leo's markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. the tax rate is 21 percent and the equity multiplier is 1.6. what is the return on equity?

When the topic of commissions was brought up, the agents started comparing their commission fees. Betty should warn her pals that this might be against the Sherman Antitrust Act.

A federal law called as the Sherman Antitrust Act of 1890 forbids actions that restrict interstate trade and market competition. Any agreement, plot, or alliance of commercial interests that restricts international or intrastate trade is forbidden. Every "monopolization, attempted monopolies, conspiracy, or combine to monopolize" is prohibited by the Sherman Act, and so is "any contract, combination, or conspiracy in interference with trade." The United States Congress passed the Sherman Antitrust Act in order to outlaw cartels, monopolies, and trusts. Its goals were to regulate intrastate commerce and advance economic fairness and competition. In 1890, it was sponsored and approved by Ohio U.s. Senator Sherman.

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Buyer A would buy Link Professional for $600 and Link Home for $500. Buyer B would buy Link Professional for $400 and Link Home for $300.

i. To find the optimal price and resulting revenue under the following scenario, consider the willingness to pay (WTP) of the 2 potential buyers and follow the below steps:

Step 1: To find the optimal price for Link Professional, determine the maximum price that Buyer A and Buyer B are willing to pay. The maximum of the two is $600. This means that if you price Link Professional at $600, you will sell it to Buyer A and make a total revenue of $600. If you price it lower than $600, both buyers will buy Link Professional, but you will earn less revenue.

Step 2: To find the optimal price for Link Home, determine the maximum price that Buyer A and Buyer B are willing to pay. The maximum of the two is $500. This means that if you price Link Home at $500, you will sell it to Buyer A and make a total revenue of $500. If you price it lower than $500, both buyers will buy Link Home, but you will earn less revenue.The optimal prices and the resulting revenue are as follows:Price of Link Professional: $600Revenue from Link Professional: $600Price of Link Home: $500Revenue from Link Home: $500Therefore, the total revenue is $1,100. Buyer A would buy Link Professional for $600, and Buyer B would buy Link Home for $500.

ii. If you could identify each buyer and make targeted offers, the prices would be different for each buyer. Follow the below steps to find out what price would you offer to each and how much revenue would you earn:

Step 1: For Link Professional, since Buyer A has a WTP of $600, you should charge her the maximum amount, $600. For Buyer B, since he has a WTP of $400, charge him $400.

Step 2: For Link Home, since Buyer A has a WTP of $500, charge her $500. For Buyer B, since he has a WTP of $300, charge him $300.The prices you would offer to each buyer and how much revenue you would earn are as follows: Price of Link Professional for Buyer A: $600Revenue from Link Professional: $600Price of Link Professional for Buyer B: $400Revenue from Link Professional: $400Price of Link Home for Buyer A: $500Revenue from Link Home: $500Price of Link Home for Buyer B: $300Revenue from Link Home: $300Therefore, the total revenue is $1,800.

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The real rate of return was b) 6.40 percent.

To calculate the real rate of return, we need to subtract the inflation rate from the rate of return.

Real rate of return = Rate of return - Inflation rate

Real rate of return = 11.29% - 4.6%

Real rate of return = 6.69%

Therefore, the real rate of return was 6.69%. However, this answer is not one of the options given. To choose the closest option, we need to round the answer to the nearest 0.1%.

Rounding to the nearest 0.1%, we get:

Real rate of return = 6.4%

Therefore, the real rate of return was 6.4%, which is closest to the option of 6.40%.

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When a price searcher firm is currently producing and selling 100 units of output at a price of $18, if, at the current output level, marginal cost is $16 and marginal revenue is $9, to maximize profits the firm should increase its production to reduce its price.

Searcher firms (or price-searcher firms) are firms that have some control over the price of the goods or services they sell, whereas competitive firms have no control over the price of the goods or services they sell. For example, Apple is a price-searcher firm because it has some control over the price of its iPhones.

On the other hand, a farmer is a competitive firm because they have no control over the price of their tomatoes. Now, let's discuss the profit maximization for a price-searcher firm, which is the given topic here. In order to maximize its profits, a price searcher firm should produce at a level where marginal cost equals marginal revenue, that is, MC = MR.

Therefore, if the current output level's marginal revenue is less than marginal cost, the firm should reduce its production.

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A monopolist can maximize their profits when the output effect is greater than the price effect by producing and selling more units at a lower price, resulting in positive marginal revenue. Here option A is the correct answer.

