Response: $4,950
Justification:
Using the First In First Out method for valuing inventory indicates that the oldest inventory is sold off first, leaving the newer stock at year's end.
The final 25 units consist of the latest purchases made:
20 units from the third order
5 units from the second order
Thus, inventory valuation = (20 * 195) + (5 * 210)
= $4,950
This question does not involve the provided options.
Explanation:
Part 1: True, the information given about the total costs incurred by the movie studio from last year shows that after the adjustments for the differences in totals
3rd movie cost - 2nd = 132-84 = 48 million
Thus, the variable costs must be at least $47 million but less than $255 million as well.
Part 2: False, the marginal cost for producing the first movie was $45 million, while the studio produced three films during that period.
In conclusion, the variable costs for all three films last year were
45 x 3 = 135 million
Answer:
(b) macaroni is categorized as an inferior good, and the price elasticity of supply is zero.
Explanation:
An increase in income by 10 percent results in a 15% reduction in the demand for macaroni and cheese without any change in price. This suggests that macaroni is indeed an inferior good with zero price elasticity of supply.
Inferior goods experience lower demand as incomes rise, supported by the observation that ‘’A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni demanded’’.
In terms of price elasticity of supply, a value of zero indicates that the supply amount remains unchanged regardless of price fluctuations: the supply is "fixed". The original scenario states there was ''no change in the price of macaroni,'' indicating that the elasticity of supply in this situation is zero.
