Once the outstanding balance is cleared, the total credit limit becomes available again.

Therefore, with a credit limit of $800 and an outstanding balance of $725, the maximum amount the account holder can charge next month is $75 ($800-$725 = $75).

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A small college employs two economists. Rob has been employed by the college for 15 years and Bill has been employed for one yea
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Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, m
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26 days ago
Gulinson Corporation has two divisions: Division A and Division B. Data from the most recent month appear below: Total Company D
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1 month ago
A company's unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $16
Free_Kalibri [3195]

Answer:

Incremental profit = $30000

thus, the correct choice is a. $30,000

Explanation:

provided data

Variable costs = $75

Fixed costs = 30

Sales price = $165

to determine

incremental profit or loss  from approval

solution

The contribution per unit is calculated as follows:

Contribution per unit = $165 - $75

Contribution per unit = $90

Consequently, we determine the loss on contribution from forgoing regular sales:

Loss on contribution = $3000 × $90

Loss on contribution = $270000

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The incremental contribution for the special order is calculated as:

Incremental contribution = (135 - 75) × 5000

Incremental contribution = $300000

Thus, the incremental profit equates to:

Incremental profit = $300000 - $270000

Incremental profit = $30000

therefore, the correct option is a. $30,000

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