When the output effect is greater than the price effect, a monopolist can increase their total revenue by reducing the price of their product, as the increase in demand for their product will more than compensate for the lower price.

This is because the output effect measures the increase in total revenue resulting from selling one more unit of the product, while the price effect measures the reduction in total revenue resulting from lowering the price of all units sold.

In this situation, the monopolist can continue to increase their total revenue by selling more units at a lower price. As a result, the marginal revenue of the monopolist will be positive. This means that each additional unit sold will increase the total revenue of the monopolist.

To maximize their profits, the monopolist should continue to produce and sell units until their marginal revenue equals their marginal cost. At this point, the monopolist will have achieved the highest possible profit, as any additional units produced and sold will result in a decrease in total profit.

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Complete question:

For a monopolist, when the output effect is greater than the price effect, marginal revenue is group of answer choices

A - positive.

B - negative.

C - zero.

D - maximized.

A group of answer choices qualifies as a bailment. It is important to provide accurate and concise responses that clearly answer the question at hand.

A bailment is defined as a legal relationship in which one person gives another person property to keep safe, often for a period of time. The person who gives the property is known as the bailor, and the person who receives the property is known as the bailee.The other answer choices provided do not accurately describe an illegal sale.

A conditional sale is a type of sale in which the seller allows the buyer to take possession of the item while making payments. The sale is only completed when the final payment is made. Enforceability of an illegal sale depends on whether the illegality is known to the buyer or not.

If the buyer knows the sale is illegal, then it cannot be enforced. However, if the buyer is unaware of the illegality, then the sale may be enforced.In conclusion, it is important to provide accurate and concise responses that clearly answer the question at hand.

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The design flowrate refers to the quantity of water that should be available to a building at a specified time.

It is the rate at which water is expected to flow in the water supply system when the building is being used to its full capacity.

The design flowrate is used to determine the size of the water supply pipes and the fire protection equipment that should be installed. It is critical that a building's water supply system be able to provide the design flowrate during peak usage periods.

In the context of a residential development, the maximum day fire flow (MDFF) demand is calculated using the district demand factors.

The MDFF is the maximum amount of water that will be required to fight a fire in the development over a 24-hour period. District demand factors (DDFs) are used to calculate the MDFF by multiplying the total expected water consumption by a factor that represents the demand for fire protection.

The DDF varies based on the occupancy of the building, the type of building, and the fire protection systems installed. Therefore, the MDFF demand for the residential development can only be calculated if these factors are known.

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The type of private solution to the externality of appealing music that occurred is c) Integration of different types of businesses.

The proprietor of the jazz club bought the cafe to internalise the good externality of the appealing music performed in the club, which was the private solution to the externality. By combining various kinds of businesses, the proprietor of a jazz club was able to profit from the beneficial effects on the nearby café as well as the increased customer traffic and income brought about by the music performed in the club.

In the given case, charities, moral standards and societal sanctions, contracts, and other private remedies to externalities do not apply. To handle externalities, charities rely on voluntarily made contributions, but this is unimportant in given context. Moral codes and societal sanctions are unwritten laws and customs that motivate people or organisations to behave morally, but this also has no bearing on the situation at hand. Contrary to what is implied in the scenario, contracts contain clear deals between parties to handle externalities.

Complete Question:

Imagine that a cafe enjoys a large increase in customers whenever the jazz club next door features a band playing appealing music because it can be easily heard from the cafe. The jazz club owner decides to purchase the cafe so that he can internalize this positive externality. Which of the following types of private solution to the externality of appealing music has occurred in this case?

a) Charities

b) Moral codes and social sanctions

c) Integration of different types of businesses

d) Contracts

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If GDP calculations included measurements of pollution and environmental damage, GDP values would most likely decrease.

The reason behind the decrease in GDP is the value of goods and services produced within a country's borders, but it does not take into account the negative externalities associated with economic activity, such as pollution, depletion of natural resources, and environmental damage.

So, GDP would more accurately affects  the true costs and benefits of economic activity. suppose a factory that is producing goods that can cause  pollution and affect the environment, this would be reflected as a negative impact on GDP, as the cost of the pollution and damage would be taken into account.

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If a business has both the focus and ability to maximize profits for shareholders but also seeks after a broader mission without maximizing shareholder profits, then it is most likely to be a B Corporation. The correct answer is option C.

A B Corporation is a type of business entity that is structured to generate a profit while also pursuing a social or environmental goal. B Corporations differ from traditional corporations in that they are legally required to consider the impact of their decisions on all stakeholders, including shareholders, workers, customers, and the environment.

The B Corporation certification was established by the nonprofit organization B Lab to identify companies that meet specific social and environmental standards. To be certified as a B Corporation, a company must undergo an assessment that evaluates its impact on all stakeholders and its commitment to social and environmental goals.

Option C is the correct answer.

"

Complete question

If a business has both the focus and ability to maximize profits for shareholders, but also seeks after a broader mission without maximizing shareholder profits, what type of business entity is it most likely to be?

a. S Corp

b. LLC

c. B Corp

d. Partnership

"

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To obtain evidence about the operating effectiveness of controls, an auditor selects tests from a variety of methods, including inquiries, external confirmations, analytical procedures, and calculations. Thus all option correct .

Inquiries: The auditor may ask questions of personnel at various levels of the organization to gather information about the design and operation of controls.

External confirmations: The auditor may send requests to third parties, such as banks, customers, or suppliers, to confirm information related to the client's controls and operations.

Analytical procedures: The auditor may perform analyses of financial or non-financial data to identify unusual trends, fluctuations, or relationships that may indicate control deficiencies or risks.

Calculations: The auditor may perform calculations to test the accuracy and completeness of financial information, such as recalculating totals, verifying mathematical accuracy, or tracing amounts to supporting documentation.

By using a variety of methods to gather evidence about the operating effectiveness of controls, the auditor can obtain a more complete understanding of the client's control environment and identify potential areas of risk or control deficiencies.

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Full Question: to obtain evidence about the operating effectiveness of controls, an auditor selects tests from a variety of methods

(A) if the initial cost is $3,550. The payback period is 4 years.

(B) if the initial cost is $4,600. The payback period is  5 years.

(C) if the initial cost is $9,000. The payback period is 0 years.

(A) If the starting cost is $3,550, the total monetary streams are as follows:

Year 1: $1,000

Year 2: $1,000 + $1,000 = $2,000

Year 3: $2,000 + $1,000 = $3,000

Year 4: $3,000 + $1,000 = $4,000

Year 5: $4,000 + $1,000 = $5,000

Year 6: $5,000 + $1,000 = $6,000

Year 7: $6,000 + $1,000 = $7,000

Year 8: $7,000 + $1,000 = $8,000

In year 4, the total cash inflows equal the starting expense of $3,550. As a result, the repayment time is four years.

(B) If the starting cost is $4,600, the total monetary streams are as follows:

Year 1: $1,000

Year 2: $1,000 + $1,000 = $2,000

Year 3: $2,000 + $1,000 = $3,000

Year 4: $3,000 + $1,000 = $4,000

Year 5: $4,000 + $1,000 = $5,000

Year 6: $5,000 + $1,000 = $6,000

Year 7: $6,000 + $1,000 = $7,000

Year 8: $7,000 + $1,000 = $8,000

In year 5, the total cash inflows equal the starting expense of $4,600. As a result, the repayment time is five years.

(C) If the starting cost is $9,000, the total monetary streams are as follows:

Year 1: $1,000

Year 2: $1,000 + $1,000 = $2,000

Year 3: $2,000 + $1,000 = $3,000

Year 4: $3,000 + $1,000 = $4,000

Year 5: $4,000 + $1,000 = $5,000

Year 6: $5,000 + $1,000 = $6,000

Year 7: $6,000 + $1,000 = $7,000

Year 8: $7,000 + $1,000 = $8,000

The total cash inflows will never match the starting expense of $10,000. As a result, the endeavor never pays off. The repayment time is nil.

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Internal controls are put in place by an organization to protect its assets and resources from various risks and threats. However, natural disasters are beyond the control of an organization and cannot be prevented or avoided by internal controls.

While internal controls can help mitigate risks such as employee theft, robbery, unauthorized use, and other intentional or unintentional acts, they cannot prevent the physical destruction of assets caused by natural disasters like earthquakes, hurricanes, or floods. Instead, organizations may need to have contingency plans in place to deal with such events and minimize their impact. It is important for organizations to regularly review and update their internal controls to ensure they address current and emerging risks.

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Lowest production costs of any product life cycle stage, is the response. While the growth stage is characterized by rapidly rising sales, increasing profits, and rapid market acceptance, it is not necessarily associated with the lowest production costs.

In fact, production costs may still be relatively high during the growth stage as the company invests in expanding production capacity to meet increasing demand. Manufacturing is similar to production, however production is more extensive. It describes the methods and procedures used to transform unfinished or semi-finished things into finished goods or services, either with or without the aid of machinery. A production process is a method of utilizing financial resources, such labor, pricey equipment, or land, to produce goods and services for consumers.

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A movement from point V to X could occur due to short-term factors such as increases in demand, reductions in the supply of resources, or monetary policy changes.

Point X represents a situation where the unemployment rate is lower than the long-run natural rate of unemployment, while the inflation rate is higher than expected. This scenario could occur due to short-term factors such as an increase in demand for goods and services or a temporary reduction in the supply of resources.

For example, an unexpected increase in consumer demand could cause firms to hire more workers to produce more goods and services, leading to a lower unemployment rate. However, if the increase in demand is not sustainable, it could result in higher prices as firms struggle to meet the demand with limited supply. This could increase the inflation rate, pushing the economy to point X.

Alternatively, if there was a temporary reduction in the supply of resources such as oil or labor, it could lead to higher prices and inflation. If the Federal Reserve responds by increasing the money supply to stimulate demand, it could lead to lower unemployment rates but higher inflation rates, pushing the economy towards point X.

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Many companies use powerful computers to dig through volumes of data to discover patterns about their customers and products. This activity is called data mining.

Using computer systems to examine big data sets and find patterns, correlations, and other insights that may be utilized to guide business choices is known as data mining.

Some alternatives that could be relevant to the use of data in commerce include:

Analyzing data sets to derive conclusions and insights about the information they contain is known as data analytics.

Business intelligence is a collection of tools and methods for analyzing corporate data and providing insights into trends and performance.

Big data refers to both the huge and complex data sets that corporations and other organizations produce as well as the technology that are used to store, manage, and analyze them.

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complete question -

Many companies use powerful computers to dig through volumes of data to discover patterns about their customers and products. This activity is called data ____.

a. mining

b. snooping

c. surveying

d. discovery

Business letters are necessary when persuasive, well-considered presentation is important and confidentiality is paramount, and recipients are located in another country.

When it comes to professional communication in business, letters are important as they offer a written record of communication that can be stored and referred to in the future. In particular, business letters are an essential way of communicating with clients, customers, and other external organizations.

Persuasive, well-considered presentation is important means business letters allow you to present your ideas or proposals in a structured and persuasive manner, making them more likely to be considered by the recipient.

Confidentiality is paramount means business letters can be used to convey sensitive information, ensuring that only the intended recipient has access to it. Recipients are located in another country means business letters provide a formal method of communication, which is essential when dealing with international contacts.

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If two goods are complements, this means that a rise in the price of one commodity will induce a downward shift in demand for the other commodity.

a) An increase in the price of a complement good would lead to a decrease in demand for the original good. This is because the two goods are consumed together, and if the price of one increases, consumers may opt to buy less of both goods or switch to substitutes.

b) A decrease in the number of buyers would lead to a decrease in demand for the good. This is because there are fewer people in the market to buy the product, which reduces the overall demand for the good.

c) A fall in consumer income would lead to a decrease in demand for normal goods. This is because consumers have less disposable income to spend on goods and services, and may prioritize necessities over luxury items.

d) A decrease in the price of a complement good would lead to an increase in demand for the original good. This is because the two goods are consumed together, and if the price of one decreases, consumers may opt to buy more of both goods or switch from substitutes.

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If aggregate demand grows slower than long-run and short-run aggregate supply, then the economy is experiencing a recessionary gap. The correct answer is option : 2.

In this situation, the proper fiscal policy is to increase government purchases or decrease taxes, which would increase aggregate demand and shift it to the right. The increase in government purchases would directly increase aggregate demand, while the decrease in taxes would leave individuals with more disposable income, increasing their consumption and investment expenditures. Increasing lump-sum taxes would have the opposite effect by reducing disposable income and decreasing consumption and investment expenditures. Option: 2 is correct.

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--The complete question is, from an initial long-run equilibrium, if aggregate demand grows slower than long-run and short-run aggregate supply, then the proper fiscal policy is to

The type of requirements risk that is not a common type is patents and copyrights. The correct answer is option d.

Requirements risks refer to the potential issues, events, and conditions that are uniquely related to project or product requirements.

These issues could have a detrimental effect on the project or product if they are not properly addressed or managed.

Types of requirements risks include:

This occurs when the requirements that were provided for the project or product are incorrect, ambiguous, or incomplete.

This can cause confusion, delay, and additional costs to the project.

In this type of risk, requirements are either over or under-detailed. When there is under-specification, the requirements are unclear, and the product or project suffers due to a lack of detail.

On the other hand, when over-specification occurs, the requirements are too specific, causing the project or product to suffer from unnecessary additional costs.

Scope creep occurs when additional features, functions, or requirements are added to a project that was initially not included in the requirements. This risk can cause the project to become more complex, leading to additional costs and a longer project timeline.

This is not a common type of requirements risk. Patents and copyrights are related to the protection of intellectual property. They have nothing to do with the requirements of a project or product.

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The proration approach involves allocating manufacturing overhead costs to products or inventory based on the amount of overhead in ending balances.

This means that  final balance in finished goods inventory would depend on  amount of manufacturing overhead allocated to that inventory, which in turn would be based on the specific allocation method and the amount of overhead in the ending balances.  It involves using the amount of overhead in ending balances . In this approach, manufacturing overhead costs are typically allocated based on  amount of direct labor used in producing a product or item of inventory. Ultimately, the final balance in finished goods inventory would need to be calculated using the specific information and methodology provided in the problem or scenario.

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The answer is (b) the interest rate is 4 percent and the expected inflation rate is 1 percent. In this situation, the real interest rate (the nominal interest rate minus the inflation rate) is positive, meaning the lender will earn a real return on the loan.

The answer is (b) -2 percent. The real interest rate is calculated by subtracting the expected inflation rate from the nominal yield to maturity. In this case, 7% - 4% = 3%, but since inflation is expected to be 4%, the real interest rate is -1%.

The answer is (a) wealth. When people become wealthier, they have more money to invest in assets, so the demand for all assets (stocks, bonds, real estate, etc.) will increase.

The answer is (c) falls; rises. The expected return on GE stock has increased relative to the expected return on U.S. Treasury bonds, so the demand for GE stock will increase, causing its price to rise. However, the expected return on GE stock is still lower than the new expected return on U.S. Treasury bonds, so the expected return of holding GE stock relative to U.S. Treasury bonds has fallen.

The answer is none of the above. The demand for Picasso paintings is likely to rise due to factors specific to the art market, such as increasing popularity, scarcity, or collector demand, rather than factors related to other asset markets like stocks, real estate, or bonds.

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The bond equivalent rate on fed funds would be 1.44% if the quoted rate is 1.40 percent.

The bond equivalent rate is the annualized yield on a discount instrument, such as a treasury bill or commercial paper, calculated on a bond-equivalent basis.

To convert an overnight fed funds rate into a bond equivalent rate, we first need to adjust for the fact that the overnight rate is quoted on an actual/360-day basis, while a bond equivalent rate is based on a 365-day year. Therefore, we need to divide the quoted rate by 360 and then multiply by 365 to get the bond equivalent rate.

So, if the overnight fed funds rate is quoted as 1.15 percent, the bond equivalent rate would be:

Bond equivalent rate = (1.15/360) x 365 = 1.16%

Similarly, if the quoted rate on fed funds is 1.40 percent, the bond equivalent rate would be:

Bond equivalent rate = (1.40/360) x 365 = 1.44%

Overall, it's important to understand the concept of bond equivalent rates as they allow for easy comparison of yields on different types of debt securities with varying maturities and payment structures.

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Negotiable instruments option (c) are a substitute for cash

Negotiable instruments are financial documents that can be transferred from one person to another, and they represent a promise to pay a certain amount of money. They are not generally gold certificates, as they do not necessarily represent a physical commodity.

Negotiable instruments can make business deals easier because they provide a flexible way to exchange funds without requiring the use of cash. For example, a business can use a check to pay a supplier, rather than carrying around large amounts of cash.

Negotiable instruments are not part of federal regulatory controls, but they are subject to certain laws and regulations. For instance, the Uniform Commercial Code (UCC) provides rules for negotiable instruments, including checks, promissory notes, and bills of exchange.

Therefore, the correct option is (c) are a substitute for cash

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The cost of Alphabet Company's ending inventory using the FIFO method is $112.00.

Using this method, we can determine the cost of the goods sold (COGS) for the items sold in October as follows:

Sold A: 1 letter at $11.00 per letter = $11.00 COGS

Sold D: 1 letter at $11.00 per letter = $11.00 COGS

Sold E: 1 letter at $11.00 per letter = $11.00 COGS

Sold H: 1 letter at $13.00 per letter = $13.00 COGS

Sold J: 1 letter at $13.00 per letter = $13.00 COGS

Sold N: 1 letter at $14.00 per letter = $14.00 COGS

Total COGS for items sold in October: $73.00

8 letters left in inventory at $14.00 per letter = $112.00

The FIFO method, or First-In-First-Out, is an inventory accounting method that is used to track the value of inventory and the cost of goods sold (COGS) for a business. Under this method, the first units of inventory that are purchased or produced are assumed to be the first units sold or used, with newer units being sold or used later.

The FIFO method is widely used in industries such as retail and manufacturing, where the products being sold are perishable or subject to rapid obsolescence. This is because the method ensures that the oldest and potentially less desirable inventory is sold first, reducing the risk of inventory spoilage or obsolescence.

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The rule that explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent is the "20-30-50 rule."

This rule suggests that in any given organization, about 20% of employees will consistently do the right thing, 30% will be indifferent and will do what is required of them, and 50% will be influenced by the prevailing culture and the actions of those around them.

This rule helps organizations to understand that creating a positive culture and promoting ethical behavior can have a significant impact on the behavior of the majority of employees.

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Under a freely floating exchange rate system, inflation in the U.K. will increase demand for U.S. goods and weaken the U.S. dollar.

Inflation is a term used to describe a period of time when the rate at which prices of goods and services in an economy rise significantly. Inflation rates that are too high can be detrimental to an economy since it can cause the value of a currency to decrease.When an economy has high inflation rates, this can weaken a currency when compared to other currencies, leading to a decrease in demand for goods and services of that economy. This is because the value of a currency that is experiencing high inflation is weakened when compared to other currencies.

In this case, the US dollar would weaken in comparison to the British pound, and the demand for US goods and services would increase. Therefore, under a freely floating exchange rate system, inflation in the U.K. will weaken the U.S. dollar. Under a freely floating exchange rate system, inflation in the U.K. will increase demand for U.S. goods and weaken the U.S. dollar.

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The research approach used by the company is called conjoint analysis.

This approach which is used to understand how people make choices among different products or the services based on the multiple attributes such as price, flavor, size, etc. In this case, the company is using repeated comparisons of product pairs with varying attributes of flavoring strength and the price to determine consumer preferences and optimize their product offerings accordingly.

Conjoint analysis helps businesses identify the most important attributes to consumers and the trade-offs they are willing to make, enabling them to develop more effective marketing strategies and product designs.

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The average accounting return (AAR) is a measure of the profitability of a project, calculated as the average net income generated by the project divided by the initial investment.

To calculate the AAR for the given project, we first need to calculate the average net income by adding up the net income for each year and dividing by the number of years:

Average net income = ($15,900 + $18,400 + $24,000 + $15,800) / 4 = $18,525

Next, we need to calculate the average investment by adding the initial investment and the salvage value, and dividing by two:

Average investment = ($190,000 + $77,000) / 2 = $133,500

Finally, we can calculate the AAR by dividing the average net income by the average investment, and expressing the result as a percentage:

AAR = ($18,525 / $133,500) x 100% = 13.88%

Therefore, the average accounting return for the project is 13.88%.

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The company should finish the units as it would result in higher revenue and profits compared to selling them unfinished.

To decide if the organization ought to sell the incomplete units with no guarantees or complete them, we want to ascertain the gradual income and expenses related with every choice.In the event that the organization sells the incomplete units with no guarantees, it will produce income of $4.00 per unit, bringing about all out income of $4,000 (1,000 units x $4.00 per unit).

On the off chance that the organization finishes the units, it will cause steady expenses of $4.50 per unit ($1.00 for direct materials + $2.00 for direct work + $1.50 for above) and create income of $8.00 per unit, bringing about all out income of $8,000 (1,000 units x $8.00 per unit) and absolute gradual expenses of $4,500 (1,000 units x $4.50 per unit).

Contrasting the two choices, we can see that finishing the units would bring about higher income and benefits ($8,000 in income less $4,500 in steady expenses) than selling the units with no guarantees ($4,000 in income). Consequently, the organization ought to complete the units and sell them for $8.00 per unit.The right response is (b) finish the units.

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